40-year-old Rohit Kanani has been in the diamond cutting and polishing business for the past 20 years. Kanani from Amreli came to Surat to earn a living and started working in a firm dealing in natural diamonds where he learned the art of cutting and polishing. For the past five years, he has been honing his skills at Green Lab with Lab Grown Diamonds (LGD). The firm came into limelight last year for making the lab-grown diamond that Prime Minister Narendra Modi gifted to US President Joe Biden’s wife, Jill Biden.
Holding a rough diamond in his hand, Kanani tells The Indian Express, “The cutting and polishing of LGDs and natural diamonds are very similar in terms of aspect, size and carats. The working charges per diamond are the same in both segments. But we have to be very careful while cutting and polishing natural diamonds. Because it is very expensive and we must always be careful to maintain the maximum yield from mined diamonds, says Kanani, an artisan cuts and polishes only one diamond a day They can, but lab-grown diamonds are easier to measure.
“In a day, we prepare diamonds in about two labs, depending on the size of the diamond, its shape and the number of facets. Thus we earn more in LGD. The result can be extreme if the natural diamond is lost by the diamond cutter. While here (in the case of LGDs), The scene is completely different – we work with free hands without stress, no stress and productivity also increases,” he explains.
While natural diamonds can take billions of years to form, it has become much easier to produce and own lab-grown diamonds. With the growth of lab-grown diamonds in the international market, several natural diamond producers in Surat have started expanding LGD production on a small scale.
Among the nearly 45,000 small and medium diamond factories in Surat, lab-grown diamonds, which were negligible about five years ago, have now grown exponentially and many natural diamond players have started lab-grown cutting and polishing units in the same factory. units.
Impact of global events
The natural diamond sector was hit hard by the start of the Russia-Ukraine war in 2022 when the United States imposed sanctions on Russian government-owned diamond distributor Alrosa in April 2022. Alrosa mines 28% of the world’s natural diamonds. Two years later, the European Union, with the support of the G7 countries, banned diamonds of Russian origin.
These developments directly affect jobs in Surat where more than seven lakh people are employed in the diamond industry. As mined diamond resources dwindled, factories in Surat either cut back to a five-day week, or cut their workers’ wages, to survive the recession.
In such a situation, synthetic diamonds came as a ray of hope with the demand for products using greener processes.
Greener pastures
Among the pioneers in growing green diamonds, Green Lab employs more than 6,500 workers and uses solar and wind energy to produce roughs. In November, the firm launched its first jewelery retail store in Delhi. It exports to America, United Kingdom, Middle East, China, Australia and other countries. Green Lab made the 7.5 carat eco-friendly synthetic diamond which was gifted to US First Lady Jill by Prime Minister Modi during his US visit in June 2023. This diamond was the theme of “75 Years of Azadi Ka Amrit Mahotsav Ko” (75 years of India). freedom).
Green Lab director Smit Patel says that this special stone was made in two months. “Before the LGD was given, US officials visited our factory and took every detail of how diamonds are made and the process used in production. The American team also visited our factory where diamonds are cut and polished,’ he says.
The firm started as a natural diamond company – founded by Manjibhai Patel, originally a diamond cutter – M. By the name of Kantilal Exports. His sons shut down the diamond business until LGD, Manjibhai’s grandson Smit came along.
A firm in Surat Diamond Bourse that produces lab-grown diamonds. (express)
“It was in 2017 when my father Mukesh Patel came across diamonds grown through the Chemical Vapor Deposition (CVD) process. Our entire family researched it; and later, we started the LGD factory in Varachha in 2018. We started importing the machinery used to produce diamonds. . Later, we started a cutting and polishing factory, and a few years later, we started diamond jewelry.”
Making synthetic diamonds
There are two processes for making synthetic diamonds – one is CVD and the other is the high pressure high temperature (HPHT) method.
The HPHT method is cheaper and more common. As the name suggests, this method requires extremely heavy presses that can produce pressures of up to 730,000 psi under extremely high temperatures (at least 1500 Celsius). Typically, graphite is used as a “diamond seed” and when subjected to these extreme conditions, a relatively inexpensive form of carbon is transformed into one of the most expensive carbon forms. It mimics the natural diamond manufacturing process.
Consumers of lab-grown diamonds and consumers of natural diamonds are different from each other. People are slowly starting to understand LGDs and mostly first time buyers are attracted towards LGDs.
Vipul Shah
National President, GJEPC
According to Smith, “Typically, LGD players are using the CVD technique – a small diamond piece is placed in a chamber where it is exposed to carbon-rich gas and extremely high temperatures. After several days, the carbon gas ionizes and sticks to the original diamond piece, causing the diamond to The size increases and creates new diamond material.
The CVD process also allows color to be added to the diamond by introducing other gases.
time change
India contributes at least 15% while China is the leader in the LGD market. In the 2023-24 budget, Finance Minister Nirmala Sitharaman announced a reduction in customs duty on diamond seeds used to produce LGD and a grant to the Indian Institute of Technology to research them.
About firms adjusting units for changing times and LGDs, Surat Diamond Association (SDA) president Jagdish Khunt says, “Surat is globally known as a cutting and polishing center for mined diamonds. The Russia-Ukraine war that has been going on for the last one-and-a-half years, Israel-Palestine Due to the war, the US embargo on Russian goods, the lack of demand for polished diamonds in the international market has caused the industry to suffer a major recession, and the European market, The slowdown in the Chinese economy, and other factors, have led to the diversification of mined diamonds into the lab-grown diamond sector over the past year and a half Yes and they also have to maintain their image in the market so that their factories don’t close down.”
Gujarat Lab Grown Diamond Association President Babubhai Vaghani further informed, “We have 1,100 registered members in Surat. More than 80% of diamond factory owners and traders involved in the natural diamond sector have started expanding their business in LGD. With the slowdown in the natural diamond sector, industry players are seeing opportunities in LGD, with no investment and the raw material being cheap and easily accessible. Seeing the rapid growth of LGD, we expect LGD to account for 50% of the Indian jewelery market in the coming years and this will also increase employment.”
According to Gems and Jewelery Export Promotion Council (GJEPC) data, total exports of LGD in October were 1.27% higher in US dollar terms (2.25% in rupee terms) compared to October 2023, with exports worth Rs 1160.7 crore. Last October was at Rs 1135.16 crore. However, it could not beat the natural demand market which was up 11.32% by USD (12.39% by Rupee) in the same month this year. .
Vipul Shah, National President of GJEPC, says, “The consumers of lab produced diamonds and the consumers of natural diamonds are different from each other. People are slowly starting to understand LGD and mostly first time buyers are attracted towards LGD. First-time buyers who can’t afford diamonds are now buying LGD jewelry. America is a major player in both natural and LGD jewelry sectors. Natural diamonds have their place because people who are looking for appreciation, for value, will always have it. People looking for fun wear or fashion wear may prefer LGD. When it comes to natural diamonds, branding is seen where people find value for money.
He adds, “There are many players involved in trading and production in the diamond industry who are doing natural and LGD together, but have separate setups in production and trading. In business, they have a separate company while in manufacturing (cutting and polishing), they have a separate setup where an entire floor of the building will be dedicated to LGD.
Shah says the LGD sector supports job demand. “There is a huge gap in the demand and supply chain in the diamond industry. As a result, people cut back on production and opened factories late (after the holidays). Due to the decrease in demand and supply, the price will fluctuate. As demand for natural diamonds is low, LGD is supplementing natural diamonds in terms of production. Both these sectors have become complementary rather than competing with each other,’ said Shah.
The skill required to polish mined and lab-produced diamonds is the same as that of machines. In both cases, the worker sits on an emery wheel to polish and finish.
Nagjeebhai Prakshika (66), owner of diamond exporter HVK International Limited and vice-chairman of Surat Diamond Exchange, says, “We have been in the diamond industry for the past 45 years, we have not seen such a downturn in our industry. whole life. In my natural diamond factory, there are more than 5,000 diamond workers. With unfavorable conditions in the natural industry, we started another LGD factory (using CVD process) with 500 diamond cutters. We export LGD and natural diamonds to USA, China, Middle East, Hong Kong, Japan etc. Currently there is a demand for LGD in the USA and the market is growing rapidly in India, as the demand comes from the North Eastern states. . We are hopeful that the demand for natural diamonds will pick up in the next three months.
‘Natural diamond raw material is more expensive than LGD. Labor charges are the same. At present we are operating a unit with 500 diamond polishers in LGD and we can increase the production in the future depending on the market condition of LGD. The production of natural diamonds has decreased by 60 percent. We are continuing production and hope that the natural diamond industry will regain the lost momentum in the next few months,” he added.