Surat: The lab-grown diamond (LGD) making units here are sniffing an opportunity to increase their business with the US’s biggest LGD-making firm filing for bankruptcy.
According to a bulletin issued by the Gem and Jewellery Export Promotion Council (GJEPC), Washington-based WD Lab-Grown Diamonds has US $44 million in liabilities, while its assets amounted to US $3 million. Established in 2008, the company has played a key role in the growth of the LGD industry in the US.
In 2020, it sued six LGD companies over patents and later issued sublicenses to at least three leading Indian diamond companies in 2021. WD-LGD is one of the pioneering technology companies in developing the Chemical Vapor Deposition type of LGD.
The Indian diamond companies holding sublicense for CVD manufacturing have operations in Mumbai and Surat. It should also be noted that a US arm of city’s largest LGD grower won a lawsuit against WD-LGD in 2021.
“From the current status, it looks like city-based LGD manufacturers will benefit from this situation if a competitor goes out of business,” said Dinesh Navadiya, ex-regional chairman, GJEPC.
Prices of LGD, which are almost 80% cheaper than natural diamonds, have significantly dropped in the past year. Polished LGD exports from India grew by 28% to $1,680 million in 2022-23 compared to $1,314 million in the previous year.
Vijay Mangukiya, regional chairman, GJEPC, “Top US companies bought rough from different countries and got it polished in India. The dropping prices of LGD could be a reason behind a leading player getting affected. But its impact in India would not be major as companies here are into growing LGD for jewellery making.”
