The Indian jewellery retail market, traditionally led by the Ambanis and the Tatas, is about to face heightened competition with the Aditya Birla Group’s latest venture into the segment.
Major Investment and New Brand Launch
The Aditya Birla Group, a prominent Indian business conglomerate, is set to make a substantial investment of Rs 5,000 crore in the jewellery sector. This new initiative will be launched under the brand name Novel Jewels. The group, under the leadership of Kumar Mangalam Birla, is expanding its diverse portfolio, which includes industries ranging from telecom to apparel, with this latest retail venture.
Existing Business Footprint
The Aditya Birla Group is renowned for its significant presence in various sectors. Its major subsidiaries include UltraTech Cement, India’s largest cement company, and Vodafone Idea (Vi), a leading telecom operator. The conglomerate also has a strong foothold in financial services and fashion.
Shifting Preferences in the Jewellery Market
The timing of Aditya Birla Group’s entry into the branded jewellery market is strategic, as there is a growing shift towards branded jewellery over unbranded alternatives. Consumers are increasingly leaning towards well-known brands rather than traditional jewellers. The market is already populated with established players such as Tata’s Tanishq, Reliance Jewels, Kalyan Jewellers, Joyalukkas, and Malabar.
Market Potential and Future Goals
The Indian jewellery market is valued at approximately Rs 6.7 lakh crore. During the launch of Indriya, the new jewellery brand from the Aditya Birla Group, Kumar Mangalam Birla announced the ambitious goal of making Indriya one of the top three jewellery brands in India within the next five years. As the Chairman of the Aditya Birla Group, Birla highlighted that currently around 20% of the group’s revenue comes from consumer businesses. He expects this share to increase to over 25%, reaching close to $25 billion in the next five years.
