Kiran Gems Announces 10-Day Shutdown For Its 50K Employees

Kiran Gems, a natural diamond manufacturer, has announced a 10-day shutdown for its 50,000 employees to manage production amidst falling global demand and rising inventories. This break, set for 17-27 August, marks an unprecedented response to the current recession in the diamond industry.

"The diamond industry is going through a tough time... a recession period... as there is no demand for polished diamonds globally," Kiran Gems chairman Vallabhbhai Lakhani told The Indian Express. "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."

The industry's challenges have been exacerbated by US-imposed sanctions and a G-7 ban on Russian-origin diamonds following the Russia-Ukraine war in 2022. These geopolitical factors have severely affected diamond manufacturers, who are already facing declining prices and difficult market conditions.

"The price of polished diamonds has decreased globally, making it challenging for diamond manufacturers to sustain their businesses. If the supply is controlled, demand will grow, benefiting the industry," Lakhani explained.

Kiran Gems, with an annual turnover of Rs 17,000 crore, is a major player in the global diamond market and an authorised buyer of rough diamonds from De Beers. The company employs over 50,000 diamond polishers, with 40,000 working on natural diamonds and 10,000 in the lab-grown diamond sector. Lakhani mentioned that they are considering compensating workers for the vacation period.

“If other diamond companies collectively take a similar decision, the production can be controlled and it will help the industry," Lakhani said.