Titan Company has indicated that it may be considering an entry into the lab-grown diamond market.
During the company’s Q2 earnings call, Managing Director C.K. Venkataraman addressed analysts’ questions, leaving open the possibility that Titan could introduce lab-grown products in the future – a notable shift from its traditional focus on natural diamonds.
Signals of Strategic Exploration
When asked about Titan’s stance on lab-grown diamonds, Venkataraman replied, “Why do you think anything is stopping us from getting into [lab-grown]? We have not yet launched.” While not a definitive confirmation, the comment leaves room for speculation about potential developments in this segment.
Analysts also queried whether lab-grown products would feature under the company’s existing jewellery brands, such as the high-value Tanishq or the mid-level CaratLane chain. Venkataraman declined to specify, stating, “It is a matter of strategy that you are asking us to reveal before we actually launch anything like that.”
Context for Titan’s Stance
Titan’s comments come at a time when many jewellery brands are exploring lab-grown diamonds as a complementary product offering. However, the company’s jewellery division CEO, Ajoy Chawla, reaffirmed its commitment to natural diamonds. He highlighted Titan’s long-standing partnership with De Beers to promote natural diamond jewellery through its flagship Tanishq brand in India.
“The jewelry division of Titan continues to be a strong believer in natural diamonds and is heavily invested in it across all its brands,” Chawla said. He also pointed to extensive efforts over the last five years to ensure a fully natural supply chain with no contamination by lab-grown diamonds.
While not ruling out the possibility of lab-grown diamonds in Titan’s portfolio, Chawla framed them as better suited to fashion or accessory categories than to high-value jewellery. “At this point in time, we feel the lab-grown segment may eventually emerge as a distinct and separate segment of use cases, perhaps fashion or accessories, perhaps affordable adornment,” he noted.
Market Conditions and Performance
Titan’s Q2 results showed a 13% year-on-year increase in revenue to INR 133.42 billion, with jewellery sales contributing INR 116.47 billion. However, group profit declined by 25% to INR 7.05 billion, partly due to market uncertainties affecting demand for high-value solitaire diamonds of 1 carat and above.
Despite this, sales of jewellery featuring smaller, studded diamonds performed well. Additionally, demand for wedding jewellery increased following the Indian government’s July reduction of gold import duties from 15% to 6%. “There were many fence-sitters, which impacted the first quarter, who were waiting,” Chawla said. “Once gold prices corrected, many people came in [to buy].”
Implications for Jewellers
Titan’s consideration of lab-grown diamonds reflects a broader industry shift, with synthetics increasingly regarded as a complementary segment. For jewellers, this may offer opportunities to diversify product ranges while maintaining a clear distinction between natural and lab-grown diamonds.
