Surat Diamond Firm Vacation: A leading diamond manufacturing company based in Surat has sent its 50,000 employees on a 10-day ‘leave’ citing the recession. The company said that the demand for polished diamonds in the international markets has decreased due to the recession. Therefore, the company announced a 10-day ‘leave’ for its 50,000 employees from August 17 to 27.
According to Kiran Gems Company’s website, it is the world’s largest manufacturer of natural diamonds. Kiran Gems Chairman Vallabhbhai Lakhani told PTI-Bhasha, ‘We have announced a 10-day leave for our 50,000 employees. Although we will deduct some amount, all employees will be paid salary for this period.’
Diamond Traders Troubled By Recession
He said, ‘Due to the recession, we have been forced to declare this holiday. I am tired of this slowdown now,’ citing the low supply of rough diamonds and lack of adequate demand for the polished diamonds the company exports.
‘Nobody Knows The Exact Reason’
Lakhani said, “Other companies have also been affected by the fall in demand, but they are silent. We have announced it in advance because we want people to know the reality. This holiday for employees will help us rationalise our production. Nobody knows the exact reason behind this slowdown.”
Surat Diamond Association president Jagdish Khunt agreed with Lakhani and said the slowdown has hit the local diamond industry, which processes about 90 per cent of the world’s diamonds.
Polished Diamond Sales Down
Khunt said, “This is the first time Kiran Gems has announced such a holiday (for employees). Although no other company has taken such a step yet, it is a reality that the sale of polished diamonds has come down due to the recession.”
Trade Affected Due To These Reasons
Khunt said, ‘The Russia-Ukraine war and Israel’s action in Gaza are some of the factors due to which the demand has been affected globally. The turnover of our diamond industry was around Rs 2,25,000 crore in 2022, which has come down to around Rs 1,50,000 crore today. Therefore, we have been in a negative position for the last two years.’
He said about 4,000 large and small diamond polishing and processing units in Surat directly employ about 10 lakh people.
