Why Surat diamond firm gave its 50,000 workers 10-day vacation
What's the story
Kiran Gems, a Surat-based diamond manufacturing company, has announced a 10-day vacation for its 50,000 employees from August 17 to August 27. This unprecedented decision is a response to the declining global demand for polished diamonds. Historically, diamond manufacturing factories in Gujarat extend holidays during Diwali, but Kiran Gems has made this early announcement to cut down on gem production, aiming to control supply and potentially increase prices. The company believes that this measure will benefit the entire diamond industry.
Employee compensation
Kiran Gems to compensate employees for vacation days
Kiran Gems has also announced that it will compensate its employees for the vacation days. Vallabhbhai Lakhani, the company's chairman, said that he hopes that other diamond companies would implement similar production control measures. "The production cut can benefit the industry if other diamond companies collectively announce production control measures," he said.
Company details
Kiran Gems's workforce, annual turnover
Kiran Gems, which claims to be the "world's largest natural diamond manufacturer," is also an exporter of polished diamonds. With an annual turnover of ₹17,000 crore, Kiran Gems is an authorized purchaser of rough diamonds from De Beers—a leading global diamond company. Notably, the vacation decision comes in the wake of De Beers reporting a 15% decrease in rough diamond production in the second quarter of the financial year 2024 compared to the first quarter.