A week ago, True Diamond, an online startup which deals with lab-grown diamonds, came up with Batman-shaped ear studs for men and women. 

“The diamond is cut in the shape of the Batman logo. It was possible only because we can do such things with lab-grown diamonds. If it was a mined one, it would be disproportionately expensive since you require bigger rough to cut such a shape,” said Darayus Mehta, Co-founder and Director of True Diamond. 

Seen as a commodity with tremendous potential, lab-grown diamond (LGD) is a mined diamond seed, which is put in a reactor. Then, manufacturers mimic the temperature and pressure that is felt in the Earth’s core to grow the diamond. 

Darayus Mehta, co-founder and director of True Diamond

Darayus Mehta, co-founder and director of True Diamond

“Wonderful opportunities are unravelling. You can cut the diamond in the shape of a letter or any other shape. These opportunities are limitless,” he said.

Amazing works

One of Mehta’s partners made an entire poker set from LGD. It could have been at least 100 carats but it shows that diamonds have become a lot more playful and fun, he said.

India has turned “super-creative” with LGD and some of the works are amazing, Mehta said. 

LGDs have been there for over a decade but people took note of it only when Indian Prime Minister Narendra Modi gifted Jill Biden, wife of US President Joe Biden, these diamonds. 

“That was a trigger. Since then, there has been a 100x increase in search volumes about it. Though actual growth in LGD sales may be in single digits, the winds of change blowing is visible,” he said. 

Sector’s face set to change

The face of the industry will likely change in 3-5 years. Currently, a lot of two-carat solitaires are happening as they are more affordable. “If I spent ₹4 lakh for a one-carat solitaire, now I can get a two-carat lab-grown solitaire at a price that will be one-fourth of it. Consumption-wise, it is just a matter of time for India to catch on,” said the True Diamond co-founder. 

Mehta’s statement is in tune with the recent decision of De Beers to cut its LGD prices by 40 per cent. Currently, LGD appeals to millennials the most particularly to 30- to 45-year-olds. 

“It takes a little more convincing the older audience. But demand is coming from tier II and III cities. South India is typically a gold market but when it comes to diamonds, they want clear and quality ones,” said Mehta. 

Till LGD became popular, 80-90 per cent of all cutting and polishing was done in India before being exported. “We usually imported rough diamond, cut and polished it before shipping it out. Once the advantages of LGD were found out, the Government has been trying to ensure India owns the entire supply chain,” he said. 

Production capacity up

This will make the country the biggest player in the world for diamond manufacturing, processing and designing. “For the lab-grown diamond industry, the future is very bright at this stage,” said Mehta.

India’s LGD production capacity has increased over the last three years by 10X and the quality is better with higher clarity and colour. This has led to higher demand with prices being far lower than mined ones. 

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The LGD sector has not witnessed any slowdown and the curiosity of the consumers has evolved. “No one is asking anymore if LGD is real. Everyone understands that lab-grown diamonds are as real as mine diamonds. The queries have changed. Most brands are relatively new brands. They ask how do they trust a new brand?” he said. 

Opportunity to middle class

 The LGD is offering an opportunity to the middle class right now and “the belly of the nation” has started owning and enjoying diamonds, Mehta said. On the export front, besides the US, the Gulf is another big opportunity. 

According to reports, LGD exports are expected to witness a revival with a projected growth of 7-9 per cent to reach $1,500-1,530 million in 2024-25.  

In terms of design, India is up with the best. “The kind of work that is being done by some of the youngest students with diamonds is amazing. But what is happening with lab grown is now you can play with various shapes. You can actually create various shapes out of diamonds itself,” said the True Diamond co-founder.

With the kind of savings one is able to make, LGD will be “man’s best friend too” apart from women. 

No physical stores

True Diamond, which is totally online and incorporated in the second half of 2023, is getting orders from across the country with 50-55 per cent of its sales coming from “tier II and beyond” cities. “We see a lot of demand from Maharashtra and Delhi. We see very specific demand coming from the south,” he said.

 The startup began putting its best efforts since the beginning of this year. It is currently receiving an average order value between ₹70,000 and ₹one lakh. “We have been growing every single month without having to burn too much simply because of the way we’ve been marketing online and building this,” Mehta said.  

True Diamonds does not have any physical stores yet and sales take place through a personal consultant, who guides through the whole process through video calls. 

While serving all parts of the country, it has got queries from the Gulf and the United Kingdom, he said. 

The company also explains consumers the mathematics over the queries over the resale value. “We tell them that this is a much better investment. From one angle, you can spend, say, ₹4 lakhs and get a carat and keep that with you and hope after ten years, it would have appreciated one or 2 per cent. 

“Whereas if you were to buy a LGD, you instantly save 90 per cent. If you put the money you save in a mutual fund or a fixed deposit, you’re getting 7 per cent to 10 per cent interest. So from a financial investment, it makes absolute sense to go for LGD,” Mehta said.

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