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News: Budget 2023-24 has proposed to enhance indigenous production for lab grown diamonds and reduce import dependency and provide financial support to be to IITs for research and development
Views: The measure aims at creation of a manufacturing ecosystem for lab grown diamonds. From our coverage universe we expect it to be beneficial for Titan Company as improved availability of lab grown diamonds within India would provide a thrust to Titan’s ambitions in the segment. Lab grown diamonds is a fast growing segment which is gaining consumer acceptance across the globe owing to its similar and standardised characteristics like natural diamonds but at a significantly lower price ( @ 50-60% discount to natural diamond price). Last year Titan had picked up a 17.5% stake in Stamford, Connecticut-based lab-grown diamond maker Great Heights Inc. for an estimated $20 million through its subsidiary TCL North America Inc to gain insights into the segment
Impact: Neutral