New Delhi: Aditya Birla Group is set to foray into the branded jewellery retail business with an investment of ₹5,000 crore, competing with heavyweights such as Titan Company and Kalyan Jewellers.
The group’s new venture “Novel Jewels Ltd” will have large-format exclusive jewellery retail stores across India, with in-house jewellery brands, the group said in a statement on Tuesday.
This is the group’s third major foray into a new business in the last two years after paints, and B2B e-commerce for building materials. Additionally, it also runs a large fashion retail business, under Aditya Birla Fashion and Retail Ltd., that sells men’s and women’s clothing, accessories and footwear.
“Aditya Birla Group’s foray into branded jewellery retail marks a pivotal moment in our storied legacy of building businesses underpinned on trust. This foray is a strategic portfolio choice that allows us to tap into new growth engines and expand our presence in the vibrant Indian consumer landscape. With rising disposable income, discerning and aspirational consumers are leaning more towards design-led, bespoke, and high-quality jewellery. This venture will capitalise on Aditya Birla Group’s deep expertise in lifestyle retail and nuanced understanding of consumer preferences,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
The branded jewellery retail venture will be operated by a newly recruited leadership team, the group said.
India’s gems and jewellery market contributes approximately 7% to the country’s GDP. India’s jewellery market is projected to grow to $90 billion by 2025. India is among the largest markets for gold jewellery globally making it an attractive market for investors.
Amid this rapid growth, there is a steady transition from an unorganized to an organized sector, the company said. The group’s timely entry is set to embellish this dynamic landscape, offering Indian consumers a diverse array of meticulously crafted and intricately designed jewellery.
Aditya Birla Group operates in a wide range of sectors, including metals, pulp and fibre, cement, chemicals, textiles, carbon black, financial services, fashion retail, renewable energy, and trading, among others.
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Updated: 06 Jun 2023, 12:24 PM IST