Entrepreneurship
“Some of our skilled Ratna kalakars (artisans) who have received formal education only till fourth standard earn as much as Rs. 4 lakhs per month. This indicates the enormous potential of the LGD industry in employment generation and wealth creation” …. Mukesh Patel, CMD Greenlab LLP.
Greenlab Diamonds LLP is the world’s largest lab-grown Diamond Cultivator. Driven by 2000 employees with 1000 reactors, it has established itself as a pioneer in the diamond industry. Constantly striving to explore new aspects of technology and innovation. Under the dynamic leadership of their Chairman and Managing Director, Mukesh Patel the Green Lab Diamonds LLP is setting new global benchmarks making India proud. At its core Greenlab Diamonds LLP is a humane organization Promoting sustainable luxury that nurtures people and the planet. It was recently in the news for cultivating and crafting the 7.5 Carat diamond that our PM Shri Narendra Modi gifted to the first lady of United States (FLOTUS), Jill Biden. Anil Prabhakar recently met the entire management team to decode the secret of their success.
Mukesh Patel the chairman of Greenlab Diamonds, the world’s leading cultivator of lab-grown diamonds is a second generation diamantaire entrepreneur. He took over his father Manji Patel’s business of diamond cutting, polishing, and trading and diversified it into many other businesses.
He set about searching the world for the finest and most innovative methods for producing lab-grown diamonds. Under his dynamic leadership, Greenlab has a head office in Surat and it an extended presence in Europe, the United Arab Emirates, Asia, and Africa, with multiple points of sale across several retail formats. He promotes responsible, ethical, social, and environmental practices across our industry. Committed to this goal, the company’s growing facility is harnessed by a 25MW solar power plant spread across 90 hectares of land, sustainably reducing costs to nature, and reducing CO2 emissions.
Due to his curiosity and willingness to learn more and evolve, he is constantly working with important people for the well-being of the people of India, Gujarat, and Surat city. He is also involved in philanthropic activities to create employment opportunities, providing health care, and promoting rural education and development.
Congratulations Mukesh bhai. Your initiative of cultivating and crafting a 7.5 carat LGD for the FLOTUS has put India and Greenlab Diamonds LLP on the world map. To begin our conversation, please share the thought process and inspiration behind making a transition from mined diamonds to lab grown diamonds.
Firstly, I would like to thank our honourable prime minister Shri Narendra bhai Modi for his Aatmanairbhar Bharat and Make in India initiatives. I was inspired by these campaigns and the opportunity for the LGD industry to bring about a positive change in the lives of our fellow countrymen.
Mined and lab diamonds have identical physical, chemical, and optical properties. There is no difference between the two. As lab grown diamonds cost a fraction of their mined counterpart, they become affordable and accessible to India’s millennials.
A diamond is a diamond whether it is mined or grown in a lab. A diamond is not an investment
LGDs are environment friendly and help in reducing the carbon footprint. Mined diamonds are imported and there is a less scope of value addition. The Indian industry has the technology to grow, cut, polish lab diamonds, and manufacture studded jewellery indigenously. This makes India self-reliant as we don’t have to depend on imports. Indian LGD industry has made rapid strides in mastering the technology to grow diamonds and is capable of fulfilling our PM’s Make in India dream, boost export and generate jobs for millions.
How did your company go about developing the technology of lab grown diamonds?
To grow diamonds in the laboratory, you need two things viz: the MPCVD reactors (machines) and the recipe (the formula). The quality of the output depends on technology, human talent, and skill. As you may be aware that the quality of mined diamonds depends on from which mine the rough has come from. The same principle applies to LGDs as well. There is no plug and play.
Our technology partner after doing research and development for ten years, has developed a home-grown technology. The MPCVD reactors as well as the recipe is developed in house.
In the initial years, the Indian industry was dependent on companies such as Seiki (Japan) or iPlas (Germany) for the CVD reactors. Over a period, as technology evolved, the Indian industry has become self-reliant. Many Indian growers like us have started assembling and fabricating the machines in India.
The increased acceptance of LGDs in the US has cannibalised the sale of mined diamonds. Moreover, the prices of lab grown diamonds have been falling continuously. This has caused confusion and uncertainty in the industry. Some industry analysts who support mined diamonds have criticized LGD industry in general and particularly the diamond growers. What is your opinion?
There are some analysts who have not been able to change with time. They are not able to read the writing on the wall. We must give the consumers due respect. It is for the consumers to decide what they want to buy. The customer is always right. As far as the falling prices are concerned, LGD is a technology driven product and decreasing prices is good for the consumer.
If you study the price pattern of mined diamonds, you will find that their prices have corrected to the tune of 40% over the past 5 years. If diamonds are rare why should the prices fall?
The boom in LGD industry has caused panic among the mined diamond fraternity. Existential crisis looms large over the industry that has resulted in people like Martin Rapaport going off track.
You have a very valid point sir. Why has the industry been following the Rapaport pricing system when the LGDs are not listed on RapNet? Is it not possible for the industry stakeholders to come together and come up with per carat pricing for LGDs? We would also like to know about the falling prices of LGDs.
Let me first address the last point about the pricing issue first. Prices of any commodity are governed by demand and supply. With new growers coming in and existing ones scaling up production, the supply increased. The trade enjoyed healthy margins. These have come down temporarily. The prices have now stabilised, and the situation is not alarming.
I fully agree that the industry should not follow RapNet. This calls for a dialog and cooperation among all the stakeholders of the industry. All good things take time, and I am sure there will be a development on this front soon.
Greenlab Diamonds LLP is an excellent example of a well-managed, family-owned business. Can you share your please share your leadership mantra for our readers?
At Greenlab diamonds we have always believed that maintaining a family business is a true team effort that develops a game plan and executes it over time. In doing so, both generations of owners and business leaders work together to maintain business momentum and continue to adjust succession planning as needed.
Ours is a growing organization my brothers Vipul, Jitesh and I belong to the second generation.
My sons Smit, Sanket and nephew Miraj (Vipul’s son) represent the third generation.
Vipul and Miraj are based at our Mubai office and the rest of us operate from Surat.
Together, we form a strong team. Everyone’s role is clearly defined. They enjoy autonomy and decision-making authority in their respective domain. All strategic initiatives and matters of common interest are discussed before taking the final decision.
India is a young country where more than 70% of the population is below 35 years of age. What is your message to the aspirants who want to make a career in this industry?
Greeenlab is a young organization. We are an equal opportunity employer. Youngsters who wish to make a career in this industry should realise that the Gem & Jewellery industry is built on the foundation of trust. Honesty, transparency, and hard work are the virtues that we look for when inducting a new team member.
Formal qualification is desirable but not essential. Sky is the limit for growth and earnings.
Our artisan team member Kurji bhai Makwana who has perfected the art of polishing mined diamonds over the last 29 years. He started polishing LGDs after work in mined diamonds reduced. He polishes 180 carats LGDs per month and earns on an average Rs. 2 lakhs per month. The 7.5 Carat diamond polished by him was selected for gifting to the first lady of the United States during PM Narendra bhai Modi’s state visit recently.
Makwana is the best example of the earning potential in the lab grown industry.
( You tube link to watch the video : https://www.youtube.com/watch?v=sb4gKwM0P5g).
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