Goldiam International MD Believes Lab-Grown Gems Will Contribute 80% Towards Revenue Soon
On Nov. 7, the company had informed exchanges that its lab‐grown diamond jewellery business contributed 77% to its September quarter revenue.
Goldiam International Ltd. expects lab-grown diamonds to contribute 80% towards its revenue soon, and this will be driven by a rising demand in India and the global markets like the US.
In a conversation with NDTV Profit, Goldiam International Managing Director Anmol Bhansali said that the company’s market share had grown in the first half of the financial year 2024–25, following its foray into the lab-grown diamond space.
On Nov. 7, Goldiam International had informed the exchanges that the company’s lab‐grown diamond jewellery business contributed 77% to its September quarter revenue.
“It is a non-trivial sort of change we have seen and the demand we are seeing for lab-grown (diamonds). We believe it should stabilise around here or slowly inch towards the 80% mark and that’s where we believe the US consumer or US middle income segment will remain in terms of their consumption pattern,” he said.
Three years ago, the share of lab-grown diamonds in the revenue mix was in single digit or very low double digit, Bhansali noted.
“We believe there is a tremendous scope and great runway of growth for lab-grown diamonds in India,” the top executive said.
According to Bhansali, lab-grown diamonds are perfect for the value conscious customer, as it satisfies the Indian consumer's aspirations for larger diamonds without breaking the bank.
Commenting on the retail business in the lab-grown diamond business after Trent’s proposed entry into the segment, Bhansali said, “Personally, I welcome competition from large organised brands we look up to and have great respect for, because it gives the category a stamp of approval."
According to him, "the stamp of approval" is essential for gaining consumers' trust. "This is a category we’d like to explore. That allows us to be an option for them.”
He pointed out that when large organisations foray into the synthetic diamond space, it will lead to the education of the Indian markets about them.
“We need to educate this customer and make them aware about lab-grown diamonds. Having a large, organised competition will certainly help in that pathway,” he said.
On Thursday, shares of Goldiam International Ltd. closed 1.99% higher at Rs 320.10 apiece on the NSE, while benchmark Nifty 50 ended 0.72% lower at 23,349.9.
