KM Birla says new consumer bets off to flying start; paints and jewellery businesses beat targets

Aditya Birla Group's new consumer-facing businesses have had a strong start, surpassing internal targets and outperforming early expectations, Chairman Kumar Mangalam Birla told CNBC-TV18. He was speaking at the jury meet for the 21st India Business Leader Awards, which he also chaired.

Birla outlined the conglomerate’s strategic priorities in the context of its expanding consumer portfolio. Alongside the group's established fashion and lifestyle presence through Aditya Birla Fashion and Retail Ltd (ABFRL) -- which houses brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England -- the group has moved into high-potential consumer categories including paints and jewellery retail.

Sharp focus on market leadership and returns

Birla reiterated the group’s ambition of securing leading industry positions. The primary goal, he said, is "being in the top one or two in the industry that they are in,” backed by a financial framework centred on return on equity: “with a return on equity that's specifically each one's target.”

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The new launches include Grasim’s paint business under the Birla Opus brand and the jewellery retail venture branded Indriya. Birla described these as the group’s “first time with such sort of hardcore consumer brands,” complementing the group’s existing B2C platforms, including digital-first brands through TMRW.

GST cuts and festive boost lift demand

Speaking in the context of the government’s GST cuts and their potential to spur consumption, Birla said the festive period has already reflected improved demand trends. He reported that the group’s consumer businesses witnessed a “very good Diwali,” particularly in paints and jewellery.

“It’s good to see them having taken off so well,” he noted, adding that the performance has been significantly ahead of internal plans. “I think both have gone off to a great start. Much, much above targets and much better than I had expected,” Birla said.

The strong debut the consumer facing businesses comes amid the group's strategic push to build a sizeable consumer franchise alongside its established presence in manufacturing and commodity sectors.

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