Aditya Birla Group to enter retail jewellery business, invested 5000 crores.
Aditya Birla Group: A new venture, named Novel Jewels Ltd, will house the jewellery business that will build large retail stores across India with in-house brands, the group said in a statement. Leading business conglomerate Aditya Birla Group on Tuesday said it is foraying into the branded jewellery retail business with an investment of Rs 5,000 crore.
According to a statement from the Aditya Birla Group, the new company, Novel Jewels, will construct large-format, unique jewels retail outlets all throughout India with its own jewellery brands.
Consumers who are discriminating and aspirational are gravitating more towards high-end, bespoke jewellery thanks to rising disposable money. This project will benefit from the Aditya Birla Group’s in-depth knowledge of lifestyle retail and sophisticated comprehension of customer preferences,” he added.
The company aims to tap the growing demand for design-led, bespoke, and high-quality jewellery in the country. With this, Aditya Birla Group will compete with the leading business houses such as Tata group, which is a leading branded jewellery retailer operating in the segments with brands such as Tanishq.
In addition, the Mukesh Ambani-led Reliance Industries business, which is handled by the group’s retail division, has a presence in the market through Reliance Jewels.
Aditya Birla Group to enter B2B gold jewellery business.
After paints and B2B e-commerce for building products, branded jewellery retail is the Aditya Birla Group’s third significant entry into a new industry in the past two years, it was said. A newly hired leadership team with retail and category knowledge will run the branded jewellery retail operation.
By developing a national brand with distinctive designs and a strong regional flavour, Novel Jewels will work to enhance the customer experience, the company stated. The gems and jewellery industry in India makes up about 7% of the country’s GDP. By 2025, it is anticipated that the jewellery market would increase to USD 90 billion.
According to firm chairman Kumar Mangalam Birla, “discerning and aspirational consumers are leaning more towards design-led, bespoke, and high-quality jewellery with rising disposable income.” According to the Aditya Birla Group, the market for gems and jewellery in India currently accounts for around 7% of the country’s GDP and is expected to reach $90 billion by 2025.
Foreign investors have also been interested in the jewellery business. According to Reuters, Singapore’s Temasek Holdings was mulling a $100 million investment for a 20% interest in Indian jewellery maker BlueStone.
Aditya Birla Group invested ₹5,000 crore in branded jewellery retail business.
Aditya Birla Group on Tuesday announced it would enter branded jewellery retail business with an investment of ₹5,000 crore. The new business, named ‘Novel Jewels’, will build large-format exclusive jewellery retail stores across India, the company said. In the last two years, the group has also made entry into paints and B2B building materials segments.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “Aditya Birla Group’s foray into branded jewellery retail marks a pivotal moment in our storied legacy of building businesses underpinned on trust.”
He added that this foray is a “strategic portfolio choice” that allows the group to tap into new growth engines and expand presence in the consumer landscape.
“With rising disposable income, discerning and aspirational consumers are leaning more towards design-led, bespoke, and high-quality jewellery. This venture will capitalize on Aditya Birla Group’s deep expertise in lifestyle retail and nuanced understanding of consumer preferences,” Birla added.
The retail venture will be operated by a newly recruited leadership team with deep retail and category expertise.
India’s gems and jewellery market contributes approximately 7 percent to the GDP. The jewellery market is projected to grow to $90 billion by 2025.
Amidst this rapid growth, a steady transition from an unorganized to an organized sector is being observed. The group’s timely entry is set to embellish this dynamic landscape, offering Indian consumers a diverse array of jewellery, the release added.
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