Goldiam's betting big on lab diamonds. But are there buyers?

The chances of a copy-cat being better than the original are low but never zero. Case in point: Diamonds. Naturally-mined diamonds are quickly being outpaced by their low-cost counterparts—lab-grown diamonds (LGDs). These man-made gems, which share nearly identical physical properties with natural diamonds yet cost half as much or even less, have gained remarkable traction in recent years. LGD market share in the US has soared from just 11 per cent in February 2020 to over 50 per cent by February 2024, as per market analytics firm Tenoris. Goldiam International, a diamond exporter primarily to the US, has swiftly shifted gears over the years to capitalise on this consumer trend. Originally a natural diamond jewellery exporter, the company now derives 80 per cent of its revenue from LGDs (as of Q3 FY25), up from just 58 per cent a year ago. Meanwhile, natural diamonds now make up only half the sales they did last year. Goldiam is now eyeing India as the next big frontier, with an ambitious plan to become the largest organised retailer of LGDs through its ORIGEM brand. After opening four stores in Mumbai, the company plans to scale up to 200 stores over the next four to five years. The goal is ambitious. The company expects breakeven for each store at Rs 30 lakh