After making a splash in the paint business last month, the Aditya Birla Group plans to venture into the gold jewellery business with the official launch of Novel Jewels in June.
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. The Group will invest ₹5,000 crore in the pan-India branded jewellery business.
Aditya Birla Group company Grasim Industries inaugurated three of the six paint manufacturing plants in Tamil Nadu, Haryana and Punjab, aiming to generate ₹10,000 crore in revenue and turn profitable in the next three years.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, said the company plans to launch the jewellery business in June and will build large-format exclusive jewellery retail stores across India featuring in-house jewellery brands.
The venture will transform the customer experience by creating an aspirational national brand with unique designs and a strong regional flavour, he said on the sidelines at the recent event to launch the decorative paints business Opus.
On the sudden focus on consumer-facing business, Birla said it is a strategic shift as the Group wants to capitalise on the trust around the brand name and capture better margins on the retail front.
The foray also allows the Group to tap into new growth engines and expand its presence in the vibrant consumer landscape. With rising disposable income, the jewellery industry is getting more organised. The venture will capitalise on Aditya Birla Group’s deep expertise in lifestyle retail and understanding of consumer preferences.
Birla Group will be competing with Tata Group-owned Tanishq and Reliance Jewels. While Reliance Jewels focuses on offering value-for-money jewellery, providing high-quality products at competitive prices, Tanishq positions itself as a premium brand catering to the higher-end segment of the market.
Leading jewellery companies, including Kalyan Jewellers, Malabar Gold, Joyalukkas Jewellers and Senco Gold, are expanding their reach by opening new showrooms across India despite a sharp rise in gold prices.
Gold jewellery demand in the December quarter of last year was down 9 per cent at 200 tonnes against 220 tonnes logging in the same quarter last year on the back of a rise in gold prices. In 2023, jewellery demand was down six per cent at 562 tonnes (601 tonnes), according to the World Gold Council report.
