New Delhi: The Aditya Birla Group on Friday launched a jewellery retail brand, Indriya, that directly pits it against the Tata Group‘s Tanishq and the Reliance Group‘s Reliance Jewels, and other national chains such as Kalyan Jewellers and Joyalukkas. The conglomerate with business interests spanning metals and cement to financial services and fashion is entering the segment at a time when consumers are increasingly shifting from unbranded to branded jewellery, influenced by celebrities and high-profile weddings and movies.
Indriya aims to be among the top three national players over the next five years, group chairman Kumar Mangalam Birla said.
“Around 20% of our group’s revenue today comes from consumer businesses. And I believe this will increase to over 25% over the next five years to reach about $25 billion,” he said.
Its consumer business would be larger than most leading standalone consumer businesses in India, Birla said. “One of the key drivers for this will be the successful ramp-up of our newest consumer businesses-paints and jewellery retail.” The brand is housed under a new jewellery venture, Novel Jewels. The group has allocated an investment of ₹5,000 crore for building the new-age jewellery business.
ET first reported about the group’s plan in its edition of November 1, 2022.
The move comes on the eve of the festive and wedding seasons.
The Indian jewellery market is estimated to be worth ₹6.7 lakh crore.
“Now, the sphere of influence is beyond just your immediate friends and family. It includes a much wider social network and social media, of course. Increasingly tier-2 India is starting to be a major driver of spending across branded categories,” Birla said, adding: “The Indian consumer is rapidly coming of age and India is perhaps the most promising consumer cohort globally.”
According to Birla, the ongoing value migration from informal to formal sectors, rising consumer preference for trusted brands, and the ever-booming wedding market present substantial growth opportunities.
“This foray is a natural extension for the group which has been in the fashion retail and lifestyle industry for over 20 years,” he said. Indriya will simultaneously open four stores in three cities-Delhi, Indore and Jaipur-and expand to more than 10 cities within six months.
“Jewellery as a category is transitioning from mere investment to a statement,” said Novel Jewels chief executive Sandeep Kohli.
The $65 billion group’s entry into the segment coincides with the announcement of a reduction in customs duty on gold, silver and platinum in this week’s union budget.
The size of the Indian gold jewellery retail market stood at nearly $60 billion in FY24. Nearly, 65% of the domestic market is unorganised, comprising more than 500,000 goldsmiths and jewellers. The remaining 35%-mostly organised retail-comprises both national and regional players.
