Surat’s Diamond Company Grants 10-Day Vacation To 50,000 Workers; Here’s Why
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Surat’s Diamond Company Grants 10-Day Vacation To 50,000 Workers; Here’s Why
Chairman Vallabhbhai Lakhani acknowledged the industry’s current struggles, attributing them to a global recession and the lack of demand for polished diamonds.
A building in Surat that will house a diamond trading centre surpassed the Pentagon to become the world’s largest office building. (Photo: Instagram/ surat_diamond_bourse)
Amidst a global shift away from polished diamonds, Kiran Gems, the world’s largest natural diamond manufacturer, has announced a 10-day holiday for its 50,000 employees in Surat from August 17–27. The decision comes as a response to the declining demand for polished diamonds in the market, since the aftermath of the Russia-Ukraine conflict in 2022. The US imposing restrictions on Russian-origin diamonds and the G-7 nations enforcing an embargo have further strained the diamond industry.
Chairman Vallabhbhai Lakhani acknowledged the industry’s current struggles, attributing them to a global recession and the lack of demand for polished diamonds. He stated in an interview with Indian Express that the diamond business has been going through a “bad patch”. He emphasized the need for supply management to boost demand and stabilize the sector.
According to him, the demand for polished diamonds would increase and help the sector if supply is managed. However, the value of polished diamonds is down internationally, making it more difficult for diamond makers to operate their businesses.
“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,” he added.
In a strategic move to regulate supply and potentially increase prices, Kiran Gems has initiated an early reduction in gem production. This decision deviates from the traditional practice in Gujarat, where diamond firms typically extend breaks around Diwali. Despite the cutback, Lakhani assured that all employees will receive their salaries, although some amounts may be withheld temporarily.
Speaking to PTI, Vallabhbhai stated that all workers will receive their salaries at this time even though certain amounts will be withheld.
Kiran Gems, a key buyer of raw diamonds from De Beers, reported an annual turnover of Rs 17,000 crore. The holiday announcement follows De Beers’ revelation of a 15% decline in rough diamond production in the second quarter of the 2024 fiscal year. The company’s workforce comprises over 50,000 diamond polishers, with 40,000 handling natural diamonds and 10,000 specializing in lab-grown diamonds.
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