R. Kirti & Co is a manufacturer, exporter and wholesaler of solitaires, loose diamonds and certified diamonds. With more than 45+ years in the industry, they have their finger on the pulse of the diamond industry.Rushabh Turakhia, Partner-R. Kirti & Co. speaks to JEWELBUZZ on various aspects of the diamond sector: challenges, opportunities, LGDs, consumer trends… and more

The geopolitical tensions, G7 sanctions, and drop in diamond demand in US, the China are major concerns for the Indian diamond industry. What in your opinion needs to be done to overcome these adverse conditions?

Yes, it does affect our market very badly, especially being the luxury segment, over the war in Russia which is one of the important sources of rough diamonds, and Israel one of the leading trading hubs of our industry. The sanctions do affect us and the livelihood of thousands who are polishing 90 percent of the diamonds of the world, especially SMEs. I am completely against the war, and would want peace across, but at the same time how much do these sanctions affect the countries at war? With so many sanctions on Russia, it’s still at it, and with America aiding Israel, the war isn’t going to stop soon. G7 holds 70 percent of the global market for diamonds, so eventually it’s going to affect the industry as a whole.  The Council needs to be more aggressive with its policy and talk with the Government or when it comes to marketing the product.  

  What is your outlook for the diamond sector- both domestic and global this year? What are the challenges, and opportunities?

The outlook for domestic is about two things, one is India is a huge market and has enough money for this industry to grow, second is the awareness and knowledge about Natural and LGD needs to be shared aggressively. Globally even with the conflicts and economic crisis, there are always buyers, even during Covid times, with very few getting married or with people saying GDP had negative growth, there was still enough demand for the industry. The challenge that our industry is going to face is about misinformation to the younger new buyers. Social media plays a major role on how we take this market ahead.

 The natural diamonds vs LGD (lab grown diamonds) debates and discussions continue. Your comments on how both segments can co-exist in the market place.

Yes, both have their place, both will run parallel, but at the same time what’s important is the knowledge needs to be shared openly. Random influencers who don’t understand diamonds, never purchased have started giving false information and affecting the buyers with half knowledge. For some small amount they would mar the industry which has  been providing livelihood to millions. Be part of industry but not by cutting down each other. State the facts, than let buyer choose, there’s market for everyone.

   Lab-grown diamonds prices continue to fall. Paul Zimnisky, leading diamond analyst, foresees jewellers scaling back their business in LGDs. In India, LGD segment is being encouraged by favourable governmentt policies and sops. Do you see the international LGD market slumping and the Indian LGD segment rising? Your comments on overall LGD scenario?

Yes LGD prices are falling, at one time they used to be 70 percent of the natural diamonds and now at 4-5 percent. Internationally they can be substituted by the lowest quality real diamonds, but not the better ones. LGD is growing but I would feel it’s like any other branded purses, shoes or clothes, like once you out of the store, don’t expect it to give you that value later on. I would call them more of an expense than an investment. Again my only emphasis is on disclosure:  giving the customer the right information.

   What are consumer trends you are observing in the solitaire segments and diamond jewellery segment, vis-à-vis designs, price points etc?

With increasing gold prices, the designers and the makers now need to work on the diamond component in the jewellery. Gone are the days when even a first time buyer could afford a small ring/pendant within the budget. But, I must say there are these die hard diamond buyers, come what may the solitaire market is run by them. At the same time would like to say how the travel and automobile industry giving a huge challenge, as one can show off on their social media where they traveling or which car they have bought but you will hardly see someone showing off a solitaire or jewellery they have purchased. The next generation wants validation, want those likes and comments, than what they actually need.

   Please comment on R Kirti & Co’s strategy, roadmap going forward.

We have away played conservatively, and with the moving market have been flexible enough to change and flow with 20-30 percent of our business, while our major business of solitaires remains intact. Yes times are not good for the industry, but being in the industry for more than 45+ years we understand the trends and phases of the same.