From The Desk of Rajesh Bajaj
Mined diamond in the landscape of LGD!
Probably in the year of 2006, GII held a one day seminar if LGDs are friend of foe of the mined diamond! Since 2006, LGD has remained a talk of the diamond industry town! In the mean time in the year 2007, cover story gets published in India Trade Media that said, DeBeers would be the largest players if they resolve to sale LGD diamonds.
Since those days & even today, DeBeers have not changed their attitude for mined diamonds. They are selling mined diamonds aggressively now with their Forevermark diamond brand on the back of 130 years legacy! Nobody agreed upon the Cover Story focus if DeBeers can touch LGDs, forget marketing or sales.
And…just after the decade long of time, in the Sunny days of May 2018, DeBeers announced to launch New fashion brand with LGDs! Officially they said, “De Beers Group announced the launch of a new company called Lightbox Jewelry that will begin marketing a new brand of laboratory-grown diamond jewelry under the Lightbox name in September, offering consumers high-quality, fashion jewelry designs at lower prices than existing lab-grown diamond offerings.”
Elephant entered in the LGDs untidy room! As of today we know the journey of Laboratory made diamond & up to the terminology of LGD! And at the occasion Bruce Cleaver, CEO, De Beers Group said, “Lightbox will transform the lab-grown diamond sector…”
Few people know how to grow rich forever and they are a leader by attitude! And, on the other hand there is a class or fraternity who follows such leader closely! They keep learning their every moments! I believe De Beers have offered a reason to trade LGDs too! Mined diamond is mined diamond and it’s a different class and manmade diamond is of a mass category!
De facto, being a leader of mined diamond, India was not adopting this LGDs, World’s largest bourse, BDB kept ban the entry of LGDs, Government of India provided separate HS Code for LGDs to differentiate mined & manmade diamonds, Further in the month of November 2019, the European Commission published the European Combined Nomenclature for precious stones, which introduces new customs codes for synthetic diamonds. This legislation will enter into force on January 1st, 2020.
But, big players kept following DeBeers! Since then an announcement of Light Box, many fine jewellery chains and brands ventured in to LGDs. Just in the latest BDW, BDB President said, they may allow LGDs in the boundaries of BDB…and recently Dilip bhai announced!
Recently media is citing Dilip bhai Mehta of Rosy Blue that he may jump LGD manufacturing segment sooner! Rosy Blue group has resolved after the thought process of a year! Initially their new venture is estimated to manufacture about 25K carats p.a. Yet, they are ready to foray this LGDs sparkling market!
Diamond fraternity in general know B Arunkumar, the root of Rosy Blue, had grown about a half of the century ago and on the back of skilful marketing & crystal clear principles they spread around the global diamond market with intact trust asset! As of today the group is enjoying being the largest and most trusted names in the global diamond industry.
Untill the August 2018 LGD exports of India recorded worth of Rs 83Cr and within a year the LGD export registered worth of Rs 391 Cr. Since, 2018, numbers of mined diamond manufacturers have turned to LGD manufacturing in Surat (We know the scenario of mined diamond & polished demand of last 3 years!) Dozens of big players have also commenced in to LGDs!
As of today it is estimated LGDs market India is around of 4K Cr. De facto the largest global diamond manufacturing center Surat is tired of mined diamonds’ weaknesses since long and also skilled artisans also have tired of undeclared layoff! Surat de facto is feeling quite comfortable with LGDs rough diamond!
At the juncture, Dilip Mehta is announcing is no more a strange yet his announcement would reaffirm many players to welcome LGD! Numbers of diamantaires are learning their move & try to learn them! Overall all these manufacturers of LGDs of India would look east and focus to import LGD rough from Asian countries!
De Beers had pumped US$ 94mn over four years and they announced at the juncture of announcing a launch of Light Box in 2018! With this pumping they want to ensure their subsidiary Element Six to be a capable to produce a LGD rough of 500K carats! Learn more from DeBeers!