Business Desk, Delhi Magazine: After selling clothes and shoes, Aditya Birla Group has entered the retail business of branded jewelery to compete with Tata. The group is going to invest about Rs 5,000 crore for this. Aditya Birla Group has announced that this business will be done under a new venture named Novel Jewels. Birla Group will create large format exclusive jewelery retail stores across India under this business with its in-house brand. Let us tell you, Aditya Birla’s jewelery brand will start from July this year.
Aditya Birla Group, known for its diverse business portfolio spanning from fiber to financial services, has announced its foray into the branded jewelry retail sector, marking its third new business entry in the past two years. This move comes following the group’s successful ventures into B2B e-commerce for paint and building materials.
The group aims to establish a strong national brand presence in the jewelry market, competing with top jewelry players in India such as Tata’s Tanishq, Kalyan Jewelers, and Joalukkas, among others. Emphasizing the strategic timing of their entry, the group highlighted India’s growing gems and jewelry market, which currently contributes about 7 percent to the country’s GDP and is projected to reach $90 billion by 2025.
To spearhead this venture, Aditya Birla Group has assembled a newly recruited team dedicated to the branded jewelry retail segment. With India being one of the largest markets for gold jewelry globally, and the second-largest importer of gold, the group sees immense potential in catering to the evolving preferences of Indian consumers.
The company asserts that the ongoing transition from the informal to the formal sector within the jewelry market presents a favorable environment for their entry. Leveraging their expertise in delivering quality products across various sectors including metal, pulp and fiber, cement, chemical, textile, and financial services, the group is poised to offer Indian consumers jewelry with exceptional design and craftsmanship.
This strategic move aligns with Aditya Birla Group’s commitment to diversification and expansion across multiple sectors, including fashion retail, renewable energy, and trading, further solidifying its position as a key player in India’s business landscape.