Aditya Birla Group Set to Unveil "Novel Jewels" in June, Aims to Invest ₹5,000 Crore

Aditya Birla Group is set to extend its business footprint into the gold jewellery sector with the upcoming launch of Novel Jewels in June, following its recent venture into the paint industry.

This marks the conglomerate's third significant expansion into new sectors within the last two years, following its entry into paints and B2B e-commerce for construction materials. The Group has earmarked a substantial investment of ₹5,000 crore for its pan-India branded jewellery venture.

The inauguration of three paint manufacturing plants by Aditya Birla Group company Grasim Industries in Tamil Nadu, Haryana, and Punjab signifies its commitment to generating revenue of ₹10,000 crore and achieving profitability within the next three years.

Speaking on the plans for the jewellery business, Kumar Mangalam Birla, Chairman of Aditya Birla Group, revealed that the company intends to introduce the venture in June. It aims to establish large-format exclusive jewellery retail stores across India, featuring proprietary jewellery brands.

The venture is poised to redefine the customer experience by creating a nationally recognized brand with distinctive designs and strong regional influences. Birla emphasized this strategy during the launch event of Opus, the decorative paints business.

The strategic focus on consumer-facing enterprises signifies a deliberate shift for the Group, leveraging the trust associated with its brand name and seeking improved margins in the retail sector.

Furthermore, the expansion into jewellery allows the conglomerate to tap into new growth opportunities and strengthen its presence in the dynamic consumer market. With increasing disposable income, the jewellery sector is witnessing a trend towards greater organization. Aditya Birla Group aims to leverage its expertise in lifestyle retail and consumer preferences to capitalize on this trend.

In the competitive landscape, Aditya Birla Group will face competition from established players such as Tata Group-owned Tanishq and Reliance Jewels. While Reliance Jewels emphasizes value-for-money offerings, Tanishq targets the premium segment of the market.

Despite challenges posed by a rise in gold prices, leading jewellery companies like Kalyan Jewellers, Malabar Gold, Joyalukkas Jewellers, and Senco Gold are expanding their presence by opening new showrooms across India.

According to the World Gold Council report, gold jewellery demand witnessed a decline in the December quarter of the previous year due to the increase in gold prices. However, the venture aims to navigate these challenges and capitalize on emerging opportunities in the jewellery sector.

HBL