Demand will Pick up Within Three Months - Kiran Gems
August 08, 24
(IDEX Online) - Global demand for diamonds is likely to pick up in the next two or three months, according to Dinesh Lakhani, global director of Kiran Gems.
The company, based in Surat, India, announced a 10-day shutdown for its 50,000 staff, from 17 August, blaming the worldwide recession.
But in an interview with business news channel CNBC TV18, Lakhani said he remained optimistic about the future.
"We are an old company and we have never lay off our people. This vacation is a short vacation and we have not laid off our workers," he said.
"This decision is solely made to match the supply with the demand which will make the market healthy. There is no other agenda here."
Kiran, which describes itself as "the world's largest manufacturer of natural polished diamonds," reportedly has an annual turnover of over $2bn and is one of De Beers' biggest sightholders.
The company's first such shutdown in its 39-year history is aimed at controlling the production of diamonds, as exports remaining sluggish.
"We are expecting the demand to pick up in two to three months," said Lakhani (pictured). "The smaller size goods are in demand as the local market is doing well. If we compare the local market in the last two years, the smaller-sized goods had a market share of 8-10 per cent, but now it is 20 per cent.
"Exports to China are 30 per cent (of market share). In the next three to four years we are expecting Indian market share to be 30 to 35 per cent.
"With regards to the US, I am hoping demand will pick up in the upcoming Xmas season. With regards to the Gulf and far east countries, they are doing well and with regards to China I am expecting it to improve soon.
"I see the future for India is bright and India has the monopoly for this business. For every 10 diamonds polished in the world, nine are from India. This means the people associated with this trade locally will have a bright future."