Maruti Impex, a prominent manufacturer of polished natural diamonds, has announced a temporary closure of its operations, directly affecting approximately 15,000 workers across Surat, Bhavnagar, Amreli, and Junagadh.
The decision comes as founder Suresh Lakhani remains in a coma following a stroke three months ago.
The suspension, set to last three to four months, was communicated to employees via an audio message coinciding with the post-Diwali reopening of diamond units. Staff were paid salaries through the holiday but have been advised to seek alternative employment as the company faces operational uncertainties.
Leadership Void and Market Struggles
Lakhani, the sole decision-maker since Maruti Impex’s founding in 1995, oversaw operations from the procurement of rough diamonds to sales. In his absence, family members and senior staff attempted to maintain operations, but challenging market conditions forced the company to take a pause.
Dinesh Navadiya, chairman of the Indian Diamond Institute, commented on the situation, stating:
“Without his (Lakhani’s) leadership and given the current challenging market conditions, the management is unable to continue operations. They sustained the business until Diwali despite his absence.”
Maruti Impex operates over 100 units, including a mix of directly owned facilities and outsourced operations. The company is known for specialising in the cutting and polishing of natural diamonds.
Implications for the Jewellery Industry
This situation underscores the challenges faced by diamond manufacturers reliant on individual leadership, particularly in family-owned and leader-driven businesses.
This disruption may impact diamond availability and pricing, particularly for smaller, polished diamonds, a segment where Maruti Impex has been an important supplier. It also highlights the need for manufacturers to prepare for market fluctuations and leadership contingencies.