Kiran Gems announces 10-day vacation for its employees

It is due to a significant drop in global demand for polished diamonds

Around 50,000 employees in Surat, Gujarat, will be on holiday

Kiran Gems, one of the world’s largest manufacturers of natural polished diamonds, has announced a 10-day vacation for its employees due to a significant drop in global demand for polished diamonds. From August 17 to 27, approximately 50,000 employees in Surat, Gujarat, will be on holiday, as reported by The Indian Express.

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Vallabhbhai Lakhani, Chairman of Kiran Gems, explained the decision, citing the industry’s current downturn. “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,” Lakhani said. He added that the global price of polished diamonds has declined, making it challenging for manufacturers to sustain operations. However, he remains hopeful that curbing supply will eventually boost demand.

Lakhani assured that employees would be compensated during the break. “Over 50,000 diamond polishers work in my firm, of which 40,000 cut and polish natural diamonds while 10,000 work in the lab-grown diamond unit. We are also looking to compensate diamond polishers for the vacation days,” he confirmed. He also suggested that similar measures by other diamond companies could benefit the entire industry.

In response to rumors following Kiran Gems’ announcement, Jagdish Khunt, President of the Surat Diamond Association (SDA), clarified that the SDA has not announced any vacation dates. “Some mischievous elements did this and it was necessary to issue a clarification,” Khunt stated.

The diamond industry continues to navigate through challenging times, with stakeholders closely monitoring market trends and production strategies.