Aditya Birla Group on Tuesday announced its planning to enter the branded jewelery retail sector, investing Rs 5,000 crore.
The company stated that it plans to establish a new venture called “Novel Jewels Ltd” to operate this business. The venture will focus on creating expansive jewelery retail stores throughout India, offering in-house jewelery brands. The newly established branded jewelery retail venture will be managed by a recently assembled leadership team consisting of individuals with extensive expertise in the retail industry and in the specific category of jewelery.
Kumar Mangalam Birla, the Chairman of Aditya Birla Group, stated that this entry into the jewelery retail sector is a strategic decision to diversify their portfolio and seize opportunities for growth in the dynamic Indian consumer market, as mentioned in a report by Economic Times. As disposable income increases, consumers with discerning tastes and aspirations are increasingly seeking design-focused, customized, and premium-quality jewelery, according to him.
Meanwhile, Aditya Birla Ventures, the venture capital division of the Group, participated as a co-leader in a fundraiser for GIVA, a startup specializing in silver jewelery. In June, the company successfully secured Series B funding. Aryaman Vikram Birla, the founder of Aditya Birla Ventures, expressed optimism about the growth potential of silver jewelery in both online and offline channels when the venture was announced.
As of 31 March 2022, Aditya Birla Fashion and Retail Limited (ABFRL) reportedly generated a revenue of Rs 8,136 crore. Its fashion brands and retail formats are present in a wide network of 3,487 stores and over 30,000 multi-brand outlets.
Speaking at the company’s Annual General Meeting (AGM), Birla stated that the projected revenue of Rs 21,000 crore for the year 2026 would not only surpass the set target but also establish even higher milestones for the future growth of the business.
