Kiran's 10-Day Shutdown for 50,000 Workers
August 06, 24
(IDEX Online) - Kiran Gems, the Surat-based diamond manufacturer that employs over 50,000 polishers, will close its operations for 10 days later this month, in response to a global slump in demand.
It is the first time the company, which describes itself as "the world's largest manufacturer of natural polished diamonds," has announced such a shutdown since it was established in 1985.
"We have announced a 10-day vacation for our 50,000 employees," Kiran Gems chairman Vallabhbhai Lakhani told the Indian news agency PTI. "We are forced to announce this vacation because of the recession."
He said the move was aimed at controlling the production of diamonds. India's polished diamond exports have fallen every month this year and suffered one of their heftiest drops, down 26 per cent year-on-year to $1.02bn, in June.
Kiran's vast workforce will be paid a reduced salary during the August 17 to August 27 closure. The company did not say by how much it would be cut.
Kiran reportedly has an annual turnover of over $2bn and is among the biggest of De Beers' 70 sightholders.
Lakhani said he hoped competitors in India would follow suit in response to the current market conditions.
""Other players are also affected by this fall in demand but they are silent," he told PTI. "We declared this proactively because we want people to know reality. This vacation for employees will help rationalise our production."
Indian manufacturers drastically cut their rough imports last October in a move coordinated by the Gem and Jewellery Export Promotion Council (GJEPC) and aimed at stabilizing prices after 18 months of decline.
Pic courtesy Kiran Gems.