Can Lab-Grown Diamonds & Omnichannel Route Power 39-Year Old Kalamandir’s Next Growth Engine?

Four Cs — carat, cut, colour, and clarity — have been the age-old criteria for choosing diamonds. Now, there’s another choice to make: natural diamonds, which are mined from the earth, or lab-grown diamonds, which are man-made but chemically identical.

Lab-grown diamonds made deep inroads into the Indian jewellery market riding on a shift in consumer preferences. And, five jewellers away in Kosamba, near Surat, refined their shared dream accordingly to create a brand that would be very ethnic yet utterly chic. 

That’s when Kalamandir Jewellers was born in a 200 Sq Ft outlet. Nearly 40 years on, the rise of Kalamandir in the $93.56 Bn Indian jewellery market is aided by an evolving consumer preference and an industry growth rate of 5.97% per year through 2029. 

The evolving taste of Indian consumers is led by a burgeoning middle class that is likely to reach 1 billion in strength by 2047, with an annual household disposable income in excess of INR 3.19 Lakh. 

As addressing the shift in demand runs as its axis, Kalamandir has been more agile and flexible to adapt to the constantly evolving preference of buyers, compared to legacy brands harping on traditional fashion.  

Kalamandir has introduced tailored design services, reflecting a broader industry shift towards co-created, occasion-specific jewellery. “There has also been a noticeable shift towards lightweight, everyday-wear pieces that combine elegance and practicality. We tried to introduce collections suitable for the modern-day lifestyle with a touch of tradition,” said Milan Shah, managing director, Kalamandir Jewellers. 

Kalamandir rolled out Svaraa as an omnichannel D2C brand in 2019 with an eye on the booming $299.9 Mn lab-grown diamond market, on course to reach $1.2 Bn by 2033. 

“Diamonds have become increasingly popular among Indian consumers, especially the younger generation. Additionally, Polki jewellery has carved its niche as a symbol of royal opulence,” Shah said. Kalamandir expanded its diamond and Polki collections by balancing craftsmanship and affordability through the lab-grown diamond segment.

Leveraging The Omnichannel Route 

Jewellery shopping was an entirely tactile affair and appraising each piece with their own eyes before making a choice was a common norm until two decades ago. Since then, life has changed drastically and redefined consumer behaviours. Shoppers not only accept but often laud brands that go for digital innovations like live social media showcasing and online consultations to improve engagement. 

Kalamandir designed Svaraa based on its omnichannel strategy of a strong online presence and retail outlets. The brand has six offline stores across India and seven airport outlets. 

Through its Svaraa brand, Kalamandir is tapping into the shift toward omnichannel, premium, and digitally native jewellery experiences — a trend reshaping India’s jewellery retail landscape.

The brand’s offline clientele typically consists of the 25–60 age cohort, with a strong focus towards ornate bridal adornments and festive collections, often chosen as familial investments in heirloom-quality craftsmanship. On the other hand, the digital customers tend to be younger, predominantly between 18 and 40, and display a marked proclivity for minimalist aesthetics, lightweight pieces and ethically produced lab-grown diamonds.

Svaraa differentiates itself by aligning closely with emerging consumer demands for customisation, ethical sourcing, and lightweight, everyday-wear designs, at a time when buyers increasingly seek jewellery that reflects personal stories and individuality over standardised offerings.

A Battle Of Choices: Diamond From Below Ground or From Above It

With changing lifestyles, digital influence and increased awareness about quality and sustainability of diamonds, customers today are looking out for responsible brand practices, transparency in sourcing and ethically sourced jewellery. 

For Gen Z, the ethics of their wearables is as crucial as its aesthetics, and lab-grown diamonds are free from these ethical dilemmas, human rights abuses or environmental effects. According to a recent study, lab-grown diamonds generate approximately 0.028 grams of carbon emissions per carat, more than 2 Mn times less than the 57,000 grams emitted to produce a single carat of traditionally mined diamond.

From saving massive amounts of water to reducing tonnes of energy consumption, lab-grown diamonds are being touted as the future of jewellery globally. With no compromise in either cut, carat, colour and clarity, lab-grown diamonds are also 60-70% cheaper than the traditionally mined diamonds. 

Apart from the ethical avenues of jewellery, customers expect a personalised shopping experience from a brand that can offer curated experiences and assist in making high value purchases. Readymade designs are no longer in demand as every customer wants bespoke customised jewellery that reflect their personal stories. 

Shah told Inc42 that customers are more aware than ever and want complete transparency in every jewellery transaction regarding quality, sourcing, and certification. Every piece from Svaraa accordingly comes with HUID, VIS and accreditation for lab-grown diamonds. “Building trust through authenticity is fundamental to customer loyalty, and we leave no stone unturned to ensure that at both Kalamandir and Svaraa,” Shah said. 

Svaraa’s Battle In A Crowded Lab-Grown Diamond Market

By leveraging Svaraa, Kalamandir Jewellers remains competitive in a rapidly transforming industry, according to the Svaraa chief. A parallel brand allows the group to leverage the growing potential of lab-grown diamonds without affecting the 36-year legacy of the parent brand. 

By building Svaraa as a distinct brand, Kalamandir has sought to cater to a newer audience without diluting its legacy rooted in traditional craftsmanship. “This dual approach helps us capture heritage-seeking and contemporary buyer segments without diluting our core brand identity,” Shah said. 

Kalamandir plans to expand Svaraa across the country while maintaining the brand differentiation that it has created over the years. The Svaraa CEO is very clear that the company wants to meet the growing luxury demand of Indian consumers, but without disconnecting from their roots. 

Positioned among the early adopters in India’s emerging lab-grown diamond market, Svaraa is looking to ride the sector’s projected boom through a dual play of heritage and modern design.

However, the market is becoming increasingly competitive. Svaraa faces rising competition from brands such as Fiona Diamonds, True Diamond, Solitario Lab Grown, Firefly, and Jewelbox, each building visibility across online and offline channels. 

Players like Giva and Bluestone are also entering the lab-grown segment aggressively, leveraging strong brand equity and omnichannel reach. In this increasingly crowded landscape, design innovation, authentic sourcing, and strong narrative-led branding will be critical differentiators for Svaraa to maintain its edge.

Kalamandir Jewellers ended FY25 with a revenue of INR 5,850 Cr – up from INR 3,339 Cr posted a year back – and its net profit jumped from INR 52 Cr to INR 125 Cr, underscoring the brand’s dominance in Gujarat’s traditional jewellery market. For Svaraa, the topline surged to INR 37 Cr in FY25 from INR 16.5 Cr in the previous year. 

Although it remains a modest contributor to Kalamandir’s overall topline, Svaraa’s early traction signals growing consumer appetite for lab-grown diamonds in India. As competition intensifies, scaling Svaraa’s footprint and brand equity will be critical to capturing a larger share of this fast-expanding segment.

The company’s focus on narrative-led branding and the unique expertise of fusing time-honoured aesthetics and modern design with decades of artisanal mastery sets it apart from other lab-grown diamond brands that are trying to find their ground.

The company’s focus on narrative-led branding and the unique expertise of fusing time-honoured aesthetics and modern design with decades of artisanal mastery sets it apart from other lab-grown diamond brands that are trying to find their ground.

Though definitive market trajectories will crystallise only with time, what is clear as of now is the fact that Kalamandir’s attempt to tap into an emerging accessible luxury would be an interesting journey, not only for its commercial success but also for the way it redefined the modern jewellery industry in India. 

Shah summed up the story of Kalamandir Jewellers as that of a journey starting small from Kosamba, near Surat, and expanding up to Borivali, Mumbai, and beyond. “Our story showcases our growth, values and dedication to heritage and innovation. This approach builds a deeper connection and instills pride in owning a piece of our legacy,” he said. 

[Edited By Kumar Chatterjee]