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IGI  will apply traditional 4Cs grading standards to all diamonds, including LGDs

The International Gemological Institute (IGI) has publicly reaffirmed its commitment to applying traditional 4Cs grading standards to all diamonds, including laboratory-grown stones, positioning itself in direct contrast to competitor GIA’s recent policy shift toward simplified grading for lab-grown diamonds.

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The International Gemological Institute (IGI) has publicly reaffirmed its commitment to applying traditional 4Cs grading standards to all diamonds, including laboratory-grown stones, positioning itself in direct contrast to competitor GIA’s recent policy shift toward simplified grading for lab-grown diamonds.

IGI announced on July 14, 2025, that it will continue grading laboratory-grown diamonds using the established 4Cs framework (Cut, Color, Clarity, and Carat weight). The institute, which began grading lab-grown diamonds in 2005, cited the need to “prevent industry and consumer confusion” as the primary rationale for maintaining consistent grading standards across all diamond types.

This announcement comes in direct response to GIA’s June 2025 decision to transition from detailed color and clarity grading to a simplified “standard” or “premium” classification system for laboratory-grown diamonds. GIA, which began grading lab-grown stones in 2006, justified this change by arguing that the vast majority of lab-grown diamonds fall within such a narrow quality range that traditional nomenclature has become less relevant.

 IGI’s stance creates clear differentiation in the gemological services market. While GIA focuses primarily on natural diamond grading, IGI has positioned itself as the specialist for laboratory-grown stones, with lab-grown diamonds now comprising 54% of its total grading volume according to recent financial disclosures.

Industry Impact The divergent approaches between the two major grading institutes reflects broader industry tensions regarding the standardization of laboratory-grown diamond evaluation. IGI’s commitment to maintaining traditional grading standards may appeal to:

  • Retailers seeking consistent grading terminology across their inventory
  • Consumers who prefer familiar quality metrics
  • Manufacturers invested in producing higher-grade laboratory-grown stones

This policy difference highlights the evolving competitive landscape in diamond grading services. IGI’s emphasis on comprehensive grading for lab-grown stones may attract clients who view the simplified GIA approach as insufficient for their business needs.

IGI’s strategy carries both opportunities and risks. While maintaining detailed grading standards may preserve consumer confidence and industry familiarity, it also requires continued investment in specialized expertise and equipment for what GIA considers an increasingly homogeneous product category.

The industry’s response to these competing approaches will likely influence future grading standards and market dynamics. Retailers and consumers will ultimately determine whether detailed grading or simplified classification better serves their needs in the laboratory-grown diamond segment.

IGI’s decision to maintain traditional 4Cs grading for all diamonds represents a strategic bet on the continued relevance of detailed quality assessment in the laboratory-grown diamond market. This positions the institute as the primary advocate for comprehensive grading standards while creating clear market differentiation from GIA’s simplified approach. The success of this strategy will depend on industry adoption and consumer preference for detailed versus simplified grading systems.

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National News

Kalyan Jewellers to expand in non-South markets via franchise model

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Kalyan Jewellers said it will accelerate the rollout of franchise-owned company-operated (FOCO) showrooms to drive expansion in India and overseas. Nearly half its revenue now comes from franchised stores, and most new openings in FY26 will follow the capital-light FOCO model as the company focuses on improving returns and reducing debt.

Thrissur-based jewellery retailer Kalyan Jewellers plans to sharpen its focus on franchise-owned company-operated (FOCO) showrooms as it scales both in India and overseas, according to its Q2FY26 earnings investor presentation. The jeweller said future incremental expansion will be driven largely through capital-light franchise formats, aimed at improving returns and reducing balance sheet leverage.


The company, which has 174 FOCO showrooms in India as of September 30, 2025, has signed letter of intents (LOIs) for 89 new FOCO outlets to be opened in FY26. Its digital-first brand Candere will also expand primarily through the FOCO route, with 54 such showrooms already in place. Internationally, Kalyan said calibrated expansion in the Middle East and entry into the US market will similarly rely on franchise-led stores.

The shift is part of a broader strategy towards capital-efficient growth. The company aims to use 40-50% of profits to repay debt and invest in shareholder returns. Since April 2023, Kalyan has repaid Rs 6,461 crore in working capital loans in India and declared a dividend payout of over 20% for FY25.

The jeweller reported about 31% revenue growth in Q2FY26, supported by 16% same-store sales growth and continued strong new customer additions, which accounted for over 38% of sales. Nearly 49% of quarterly revenue came from franchised showrooms. Margin gains were driven by improved procurement efficiencies and operating leverage.

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