Surat's Kiran Gems Announces 10-Day Vacation For Employees Amid Low Diamond Demand
Since 95% of polished diamonds are exported, global factors affect the sale of the precious stones.
A major diamond manufacturing firm based in Surat, Kiran Gems, announced on Tuesday a 10-day "vacation" for its 50,000 employees from Aug. 17 to 27, due to diminished demand for polished diamonds in international markets caused by recession. According to the Kiran Gems company website, it is the "world's largest manufacturer of natural diamonds".
"We have announced a 10-day vacation for our 50,000 employees. Though we will deduct some amount, all employees will be paid a salary for this period. We are forced to announce this vacation because of the recession. I am tired of this recession now," Chairman Vallabhbhai Lakhani told PTI.
He emphasised the short supply of rough diamonds and the lack of sufficient demand for polished diamonds exported by the company.
"Other players are also affected by this fall in demand but they are silent. We declared this proactively because we want people to know reality. This vacation for employees will help rationalise our production. No one knows the exact reasons behind this recession," said Lakhani.
Jagdish Khunt, president of the Surat Diamond Association, echoed Lakhani's views, stating that the recession has hit the local diamond industry, which processes nearly 90% of the world's diamonds.
"This is the first time Kiran Gems has declared such a vacation (for employees). Though no other firm has taken such a step so far, it is the reality that recession has brought down the sale of polished diamonds," said Khunt.
Since 95% of polished diamonds are exported, global factors always affect the sale of the precious stones. He highlighted the Russia-Ukraine war and the Israel-Palestine conflict as some of the factors.
"The Russia-Ukraine war and Israel's action in Gaza are some of the factors which might have affected the demand globally. In 2022, our diamond industry's turnover was nearly Rs 2,25,000 crore, which has come down to nearly Rs 1,50,000 crore today. So, we have been negative for the last two years," said Khunt.
Approximately 4,000 large and small diamond polishing and processing units in Surat provide direct employment to nearly 10 lakh people, he said.
(With inputs from PTI)
