The jewellery retail market, being dominated by the Ambanis and the Tatas, is set to witness intense competition with the Aditya Birla Group now entering the segment.
Aditya Birla Group, one of India's leading business conglomerates, has planned an investment of Rs 5,000 crore for this venture, under the name Novel Jewels.
Led by Kumar Mangalam Birla, the Aditya Birla Group -- known for its diverse business portfolio ranging from telecom to apparel -- launched its new retail jewelry brand, Indriya, on Friday.
The group's major companies include UltraTech, the largest cement company in India, and Vodafone Idea (Vi), a leading telecom operator. The group also has a strong presence in financial services and fashion.
The Aditya Birla Group has entered the branded jewelry retail business at a time when branded jewellery is becoming more attractive compared to unbranded jewellery. A significant portion of customers now prefer buying branded jewellery over traditional jeweler shops. Brands such as Tata's Tanishq, Reliance Jewels, Kalyan Jewellers, Joyalukkas, and Malabar are already present in this market segment.
The jewellery market in India is estimated to be worth around Rs 6.7 lakh crore. During the launch of the jewelry brand Indriya, Kumar Mangalam Birla stated that the goal is to make this brand one of the top three jewellry brands in the country within the next five years. Kumar Mangalam Birla is currently the Chairman of the Aditya Birla Group. Around 20% of the group's revenue comes from consumer businesses. Birla expects this figure to exceed 25% and reach close to $25 billion in the next five years.
