New Delhi: Aditya Birla Group, a prominent business conglomerate, announced its entry into the branded jewellery retail industry with a substantial investment of Rs 5,000 crore. The newly established venture, Novel Jewels, will establish large-format exclusive jewellery retail stores throughout India, featuring in-house jewellery brands, according to a statement from Aditya Birla Group.
This strategic decision is aimed at capitalizing on new growth opportunities and expanding the group’s presence in the thriving Indian consumer market, stated Kumar Mangalam Birla, Chairman of Aditya Birla Group. He emphasized that as disposable income increases, discerning and ambitious consumers are increasingly inclined towards design-led, customized, and high-quality jewellery. The company aims to leverage Aditya Birla Group’s extensive expertise in lifestyle retail and deep understanding of consumer preferences to cater to this demand.
Aditya Birla Group intends to tap into the rising demand for design-led, customized, and high-quality jewellery in India. In doing so, it will compete with other prominent business entities like Tata Group, renowned for its leading branded jewellery retail chain, Tanishq.
Furthermore, Reliance Industries, led by billionaire Mukesh Ambani, has also made inroads into this sector through Reliance Jewels, which is controlled by the group’s retail arm. The entry into branded jewellery retail marks Aditya Birla Group’s third major foray into new businesses in the past two years, following its ventures into paints and B2B e-commerce for building materials.
The branded jewellery retail venture will be managed by a newly recruited leadership team with extensive experience in retail and category management. Novel Jewels aims to revolutionize the customer experience by establishing a national brand with distinctive designs and a strong regional identity. The gems and jewellery market in India currently contributes around 7 percent to the country’s GDP, and it is projected to reach USD 90 billion by 2025.
In conclusion, Aditya Birla Group’s entry into the branded jewellery retail business through Novel Jewels represents a strategic move to tap into the growing demand for design-led, customized, and high-quality jewellery in India. With its deep expertise in lifestyle retail and understanding of consumer preferences, the group aims to establish a strong presence in this market and compete with other established players. The venture signifies Aditya Birla Group’s commitment to diversifying its portfolio and exploring new avenues for growth in the ever-evolving Indian consumer landscape.
