Aditya Birla Group plans to invest US$ 608.1 million (Rs. 5,000 crore) in the retail sale of branded jewellery
Aditya Birla Group has mentioned that it is foraying into the branded jewellery retail business with an investment of US$ 608.1 million (Rs. 5,000 crore). The new business, Novel Jewels, would create expansive, exclusive jewels retail locations throughout India with its own jewellery brands.
The Chairman, Aditya Birla Group, Mr. Kumar Mangalam Birla mentioned that this plan is a strategic portfolio choice that allows it to look for new opportunities and expand presence in the vibrant Indian consumer landscape. He further added that with increasing disposable wealth, discerning and aspiring buyers are gravitating more towards bespoke, high-end jewellery that is designed. This business will reap the benefits of Aditya Birla Group's in-depth knowledge of lifestyle retail and sophisticated comprehension of consumer preferences.
The business wants to take advantage of the rising demand for bespoke, high-quality jewellery throughout the nation. With this, the Aditya Birla Group will face off against well-known corporations like the Tata Group, a top retailer of branded jewellery with names like Tanishq.
Reliance Industries also has a presence in the segment through Reliance Jewels, which is under the retail arm of the group. Branded jewellery retail is Aditya Birla Group’s third major foray into a new business in the last two years after paints, and B2B e-commerce for building materials.
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 US$ 90 billion.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.