The Aditya Birla Group on Tuesday said that it has entered into jewellery retail business with an investment of Rs 5,000 crore. This marks the conglomerate’s third major venture into a new business within the past two years, following its expansion into paints and B2B e-commerce for building materials.
The conglomerate revealed that the new jewellery retail business will be established under a new venture called ‘Novel Jewels,’ The focus will be on developing large-format jewellery retail stores across India, featuring in-house jewellery brands.
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. 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, Birla added.
India’s gems and jewellery market contributes approximately 7 per cent to the gross domestic product (GDP). The jewellery market is projected to grow to approximately USD 90 billion by 2025.
In November 2022, according to a media report Aditya Birla Group was creating a separate business venture for branded jewellery, with the aim of directly competing with the Tata Group’s Tanishq.
The Aditya Birla Group, valued at USD 60 billion is comprised of flagship companies such as Grasim Industries, Hindalco, Aditya Birla Fashion and Retail, and Aditya Birla Capital, among others. The conglomerate employs approximately 140,000 individuals.
In June, Aditya Birla Ventures, the Group’s venture capital arm, participated in a fundraiser for GIVA, a startup focused on silver jewellery. The company raised Series B funding and expressed confidence in the significant growth potential of silver jewellery, both online and offline.
Aditya Birla Fashion and Retail (ABFRL), a subsidiary of the Aditya Birla Group reported revenue of Rs 8,136 crore as of 31 March 2022. The fashion brands and retail formats operated by ABFRL span 3,487 stores and over 30,000 multi-brand outlets.
At the company’s AGM, Birla stated that their projected revenue of Rs 21,000 crore for the year 2026 is expected to surpass that target, setting even higher milestones for the business moving forward.