Diamond World (DW) May - June 2020

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DW Promotion Limelight Lab-Grown Diamonds HOW LAB GROWN CVD DIAMONDS CAN BE INDIA’s ACE CARD IN GLOBAL GEMS & JEWELLERY INDUSTRY In the time of crisis, lab-grown CVD diamonds can be India’s answer to growth and success In times when the global diamond industry had been challenged with declining natural diamond prices driven by decreased global consumption, geopolitical tensions, reduced financial aid from banking institutions, demonetisation struggles in India and a collective scale-back of production by the miners worldwide, lab grown diamonds have seem to emerge slowly as a ray of hope and establish a growing footprint in the gems and jewellery industry. 2019, particularly, was the year for labgrown diamonds. India, alone, witnessed a sharp rise in LGD exports worth $443 million which were up by 102% y/y. Even at the start of 2020, lab-grown diamond exports in India were up by 60% y/y, while natural diamond exports were down by 41% y/y. Whilst the lab-grown diamond industry had seen a significant price correction in recent years with the technology evolving and the cost of technology coming down, lab-grown diamond prices, particularly CVD diamonds, have now stabilized. In fact, CVD diamonds above 1ct saw a 29% price rise in the last quarter of 2019 driven by significant demand and limited supply. Globally, estimated at INR 13,300 Cr currently, the lab-grown diamond jewellery market is expected to rapidly rise to INR 36,000 Cr by 2023 and exceed INR 1,00,000 Cr by 2035, says a recent report by renowned analyst, Paul Zimnisky. These hefty numbers are not just what adds on to the prospect of diamonds created using the CVD technology, the major shift in consumer consumption patterns is a great contributor to the rise in demand for lab grown CVD diamonds. Millennials and Gen Z as purchasers of luxury including diamonds, are steering away from natural diamonds because of their higher environment and social costs and increasingly leaning towards sustainable luxury. As a result, consumers are now exploring real diamonds that are grown in laboratories as the new alternative for engagement rings as well everyday luxury wear as it comes with the added benefit of being ethical, affordable, sustainable and more environment-friendly product. With the largest population of Millennials in the world, India is perceived to become the largest market for lab grown diamonds in the future. 104 | may-june 2020 | DiamonD WorlD
DW Promotion India remains critical to the growth of the lab grown CVD industry A known fact is that India and China are currently the world’s largest exporters of lab grown diamonds and that India is also one of the strongest players producing or growing the lab grown diamonds. India particularly specialises in the CVD technology that exactly replicates the environment below the surface, above in a reactor and produces lab grown CVD diamonds – certified as the purest type of diamonds (Type IIa). On the other hand, China produces lab grown HPHT diamonds that are created using graphite and a molten metal influx not resulting in the purest type of diamonds (NOT CLASSIFIED as Type IIa). What is interesting to know is that in the current lab grown polished diamond production of 2 million carats, over 90% of it is under 0.18cts, majority of which are Chinese diamonds. Whilst, so far China has progressed with significant rise in volumes of star melee diamonds, bulk production of higher quality and bigger solitaires (0.30cts and above) with the HPHT technology still remains a challenge. India, whilst may not have achieved the same volumes yet, with its homegrown scalable CVD technology has certainly surpassed China in terms of producing superior quality (Type IIa) and bigger solitaires. As the economy slowly opens post lockdown, the implementation of several financial measures adopted by the Indian government and the RBI to boost lending and increase liquidity is likely to revive the economy faster than anticipated. In such times of recovery, industries that focus on the domestic market and homegrown “MakeInIndia” products are likely to have a speedy recovery compared to industries that have dependency on foreign markets. Given the scalable production of lab grown CVD diamonds occurring in India, a robust strategy with a visionary approach and government assistance in place can help India make bigger strides in offering this choice to consumers domestically but also capture a bigger share of the world market for lab grown diamonds. With domestic production, cutting, polishing and manufacturing of CVD diamonds and our existing abilities of domestically designing and crafting to the sensibilities of the overseas market, the country is poised to capture the opportunity locally as well as be the biggest foreign exchange earner going forward Pooja Sheth, MD & Founder of Limelight Diamonds, the first luxury brand in India offering lab grown CVD diamond jewellery 5 reasons why CVD diamonds can be INDIA’s golden opportunity for revival post crisis 1. Opening up a new segment of AFFORDABLE LUXURY Majority of the polished natural diamonds are currently consumed by US and China, as per the latest DeBeers Diamond Insight Report, 2019. India only consumes 5% of the polished natural diamonds. This is largely a reflection of majority of the Indian population not being able to afford natural diamonds. Lab grown CVD diamonds, with its affordable price points, is an opportunity for every jewellery retailer to offer a new choice to consumers who have always aspired to purchase a diamond. Source: De Beers Diamond Insight Report, 2019 DiamonD WorlD | may-june 2020 | 105
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FOunDER: Late Vidya Vinod Kala Alok
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editorial Sparkle of Hope No pandem
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Round & About POLISHED DIAMONDS 3ct
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Lab & TechnoLogy Round & About GIA
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In MeMorIaM Remembering a Gentleman
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Page 71 and 72: Cover Story The Carpe Diem mentalit
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Page 84 and 85: SPECIAL REPORT Ban on rough diamond
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Page 96 and 97: Special Feature Cartier Gem-Set, Di
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Page 114 and 115: GIA AdvertorIAl Stone Talk Ruby Rar
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Diamond World (DW) May - June 2020

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