The Aditya Birla Group on July 26 ventured into the rapidly expanding Rs 6.7 lakh crore Indian jewellery market with the launch of its in-house brand Indriya. The brand aims to secure a position among India’s top three jewellery retailers over the next 5 years with an investment of Rs 5,000 crore.
The strategic move marks another significant milestone as the group strengthens its consumer portfolio, leveraging its strong brand equity and deep market insights.
Commenting on the launch, Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “The Indian consumer is rapidly coming of age and India is perhaps the most promising consumer cohort globally. This year, we have redoubled our bet on the dynamism of the Indian consumer, by launching two major new consumer brands – in paints and jewellery. Entering the jewellery business is compelling due to the ongoing value migration from informal to formal sectors, the rising consumer preference for strong, trusted brands, and the ever-booming wedding market, all of which present substantial growth opportunities.”
Birla said that the foray is a natural extension for the Group, which has been in the fashion retail and lifestyle industry for over 20 years. “The robust competencies that we have honed in retail, design and brand management will serve as pillars for our success,” he added.
Under Novel Jewels venture, Indriya will primarily open four stores in Delhi, Indore, and Jaipur with plans to expand to over 10 cities within six months. The large format stores will feature extensive range of collections, the company said in a release. It will offer an initial assortment of 15,000 curated jewellery pieces with over 5,000 exclusive designs. New collections will be introduced every 45 days the fastest mind to market cycle in the Indian fine jewellery market, the release added.
Aditya Birla Group’s new brand will be competing in a market dominated by established players like Tata-owned Tanishq and Reliance Jewels, besides other popular brands like Kalyan jewels, Senco Gold, Joyalukkas and Malabar Gold.
Novel Jewel will be led by Dilip Gaur as the Director and Sandeep Kohli as the CEO of the company.
According to India Brand Equity Foundation (IBEF), the gems and jewellery industry 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 $ 29.61 billion with a decline in growth of 15.31 percent from 2022-23.
Meanwhile, the Union Budget 2024's surprise cut in gold customs duty triggered a dramatic market upheaval. Gold prices plummeted by over five percent in a single day, erasing around Rs 10.7 lakh crore in value. This unprecedented drop marked the sixth largest wealth erosion in Indian market history, surpassing the volatility often seen in equity markets.
In February, Aditya Birla Group entered the decorative paints business with the launch of Birla Opus brand under Grasim Industries Ltd. It aims to generate Rs 10,000 crore in gross revenue within three years of full-scale operations.