Lab-Grown

India: An Emerging Source for Lab-Grown Diamonds, Jewelry

Lab-GrownMar 16, 2022

India: An Emerging Source for Lab-Grown Diamonds, Jewelry

CVD diamond growers and jewelry manufacturers will help India consolidate its competitive advantages in diamonds and jewelry manufacturing.

Nine seeds in a CVD reactor may not grow uniformly. Product consistency is therfore of utmost importance in the growing of Lab Grown Diamonds. Image courtesy of ALTR
Mumbai—The demand for lab-grown diamonds and diamond jewelry continues to grow, with companies in India — long a cutting and polishing center for natural stones — poised to become key players in the market.

Estimates on what percentage of the diamond market lab-grown stones currently comprise vary. In a recent interview with National Jeweler, industry analyst Paul Zimnisky put global lab-grown diamond jewelry sales at $5.9 billion last year, making up 7-8 percent of the market.

He estimates global lab-grown diamond jewelry sales could top $8 billion in 2022, approaching 10 percent of the total diamond jewelry market, and near the $10 billion mark by 2023.

Diamonds below smaller than 2 carats are estimated to grow the fastest, with growth in the CVD segment outpacing HPHT. 

The colored lab-grown diamond market, meanwhile, is predicted to grow at a CAGR of 10.2 percent.

According to the Gem & Jewellery Export Promotion Council, India exported $1.05 billion worth of polished lab-grown diamonds from April 2021 to January 2022, registering growth of nearly 113 percent.

India exports mainly CVD diamonds and diamond studded diamond-set jewelry using both HPHT and CVD diamonds. Most of the HPHT rough used for jewelry manufacturing is imported from China. 

Growers are investing in, and mastering, the new CVD technology to ramp up the production.

Surat, the world leader in diamond cutting and polishing, has in recent times, witnessed a growing number of CVD diamond manufacturers in recent years. 

Abhishek Saraiya, vice president of diamond company Meraya, diamonds estimates there are 2,500 active reactors in India, predominantly in Surat, and a few in Jaipur and Mumbai. 

“The average monthly output of a typical reactor is 125 carats and costs $175,000. The most commonly used reactor is Japan’s Seki,” he said.

One of the leading manufacturers in Jaipur with an installed base of 80 reactors is Real Illusion LLP.

Director Anup Zaveri said the company has the capacity to grow certified diamonds from 0.5 to 5 carats.

Lumex DMCC has a diamond cutting, polishing and jewelry manufacturing unit in Surat. 

Founder Vishal Mehta said, “We use both HPHT and CVD diamonds for jewelry manufacturing. Being technology agnostic, we started with the former as it was the easiest available material. 

“The CVD business is becoming more transparent and with supplies improving, we now use both. Surat has 15 to 20 significant CVD growers with an installed base of 50 to 500 reactors.”

Anmol Bhansali, director of Goldiam International, shared his experience in the lab-grown diamond space. 

“We started growing diamonds at SEEPZ, Mumbai in 2015 and realized that the growing process of diamonds is quite different from the labor-oriented jewelry manufacturing. The high-tech business requires high-caliber talent, patience and commitment. During the first two years getting the product of desired quality, size and color was a challenge. In 2017 we would be lucky to grow round stones of 1 carat.”

Bhansali continued: “With sustained efforts and persistent experimentation, we were able to get the formula right. We can now produce polished diamonds of 2 carats easily. It is not uncommon to get a smooth production run for two months, followed by an output of cracked and broken stones. 

“Consistency is directly linked to profitability in this high fixed-cost business. We hope to increase our current production to 650 polished carats by April 2022. 

We grow, cut, polish diamonds, design and manufacture jewelry in-house that is distributed through our U.S. office. Vertical integration adds 20 percent to our bottom line.”

During the last few years of rapid growth, a short-term trading approach is prevalent in the industry, said Amish Shah, president of Altr. 

“I believe that owning the entire supply chain requires a long-term vision rather than just finance and talent. In the absence of vertically integrated players, the mid-stream segment in the lab-growth business will be under pressure as it did in the earth-mined category. 

“The fragmented supply chain of growers, distributors and retailers operating independently is inefficient. We have positioned Altr as an integrated lab-grown diamond and fine jewelry brand. Retailers are our partners, and we support them with branding and point-of-sale display material.” 

Mehta said Lumex’s skill sets are in cutting, polishing, manufacturing and wholesaling lab-grown diamond jewelry to select retailers in the U.S. as well as India. Indian retailer Orra is one of them.

Lumex.online portal’s SEARCH algorithm allows partners to search for the perfect diamond that meet their specific requirements.
Lumex.online portal’s SEARCH algorithm allows partners to search for the perfect diamond that meet their specific requirements.


“We focus on our strengths and aspire to be the best in our domain. Our partners can access our digital library Lumex.Online and access, with a single click, 3,000 options of white and colored lab-grown diamonds. A natural vivid blue or pink diamond could be priced at $1 million per carat while its lab-grown diamond counterpart is available at a fraction of its cost,” he said. 

While Goldiam, Altr and Lumex are integrating their upstream and midstream operations, companies like Renaissance Global and Orra have adopted a D2C direct-to-consumer approach.

SEEPZ Mumbai-headquartered Renaissance has taken a digital-only route to launch its exclusive lab-grown diamond jewelry portal for the millennial consumer.

With three exclusive LGD stores in Mumbai, Pune and Bangalore up and running, Divaa enjoys a prime mover advantage in the Indian market.
With three exclusive LGD stores in Mumbai, Pune and Bangalore up and running, Divaa enjoys a prime mover advantage in the Indian market.
Orra’s sub-brand, Divaa, is among the first companies in the world to launch a network of exclusive lab-grown diamond jewelry boutiques. Its online portal gives Divaa an omnichannel presence.

Experts expect that the current growth phase will be followed by price stabilization leading to consolidation, mergers and acquisitions in the industry.

Note: This story was completed for publication in the special India Diamond Report newsletter prior to Russia’s invasion of Ukraine and the U.S.’s subsequent ban on Russian diamonds on March 11.
Anil PrabhakarAnil Prabhakar is an industry analyst, journalist and consultant associated with the Jewelry and watch industries.

The Latest

IndependentsDec 07, 2022
How Daniel’s Jewelers Has Lasted 70+ Holiday Seasons

In a Q&A, CEO David Sherwood shares some company history, the secret to success during the busiest time of year, and more.

TrendsDec 07, 2022
Amanda’s Style File: December Blues

Jewelers of America’s Amanda Gizzi spotlights her favorite turquoise, tanzanite, and zircon December birthstone jewelry.

IndependentsDec 07, 2022
The Radiance Lands at Marissa Collections

The retailer is now selling the 13 diamond jewelry capsule collections created by BIPOC designers on its website.

Brought to you by
How To Buy Colored Gemstones

Give your customers the full gemstone buying experience by using the 6C's.

AuctionsDec 07, 2022
Christie’s Magnificent Jewels Auction Totals Nearly $59M in New York

After a 13-carat pink diamond was pulled ahead of the sale, blue and colorless diamonds reigned supreme.

Weekly QuizDec 01, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
FinancialsDec 06, 2022
Signet Anticipates Solid Holiday Season, Raises Guidance

The jewelry giant posted a decline in same-store sales in the third quarter but is gearing up for a season of growth.

TrendsDec 06, 2022
Pantone’s 2023 Color of the Year Is A Lot Like Rubellite, Spinel, Ruby

“Viva Magenta” easily finds its colored gemstone counterparts.

Brought to you by
Knowledge and Skills for Today’s Hot Topics

From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.

AuctionsDec 06, 2022
Jewels from the Sunken ‘Ship of Gold’ Smash Auction Estimates

Holabird Western Americana Collections offered hundreds of treasures recovered from the S.S. Central America in its Dec. 3 sale.

ColumnistsDec 06, 2022
The Smart Lab: 6 Holiday Email Marketing Strategies To Boost Sales

From creating catchy subject lines to retargeting abandoned carts, Emmanuel Raheb has a half-dozen pieces of email marketing advice.

IndependentsDec 06, 2022
CD Peacock Names VP of Client Engagement, Experience

Qi Holtzman is a member of the second generation to run the family-owned Chicago area jeweler.

IndependentsDec 05, 2022
Holocaust Survivor and Jeffrey Mann Jewelers Matriarch Rena Mann Dies

Mann, who opened the Ohio jewelry store with her husband and son in 1984, was 95.

TechnologyDec 05, 2022
Timex Ticks into the Metaverse with Bored Ape Yacht Club

The watch brand will create 500 custom timepieces for holders of Bored Ape Yacht Club NFTs.

EditorsDec 05, 2022
Meet Jewelry’s First TikTok Star

When it comes to translating luxury into the social media platform’s approachable style, JewelsWithJules has cracked the code.

Events & AwardsDec 05, 2022
WJA Foundation Awards Nearly $60K in Scholarships for 2022-2023

Scholarship winners received awards in six different categories.

SourcingDec 02, 2022
Alrosa CEO Sergey Ivanov to Step Down, Report Says

According to Russian news sources, the sanctioned head of the diamond company is leaving to take a job with an investment group.

SourcingDec 02, 2022
Lucapa Sells 170-Carat Pink Diamond Unearthed This Summer

Said to be the largest pink diamond found in hundreds of years, “The Lulo Rose” was sold for an undisclosed sum.

AuctionsDec 02, 2022
Here’s How 2 Royal Jewels Performed at Auction in Denmark

A princess’s tiara fell within its pre-sale estimate while an Art Deco bracelet from a queen doubled it.

CollectionsDec 02, 2022
Piece of the Week: Foundrae’s Chain

A closer look at the bold links reveals a subtle, surprising detail.

Supplier BulletinDec 01, 2022
Take Your Jewelry Design Process Digital with the GIA Alumni Collective™

Sponsored by GIA Alumni Collective™

WatchesDec 01, 2022
Rolex to Certify Pre-Owned Watches

Retailers within its official distribution network will be able to sell the authenticated timepieces.

CollectionsDec 01, 2022
Kendra Scott’s New Collection is for Barbie Girls

The capsule collection combines the brand’s classic styles with Barbie’s signature pink color.

AuctionsDec 01, 2022
13-Carat Pink Diamond Withdrawn From Christie’s Auction

The auction house is not offering any details on why the fancy vivid pink stone was pulled from its upcoming “Magnificent Jewels” sale.

SourcingDec 01, 2022
Nomad’s Is Selling Its Stones to Raise Money for Ukraine Again

In the spirit of an advent calendar, “Gems to Help Ukraine” will sell a stone a day through Dec. 24 on the Nomad’s Instagram account.

GradingDec 01, 2022
PhotoScribe Granted Patent for Method that Verifies a Stone’s Identification

The secure mark combines an overt mark with a covert data set to provide assurance on a gem.

SurveysNov 30, 2022
5 Things Retailers Should Know About the Start to the Holiday Season

Plus, what a potential rail strike would mean for retailers.

WatchesNov 30, 2022
Watchfinder & Co. Will Launch a Marketplace Next Year

It will provide a place for select luxury watch retailers to sell their stock.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy