Aditya Birla Group has announced its foray into the branded jewellery space with an investment of around Rs 5,000 crore and will battle it out with Titan’s Tanishq and Reliance Industries- Reliance Jewel.
The business will be housed in a new venture, “Novel Jewel”, and will open large-format exclusive stores across the country with its in-house jewellery brands, the company said in its release.
“The new venture will seek to transform customer experience by creating an aspirational national brand with unique designs and a strong regional flavour.
"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,” the firm said.
The branded jewellery retail venture will be operated by a newly-recruited leadership team with deep retail and category expertise.
The Indian gems and jewellery market contributes approximately 7 per cent to the country’s GDP and the jewellery market is expected to grow to $90 billion by 2025.
“Amid this rapid growth, a steady transition from an unorganised to an organised sector is being observed.
"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,” the group said in its release.
Kumar Mangalam Birla said in the release,”…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.”
Current market size: $75 billion
Expected market size:$90 billion by 2025