Dinesh Lakhani, the global director of Kiran Gems, anticipates a boost in global diamond demand within the next two to three months.
Kiran Gems, headquartered in Surat, India, has announced a 10-day shutdown for its 50,000 employees, starting August 17. The company attributes this decision to the ongoing global recession.
In an interview with CNBC TV18, Lakhani expressed a positive outlook for the future. He assured that the shutdown is not a prelude to layoffs.
“We are a long-established company and have never laid off our employees. This is just a short break,” Lakhani said. “The purpose of this shutdown is to align our production with current demand to ensure a healthier market. There are no other motives.”
Kiran Gems, identified as the world’s largest manufacturer of natural polished diamonds, boasts an annual turnover exceeding $2 billion and is a major sightholder for De Beers. This is the first shutdown in the company’s 39-year history, aimed at adjusting diamond production amid slow exports.
“We expect demand to increase in two to three months,” Lakhani noted. “Smaller diamonds are currently in demand, and the local market is performing well. Previously, smaller diamonds made up 8-10 percent of the local market, but now they account for 20 percent.”
He also projected future market trends, stating, “Exports to China represent 30 percent of our market share, and we anticipate that the Indian market will grow to 30-35 percent over the next three to four years.”
Lakhani is hopeful that demand in the US will increase with the upcoming holiday season. He added that markets in the Gulf and Far East are performing well and expects improvement in China soon.
Looking ahead, Lakhani sees a bright future for India in the diamond industry. “India dominates this business, with nine out of ten polished diamonds globally coming from India. This signifies a promising future for those involved in the local diamond trade.”
