Limelight Diamonds’ Rock-to-Retail Model To Make Lab-Grown Diamond A Mainstream Category

Lab-grown diamonds have transformed the way Indian consumers buy and wear diamond jewellery. It is no longer an optional choice but a segment that is soon becoming a mainstream jewellery choice and has led to Limelight Diamonds ‘rock-to-retail model.’

‘‘When we entered the category, lab-grown diamonds were still a relatively new segment to the Indian consumer. We saw an opportunity not merely to sell a new product, but to build an entirely new category, one that makes diamond jewellery more relevant, accessible and exciting for a much wider audience,’’ says Pooja Madhavan, Founder & Managing Director, Limelight Lab Grown Diamonds.

Brand Expansion Journey and the Role of Franchise Model

From being an early mover in the lab-grown diamond category, Limelight has today grown into one of India's leading lab-grown diamond jewellery brands, with over 80 stores in 45 cities across the country. The company has recently opened its 84th and 85th large-format standalone stores in Bhubaneswar and Cuttack.

‘‘Our vision is to build Limelight Diamonds into the most trusted and aspirational lab-grown diamond jewellery brand in India, while also taking the brand to global markets,’’ says Pooja. She further adds, ‘‘Our focus has always been on establishing lab grown diamonds as a mainstream jewellery choice, backed by strong design, quality, transparency and a premium retail experience.’’

She further emphasizes that the franchise model is an important part of the brand’s expansion strategy as jewelry is ultimately a trust-driven and locally influenced business. Strong franchise partners bring valuable knowledge of the markets, local consumer behaviour and established relationships.

‘‘For us, franchising is not simply a mechanism for adding stores. It is about building a strong network of long-term partners who can grow the category with us,’’says Pooja. ‘‘As awareness of lab-grown diamonds moves beyond the metros, we see its significant potential across Tier I, Tier II and emerging cities. The franchise model enables us to enter these markets with partners who understand the local consumer while benefiting from the strength of a national brand.’’

Limelight Diamonds brings the brand, product design, marketing, technology, training and operating ecosystem under one roof, allowing the brand to expand more efficiently, while ensuring that the consumer experiences are the same all across the markets.

Sourcing Strategy

Talking about the brand’s sourcing strategy, Pooja shares, ‘‘Limelight Diamonds is fully vertically integrated, with a ‘rock-to-retail’ model. We have control across the value chain, from CVD diamond production and processing to jewellery manufacturing and retail.

She further shares that the manufacturing ecosystem of the company gives it the ability to scale efficiently as the category grows, while maintaining the standards expected from a premium jewellery brand. The company is backed by the Bhathwari Group, one of the world's largest CVD diamond producers, and Emerald Jewel Industries, one of Asia's largest jewellery manufacturers.

Omni Channel Mode for Brand Promotion & Expansion

Limelight Diamonds’ brand promotion and expansion strategy is built around omni channel mode, creating a seamless journey between digital discovery and physical retail. The company does not look at physical and digital touchpoints as a separate entity, but rather as a complementing factor, allowing customers to discover its brand, research products and shortlist designs conveniently and effortlessly.

Sharing her views on Omni channel strategy, Pooja said, ''Consumers increasingly discover brands, research products and shortlist designs online, but many still want to see, touch and experience jewellery before making their final purchase. Therefore, we don't look at online and offline as two separate businesses. Our website and digital ecosystem are increasingly significant for product discovery, education, exploration and ultimately commerce, while our stores provide the consultation, trial and trust that remain extremely important in fine jewellery.''

As the company is increasingly expanding its retail footprint across India, Limelight Diamonds is simultaneously investing in technology, CRM and digital experiences so that a customer can move effortlessly from social media to the website to Limelight store and back online again.

‘‘The future of jewellery retail isn't online versus offline. It is about making the distinction between the two almost invisible to the customer..’’ says Pooja.

Lab-grown Diamond Market in India

According to Future Market Insights, the Indian lab-grown diamond market is currently valued at approximately USD 454 million and is projected to reach USD 1798 million by 2036, which is over 4x times than the current value. The market aims to expand at 14.8% CAGR over the next decade. The demand for lab-grown diamond is increasing due to its affordability, design flexibility, and portability.

Pooja shares that there are several factors accelerating the growth of lab-grown diamonds. She points out that the increasing awareness about the segment, along with many organised retail brands entering and expanding in this space, has led to the rapid growth of this category. She further says that even consumers are becoming far more informed about ‘what they are buying’, making this category a successful choice. 

Changing Consumer Trends

Talking about the changing consumer trend, Pooja says that consumers today are no longer buying diamonds only for weddings and important milestones but also for themselves at work, during travel, for gifting and everyday celebrations, making the addressable market significantly larger.

She highlights, ‘‘India is at a very exciting stage in the evolution of the lab-grown diamond category. The conversation has moved significantly from "What is a lab-grown diamond?" to "Why should I buy one?"

 She further says, ‘‘Consumers today can access larger, better-designed and more contemporary diamond jewellery at compelling price points, moving beyond being primarily occasion-led purchases…….This itself represents an important shift in consumer understanding about lab-grown diamond. She further says, ‘‘We believe the next phase of growth will come from normalising diamond jewellery for everyday wear.’’

Government Policies Favouring the Lab-Grown Diamond Category

Seeing the potential of the category, the Government of India has introduced many policies to propagate its demand. For instance, in 2024, the Indian Institute of Technology Madras (IIT Madras) was provided a grant of INR 242 crore over a period of 5 years to undertake research on lab-grown diamonds. In FY26, the custom duty on the import of carbon seeds, used in the processing of lab-grown diamonds, was eliminated. The government completely nullified the previous 5% Basic Customs Duty (BCD) on these seeds to lower production costs, reduce dependency on rough imports, and boost India's global competitiveness in the lab-grown diamond sector. Further, the gems and jewellery sector has been opened to allow 100% Foreign Direct Investments (FDI) to promote international investments.

Barriers for the Segment

Despite the growing awareness and adoption of the lab-grown diamond category, there is still lack of education and trust among the consumers.

Pooja highlights, ‘‘There are consumers who are aware of lab-grown diamonds but may not fully understand what they are. The questions around authenticity, quality, certification, resale and long-term value still emerges.’’ She emphasizes, ‘‘Our responsibility as a category leader is therefore to make the conversation simple and transparent.’’

She further says education alone isn't enough. In order to make this a mainstream category, consumers need confidence in the brand they are buying from. That is why physical retail presence, certified jewellery, transparent policies, exchange and buyback propositions and strong after-sales experience are important.

She says, ‘‘Trust isn't built only through one advertising campaign. It is built via every interaction a consumer has with the brand….We consistently reinforce the fact that lab-grown diamonds are real diamonds, and have the same physical, chemical and optical properties as mined diamonds; the fundamental difference is their origin.’’

Future Opportunities in the Category

The biggest white space for lab-grown diamonds is simply not just affordability, it is creating new reasons and occasions to wear diamonds.

''Traditionally, diamond jewellery in India has been heavily associated with weddings, anniversaries and significant milestones. Lab-grown diamonds give us the opportunity to expand that universe considerably,'' says Pooja.

She further highlights that there is enormous potential in lab-grown diamond jewellery, especially among younger consumers for self-purchase, gifting, workwear and fashion-led jewellery. There is also an opportunity to bring new and better design innovation into the category as consumers can experiment with larger stones and more expressive designs without the price constraints. The second major white space for this segment is brand building itself. This category needs trusted, aspirational national brands that can create desire while simultaneously educating consumers.

‘‘Our ambition is to move the category from ‘diamonds for special occasions’ to ‘diamonds for every occasion’….At Limelight Diamonds, we simply not just want to participate in the growth of lab-grown diamonds, but help shape how the category is perceived and consumed in India,’’ concludes Pooja.