Kiran Gems, a diamond manufacturer based in Surat and employing over 50,000 polishers, will temporarily shut down operations for 10 days later this month due to a global decrease in demand. This marks the first time since its establishment in 1985 that the company, self-described as the world’s largest natural polished diamond manufacturer, has implemented such a closure.
“We have decided to give our 50,000 employees a 10-day break,” said Vallabhbhai Lakhani, Chairman of Kiran Gems, to Indian news agency PTI. “This decision is due to the economic downturn forcing us to take this step.”
The shutdown aims to regulate diamond production amidst declining exports from India, which saw a significant 26% year-on-year decrease to $1.02 billion in June alone.
During the closure from August 17 to August 27, Kiran Gems’ extensive workforce will receive reduced salaries, although specific details on the extent of the pay cuts were not disclosed by the company.
With an annual turnover surpassing $2 billion, Kiran Gems ranks among the largest of De Beers’ 70 sightholders. Lakhani expressed hope that other Indian competitors would follow suit in response to current market challenges.
“Other industry players are also impacted by the decreased demand but have not taken similar actions,” Lakhani noted to PTI. “We have proactively announced this to communicate the reality of the situation. This temporary shutdown will assist in rationalizing our production.”
Last October, Indian manufacturers coordinated a significant reduction in rough diamond imports through efforts led by the Gem and Jewellery Export Promotion Council (GJEPC), aimed at stabilizing prices following an 18-month decline.
