Editor’s Note
This article highlights the strategic rationale behind IGI’s acquisition of AGL, emphasizing India’s established role as a cutting hub and the critical importance of direct access to the US consumer market.
Strategic Drivers: India’s Cutting Hub and US Market Access
Tehmasp Printer, Managing Director and CEO of International Gemmological Institute India (IGI), stated that India’s dominance in coloured gemstone cutting, centered in Jaipur, and direct access to the world’s largest consumer market in the US are the real strategic drivers behind IGI’s acquisition of American Gemological Laboratories (AGL).
“You have to understand, 90% or mostly, most of the gemstones are cut and polished in Jaipur. And Jaipur is the global cutting centre of the world… just like diamonds are cut and polished in Surat… so now diamonds and colour stones, the cutting and polishing happens in India. So that is the reason why we have acquired AGL, which is the top-most colour stone laboratory in the US. And the US is the largest colour stone market in the world.”
Core of the Deal: Combining Scale with Specialist Capabilities
At the core of the deal is IGI’s entry into high-end coloured gemstone certification by combining its scale with AGL’s specialist capabilities.
“The acquisition of AGL means a lot to IGI from the perspective of colour gemstones. IGI has extreme proficiency in diamond grading, the forces and the origin and the treatments, etc. In colour stones, AGL in the US is rated at the top in the US for the high end luxury gemstones, and that is the reason why we have acquired AGL for their expertise in certifying gemstones.”
On how IGI plans to scale AGL’s franchise globally, he added:
“AGL is known for its assessment of gemstones, and IGI has the scalability. So together is a win-win situation where we will take AGL globally.”
Ongoing Expansion and Industry Outlook
Printer said the acquisition does not mark the end of IGI’s expansion roadmap.
“Still, we have a long way to go… but we are always doing due diligence to see how we expand our map on the gems and jewellery sector of the world.”
On broader trade sentiment and industry outlook, he said he agreed with the view expressed by the Gems and Jewellery Export Promotion Council (GJEPC) that trade should continue to improve.
Role in Lab-Grown Diamonds and Market Regulation
Commenting on lab-grown diamonds and IGI’s role as a market regulator, Printer said:
“The lab-grown diamonds, the capacity expansion is constantly being done, and we are upgrading our facilities and infrastructure to match the capacity upgrade… so overall, the lab-grown volumes are growing very fast, and we want to be the guys to regulate the diamond sector. We are an independent third-party certifying body… Same way. Now, with AGL in our portfolio, we will give you the exact clarification which is needed for a gemstone.”
