The Aditya Birla Group has announced its Enter into branded jewelry retail with a new brand, ‘Indriya’, proposed to be launched under its subsidiary Novel Jewels. An investment of ₹5000 crore is being planned to open the first four-store outlets across Delhi, Jaipur, Indore on July 27. The company expressed hopes that within the next six months, it would also have spread to other 11 cities.
At the launch event, Aditya Birla Group Chairman Kumar Mangalam Birla sketched out ambitious growth targets for this brand. “We intend to be amongst the top three national players in five years with a 50 per cent compound annual growth rate,” he outlined. The maze of 15,000 unique jewellery pieces crafted by 3,500 artisans across 13 cities will be refreshed; store designs will be refreshed every 45 days. The stores will also be 40 per cent larger than those of average national brands.
Novel Jewels will be led by Director Dilip Gaur and CEO Sandeep Kohli. The whole outward investment shall first go into setting up stores and inventory acquisition. Kohli mentioned that the company has further expansion plans in tier 2 and tier 3 cities, riding on the back of a recent reduction in customs duty from 15 per cent to 6 per cent, which is likely to push demand.
According to Kumar Mangalam Birla, even on an absolute basis, compared with other industries, there is tremendous potential in the Indian retail jewellery market— ₹6.7 lakh crore as of now, which is likely to be ₹11–13 lakh crore by 2030. The industry also remains highly fragmented with the local and regional players accounting for about 60% of it, and a mere 6-7% being the market share of the largest national brand.
This foray into the jewellery market comes after Aditya Birla Group’s recent forays into paints and eCommerce, wherein consumer businesses now contribute 20% to group revenue. The company expects this to increase to 25%, generating USD 25 billion in revenues in the next five years.
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Source: MoneyControl
News Desk
