The Diamond King Savji Dholakia halts Diwali Gifts Amid Challenging times

The lavish Diwali tradition of Savji Dholakia, more commonly known as “Diamond King” has seen an unexpected halt. Shree Hari Krishna Exports, which is owned by the Diamond King has for years had the tradition of gifting its most skilled artisans with expensive gifts every Diwali celebration. This year, however, that will not be happening.

Taking both employees and the general public by surprise, Savji Dholakia announced that this year there will be no cars, houses, and other expensive gifts given to the employees. This decision has been forced upon the company by an ongoing recession in the diamond industry. Many jewelers are experiencing serious strain on their finances and Shree Hari Krishna Exports has not been spared.

Dholakia’s generosity toward his employees has always captured public attention. The Diamond King has been famed for his gifts that include luxury cars, apartments, and top-of-the-range jewelry. These would be given to the best-performing employees every Diwali celebration.

The current economic challenge has pushed many companies to cut down on spending. The jewelry industry, especially the diamond industry, has seen a drop in demand for the precious stones and prices too have dropped causing reduced revenue for many of the industry players that have no choice but to exercise financial prudence.

Dholakia expressed his heartfelt remorse to his artisans who had become accustomed to the lavish tradition. His statement however highlighted that despite the absence of the lavish gifts, the employees are still considered a major part of the business and their commitment to the company hasn’t gone unnoticed. He points out that the employees’ well-being is still important to Shree Hari Krishna Exports. 

With no clear end to the recession, it is understandable that the company has had to take such a drastic step towards ensuring the survival of the firm. Dholakia is confident that cutting lavish expenditures will ensure financial stability and ensure that all artisans can maintain their jobs. This is likely to be a disappointment for staff who were anticipating the customary luxury gifts. However, in the long run, they will be happy that they can still keep their jobs despite financial hardships within the industry.

Industry experts commenting on the departure from the company tradition describe it as understandable. The Diamond King’s move has received applause as a foresighted measure to weather the storm that is currently hitting the industry globally. 

Industry Woes

Shree Hari Krishna Exports is not alone in the struggle to overcome financial challenges. The global diamond trade has been affected by the Russia, Ukraine war that has dragged on and caused economic recession. The situation is also exacerbated by sanctions placed on Russian diamonds and reduced spending by Americans who make up the core of the diamond market.

Indian diamond producers have had to make similar sacrifices this Diwali. Although other manufacturers may not match the lavish gifts given by the diamond King, they are known to give jewelry to their employees during the celebration. This year, however, that is not likely to happen.

Some companies in Surat also made cuts to their production this year to manage the financial shortfalls. In some cases, manufacturers have had to reduce work schedules to 5 days a week which means they do not have to pay the same wages and have reduced production costs.

Industry Solution

The Gems and Jewelry Export Promotion Council (GJEPC) identifies the main cause of the slump as the reduced demand for loose diamonds. In a move to mitigate the problem or make it more manageable, Industry players are being urged to suspend the importation of natural diamonds between now and December 15, 2023. This is seen as a move to allow local manufacturers to maintain production that will sustain a feasible financial inflow and save the jobs of hundreds of artisans.

At the moment there is a 25% decline in the export of lab diamonds to USA, China, and Europe. This has resulted in an overflow of loose diamonds in Manufacturers’ stores and pushed prices to an unsustainable level.

Positive Outlook

Dholokia remains positive about the future of the diamond industry. He believes this is a situation they simply have to be patient with and eventually the good old days will return. The gifting tradition for Shree Hari Krishna Exports is not dead but simply suspended as they get the finances in order.

Currently, the company is investigating the possibility of having other ways to show appreciation to the artisans. These may include training programs or other benefits.

Even without the opulent gifts, the staff can be assured that they are valued and the business is under sensible management that will ensure its survival despite stormy weather.