Riding on the brand value of trust, Aditya Birla Group has joined the Tatas to foray into gold jewellery retail business.
The Birla Group will invest ₹5,000 crore in the jewellery business through Novel Jewels.
Tata Group company Titan has made its mark in gold jewellery retail through its brand Tanishq.
On the other hand, Birla company Novel Jewels will build large-format exclusive jewellery retail stores across India, with in-house jewellery brands. 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.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, that the foray into branded jewellery retail is a strategic portfolio choice that taps into new growth engines and expands 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,” he said.
The branded jewellery retail venture will be operated by a newly recruited leadership team with deep retail and category expertise.
India’s gems and jewellery market contributes about 7 per cent to the GDP. The jewellery market is projected to grow to $90 billion by 2025. “Amid this rapid growth, a steady transition from an unorganised to an organised sector is being observed,” said the company.