Buzz of default by old Surat lab diamond maker grips market

economictimes.indiatimes.com:

diamonds, there is a growing whisper among traders in Surat that one of the oldest makers of lab-grown stones has defaulted. The deal that the firm had cut with many wealthy individuals, including professionals, real estate players, and a few farmers in the region to raise money has backfired amid a fall in the price of lab grown diamonds. The outstanding dues would be in the region of Rs 500 crore, three persons in the diamond market told ET. Under a back-to-back financing arrangement, funds were raised from several individuals to install machines that are used to manufacture man-made or lab-grown stones. The scheme, similar to a startup fundraising deal and different from regular institutional lending, rests on trust and a promise of a certain level of production and future price forecast. “With the price of lab-grown diamonds falling, particularly at the trade level more than the retail level, the firm in question is refusing to pay back…Though this is probably the first time the lab grown diamond business is facing such a situation, I don’t think it would have any repercussions on the overall market for lab-grown diamonds. In fact, it could stabilise the price a little,” said an industry person.

FMCG industry to witness 'significant growth' in FY24, says Jyothy Labs

The Surat-based firm had imported spares for assembling the machines which cost Rs 1 crore-1.5 crore. While local newspapers in Surat had reported about the company having borrowed from a cooperative bank, this could not be independently verified. “I heard that while the company may be servicing the bank loan, it is not paying individual creditors. The market is slow, but investors are attracted towards lab-grown stones due to the