Why this Surat-based diamond firm gave 10-day ‘vacation’ to 50,000 workers
Kiran Gems said diamond industry is going through a rough demand patch and there is no demand for polished diamonds in the global market.
Kiran Gems, a diamond manufacturer in Gujarat's Surat has announced a 10-day vacation from August 17 to 27 for its 50,000 employees as a means to control production to tackle falling global demand, The Indian Express reported.
The company said the diamond industry is going through a rough demand patch and there is no demand for polished diamonds in the global market. "We have declared a 10-day holiday so that the production of diamonds can be controlled. Such a decision was taken for the first time in the company’s history,” said its chairman, Vallabhbhai Lakhani.
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Diamond factories in Gujarat go on long holidays during Diwali. But the unusual announcement is a means to cut down production, which the company believes will control supply and hike prices that will benefit the industry.
The company also aims to compensate the workers for their 'vacation days. Its chairman said the production cut can benefit the industry if other diamond companies collectively announce production control measures.
“Over 50,000 diamond polishers work in my firm out of which 40,000 cut and polish natural diamonds while 10,000 work in the lab-grown diamond unit,” Lakhani told Indian Express.
He is among the first to relocate his premises from Mumbai to Surat Diamond Bourse (SDB) after it was inaugurated by Prime Minister Narendra Modi in December 2023.
The company, which claims to be the ‘world’s largest natural diamond manufacturer’ and is also among the largest exporters of polished diamonds.
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With an annual turnover of ₹17,000 crore, Kiran Gems is one among the authorised buyer of rough diamond of De Beers, one of the leading global diamond companies.
Due to falling global demand, De Beers has reported a 15 per cent fall in rough diamond production in second quarter of financial year 2024 compared to first quarter.