India's Titan Company, known for its commitment to natural diamonds, might be considering a foray into the lab-grown diamond market. Recent remarks by Titan’s managing director, C.K. Venkataraman, during an analyst call discussing the company's second-quarter results sparked speculation about a potential shift in strategy.
Historically, Titan has firmly believed that its customers prefer natural diamonds, maintaining a fully mined supply chain. However, when asked by an analyst what prevented the company from entering the lab-grown market, Venkataraman's response took many by surprise: "Why do you think anything is stopping us from getting into [lab-grown]? We have not yet launched."
Although this comment does not confirm any concrete plans, the phrase "not yet launched" hints that such a move might be on the table for the future.
Speculation Surrounding Lab-Grown Branding
An additional question was raised about which Titan brand might carry a lab-grown diamond product line, should the company choose to enter the market. Would it be under the premium Tanishq brand or the more accessible CaratLane stores?
Venkataraman remained tight-lipped, stating, "We wouldn’t like to share anything about our strategy, whatever that is, when it is going to be on this. If you really think about it, it is a matter of strategy that you are asking us to reveal before we actually launch anything like that."
This conversation followed a related development from another Titan group entity, Trent, which recently launched a lab-grown jewelry pilot. Trent operates as a lifestyle fashion retailer and is independent of Titan's dedicated jewelry brands. Moreover, Titan has recently collaborated with De Beers to promote natural diamonds in India, emphasizing its ongoing commitment to natural gems through marketing, education, and outreach initiatives.
Titan Keeps Options Open for Future Developments
When directly asked by Rapaport News whether Titan would introduce a lab-grown diamond line, Ajoy Chawla, CEO of the jewelry division, did not rule out the possibility. It also remains unclear whether a potential lab-grown product would be launched under an existing brand or a new one, similar to what Hong Kong jeweler Chow Tai Fook did.
Chawla reiterated Titan's dedication to natural diamonds, pointing out their long-term partnership with De Beers to promote Tanishq natural diamonds in India and the work done to maintain a fully natural value chain.
While emphasizing the company's ongoing focus on natural diamonds, Chawla acknowledged that lab-grown diamonds could occupy a distinct position in the jewelry market, possibly in areas such as fashion accessories or affordable jewelry. He compared it to other types of adornments like cubic zirconia, silver, and demi-fine jewelry, suggesting that the lab-grown market could eventually become its own segment, much like non-precious jewelry categories.
Other Insights from Titan's Update
Titan also provided some interesting market insights. Sales of studded jewelry featuring smaller diamonds have remained strong, despite challenges for solitaire diamonds weighing one carat or more due to price uncertainties. Furthermore, the reduction of import duties on gold by the Indian government has spurred increased demand for wedding jewelry, following a period of hesitation in the market.
Overall, Titan reported a 13% increase in revenue year-on-year to INR 133.42 billion ($1.58 billion) for the second fiscal quarter, with jewelry sales rising to INR 116.47 billion ($1.38 billion). Group profit, however, fell by 25%, coming in at INR 7.05 billion ($83.6 million).
Is Titan About to Embrace Lab-Grown?
While Titan’s recent comments don't provide a definitive answer, they hint at a potential openness to lab-grown diamonds—a significant shift for a company traditionally focused on mined gems. Whether Titan will eventually take the plunge into the lab-grown diamond market remains to be seen, but one thing is clear: the company is carefully weighing its options and watching this emerging space with great interest.