On a trip to London last month, city-based marketing executive Roohi R was gifted a single-stud earring. It was from Carat, the ‘created’ gemstone brand. “The pair is lightweight and cheap (at £144 or ₹13,000). A similar design in natural diamond would have cost over ₹4 lakh,” she says, adding, “These stones are legitimately sold in the UK, unlike in India where (most often) we don’t know what we are buying. That said, if given the choice, I’d invest in a natural diamond — lab-grown stones aren’t one-of-a-kind.”
This is the common sentiment among most Indian buyers, I find, even as De Beers, the world’s largest diamond company, ventures into the lab-grown space. Come September, pink, blue and white ‘made’ diamonds will find their way into their Lightbox Jewelry range — a selection of ‘accessibly-priced’ ($800 for a carat vs $6,000 for a natural) earrings and necklaces. The master diamantaire’s strategic move — to strengthen its diamond business — has evoked mixed responses, but will it impact our market? Apparently not.
Making the cut
According to industry analyst Paul Zimnisky’s March report, lab diamonds represent less than 10% of the output globally, despite recent developments in technology. In India, they account for just 10% of the total production, adds Suraj Shantakumar of Kirtilals, the Coimbatore-based jewellery brand famous for making the diamond-studded crown for the Tirumala Venkateswara Temple. “India hasn’t been able to create high-quality lab variants yet and the existing ones lack long-term value,” he says, stressing that while these stones are emerging as a category, it is important that customers are informed.
However, even if retailers are transparent and help buyers make an informed choice, it is the natural diamond’s aspirational value that still wins. Puja Sardar, a banker in Kolkata, says, for consumers, the scenario is murkier given the recent Nirav Modi-Mehul Choksi scam. “Right now, customers can’t spot the difference between lab-grown and natural stones. But I do see the price of natural diamonds coming down soon,” she says, adding, “Going forward, for me it’ll be GIS certified diamonds for high-value purchases.
Staying afloat
India is one of the top three consumers of diamonds — with the southern market (Chennai and Bengaluru) leading, followed by the West. “In 2017, over 2,10,000 diamonds were graded for the Forevermark tag,” says Sachin Jain, President, Forevermark India. Incidentally, the diamond brand enjoys the biggest slice of the country’s diamond market.
But currently, in the wake of recent scams, and banks tightening their grip on the trade, the industry is up in arms to tackle the looming financial stress. “Financial institutions have come down heavily on vendors, and the impact is being felt by both the big and small players,” says Sandeep Kulhali, Senior VP-Retail & Marketing (Jewellery Division), of Titan, which retails jewellery under the Tanishq brand. How then are the established players remaining unaffected? Pramod Kumar Agrawal, Chairman of The Gem & Jewellery Export Promotion Council, says that since the credit exposure to the gem and jewellery sector (under 1%) is minimal, the blow has been cushioned.
Controversies are not new to the business, says Yasir Sultan, CEO of Sultan Gems and Fine Jewellery, a two-decade-old Chennai brand known for its custom-made diamond jewellery. “The recent scams got more attention because those involved are internationally known. There is a slump for different reasons. The summer months are generally slow and now, with low lending and the prevailing uncertainty, newer brands are finding it tough,” he says.
Buyer trends
With the government taking a strong stand, quality-conscious buyers are gravitating towards larger, organised players. For three-carat solitaires and multi-purpose pieces, certification is a must for most clients. As for smaller diamonds, the jewellers’ track records matter. Companies that are integrated up to the mine are preferred as this is something wholesale retailers cannot offer, says Kirtilals’ Shantakumar. “The ‘desirability’ of diamonds has not come down. What we are seeing, instead, is buyers who are aware — there’s been a 20% increase in people demanding certified diamonds,” he adds.
- Most solitaire rings come with a pre-certified card with details on colour, clarity, cut and weight
- To evaluate your jewellery or loose stones, approach Gemological Institute of America (giaindia.in), International Gemological Institute (igiworldwide.com), Madras Gem Institute (mgionline.in), Solitaire Gem Labs (solitaire-labs.com)
Take Coimbatore-based writer Pratiksha Ramkumar who is particular that her diamonds are IGI certified. “I’ve always bought my jewellery from select chains that’ve been around for decades. Since I know where the diamonds are coming from, I’m not hesitant to buy,” says Ramkumar, who recently purchased a diamond tennis bracelet, studded bangles and a diamond-and-ruby pendant.
Reflecting the belief in a robust market is Russian major Alrosa. After expanding its base to several countries, including Israel, UAE and China, it is setting up a Mumbai office. For the largest diamond miner in the world, the demand for rough diamonds from its Indian customers remains unaffected. Last year, the Moscow-based company directly supplied rough diamonds worth $700 million to Indian companies. “Around 70% to 90% of all diamonds in the world come to India, and Alrosa accounts for about 30% of the global supply. So one can say that at least every fourth stone cut here arrives from Russia,” says Jim B Vimadalal, Director of Alrosa’s Mumbai office. So be it lab-grown diamonds or natural, it looks like our love affair with the rock will not fade out any time soon.
Point of origin
Meanwhile, back at the point source... The hushed environs of Forevermark’s International Institute of Diamond Grading and Research (IIDGR) facility, in Surat’s International Business Centre, is a sharp contrast to the busy streets of the city’s business district. As I sign in, collecting my access card and white lab coat, a tiny ‘security and safety’ card is slipped inside, ensuring the bank of CCTV cameras track my every move.
Inside the bullet-proof testing floors, a sea of white greets me — rows of men stooped over microscopes, delicately checking diamonds for the Forevermark tag, reminding me of the Oompa Loompas from Willy Wonka’s chocolate factory. But where are the women? A quick scan reveals just two, in a corner, peering into a petri dish with minute pin-sized stones. “India is the hub of the global jewellery market because of its low costs and availability of high-skilled labour,” Sachin Jain tells me.
To attain the Forevermark inscription, I learn a diamond (from a minimum of 0.1400 carat) needs to pass a 36-step process. As I tour the facility’s two floors, sprawled across 27,000 sq ft, Amitabha Das, director of operations, shows me a few — like the secure online submission process, which gives each stone its unique reference number, and the colour-coded Radio Frequency Identification (RFID) boxes they are placed in. At every stage, the stones are compared with their packing slips and bar codes, which contain all the details: cut, size, clarity, colour, etc.
