Malabar Gold & Diamonds weighs entry into lab-grown diamond segment
The company is studying consumer interest in lab-grown diamonds and evaluating how best to position its offering, said M.P. Ahammed, chairman of the Kerala-headquartered group. 'We want to come in with a different proposition with a separate identity and not mix it with natural diamonds, as customers are different. We will formalize something,' he said on the sidelines of a press conference in Delhi.
Malabar has not yet set a timeline for its venture.
'Malabar is always open to understanding customer needs. Lab-grown is definitely in the market…We are still doing the research and understanding whether consumers like it. We don't want to do anything with a short-term view,' added O. Asher, managing director.
If it moves ahead, Malabar would be among the few national jewellery chains in India to enter this space. Last year, Senco Gold Ltd began piloting lab-grown diamonds under a sub-brand called Sennes.
India's overall diamond market is estimated at $6.2 billion in FY25, with lab-grown diamonds accounting for just $0.4 billion, according to Wazir Advisors. Both segments are expected to grow, with natural diamonds projected to reach $8.6 billion and lab-grown $0.6 billion by FY28.
While India and China have emerged as major producers of lab-grown diamonds, retail adoption in both markets has been slow, executives said. Lab-grown diamonds are typically priced at a significant discount to natural ones and have found takers among a mix of jewellery startups and traditional family-run jewellers looking to diversify.
Malabar, which primarily caters to the wedding segment with gold jewellery as its mainstay, also retails solitaires and engagement rings. The company operates over 390 stores across 13 countries and reported an annual turnover of $6.2 billion calendar year 2024.
The company is also responding to the impact of high gold prices, which have weighed on consumer demand. In April, gold touched a high of ₹ 96,875 per 10 grams, prompting a visible correction in volumes, as per industry executives.
'Consumers with a budget of ₹ 1 lakh cannot increase their spending, so we have seen a correction in volumes,' Asher said. 'We are trying to take more market share by coming up with different programmes and categories of products. We are also offering jewellery in various carats.'
'Due to a jump in gold prices, consumers with a budget of Rs1 lakh cannot increase their budget, so we have seen a correction in volumes. What we are able to do—we are trying to take more market share by coming up with different programs and different categories of products. We are also coming in various carats (of gold). So it's a different business plan we are coming up with so consumers can still afford gold jewellery," he said.
Malabar plans to introduce more 18-carat and 14-carat designs to offer value-conscious customers more options, mirroring a shift seen across the organised jewellery sector.
'We are trying to explore a little bit in 18 karat,' Asher added. 'We have come up with various innovations to reduce the budget without reducing the look.'
The company aims to open at least 50 new stores in India this fiscal as it expands its retail footprint.
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