Aditya Birla Group forays into branded jewellery retail business with an investment of Rs 5000 crore under a new brand name 'Indriya' on July 26.
This brand will be housed under the company Novel Jewels. The group plans to set up four stores on July 27 in Delhi, Jaipur, and Indore. They also plan to expand to 11 cities in the next six months.
The company aims to be among the top three national players in the next five years. The chairman of Aditya Birla Group, Kumar Mangalam Birla, plans to continue to grow at 50 percent CAGR in the next five years, he said on July 26 at the launch event in New Delhi.
The brand has 15000 jewellery pieces (stock keeping units) crafted by 3500 artisans in 13 cities. Birla also shared that the company aims to introduce new designs in stores every 45 days. The stores will be 40 percent larger in size than the average national brands, he added.
Novel Jewel will be led by Dilip Gaur as the Director and Sandeep Kohli as the CEO of the company.
"The retail-driven business will utilise the initial investment in setting up stores and buying inventory. We also create unique proprietary in-house designs and very few will be curated and customer experience," said Gaur.
Also Read | KM Birla announces plans to foray into jewellery retail with initial capital of Rs 5,000 cr
The company plans to expand in top cities followed by expansion in tier 2 and tier 3 cities, shared Kohli on the sidelines of the launch. With the reduction in custom duty from 15 percent to 6 percent in the budget, Gaur believes that it will give impetus to the pent-up demand and expects the positive and huge growth in consumption.
"The market size of the retail jewellery is Rs 6.7 lakh crores market size. The industry is poised to grow to Rs 11-13 lakh crores by 2030. The industry has historically been unorganised with 60% players, and few national players. The largest national brand commands only a 6-7 % market share," Birla explained the potential in the market.
According to India Brand Equity Foundation (IBEF) gems and jewellery industry of India contributes 7 percent to the country’s Gross Domestic Product (GDP). The sector contributes about 15.7 percent of India’s total merchandise exports, accounting for the third largest commodity share. During 2023-24 (until February 2024), the gems and jewellery exports reached US$ 29.61 billion with a decline in growth of 15.31 percent from 2022-23.
In the last two years, Aditya Birla Group has forayed into the paints business Birla Opus; and Birla Pivot eCommerce Business for the construction sector. "As of today, 20% of our group revenue comes from consumer business, and over 25% of our business in the next 5 years which is about $ 25 billion of revenue will come from consumer business," said Birla.
Last year June, in a company statement, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “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.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
