For all the jewelry enthusiasts out there, soon there will be a new avenue to shop for their bling – Novel Jewels. The brand is owned by the famous Aditya Birla Group and will feature in-house brands.
A statement released by the company revealed that the indigenous brand will have its stores opened across the country in India but it did not reveal any timeline for the same.
“This foray is a strategic portfolio choice that allows us to tap into new growth engines and expand our presence in the vibrant Indian consumer landscape,” Kumar Birla, chairman of Aditya Birla Group, said in the statement.
Kumar Mangalam Birla intends to invest 50 billion rupees ($605 million) to go into the jewelry business.
The Group has been ambitiously diversifying its operations for the past few years. Earlier it invested $250 million for launching an e-commerce site for building materials and approximately $1.1 billion to set up a paint venture.
India is a diverse country and consumer preferences vary significantly across the length and breadth of the country. Jewelry is no exception. From the design of jewels to the demand for gemstones, there is a vast diversity in jewelry, even the metal which is used varies. The new venture of the Group aims to capitalize on this diversity factor by offering a wide range of jewelry catering to the demand of customers from various regions of the country. Further, anyone from any part of the country can have access to the design elements from another aspect.
According to an estimate, the Indian gems and jewelry market is projected to reach almost $120 billion by 2027. The primary reason behind this rise is attributed to growing incomes and higher demand for luxury gifts for festivities and celebrations – says a report by a Dublin-based firm, Research and Markets.
At present (in 2023) the Indian jewelry industry stands at $77 billion which is projected to reach around $95 billion by 2025. The jewelry sector occupies roughly 7% of the GDP in India. With these statistics, the company’s foray into the jewelry business looks promising as the Indian gems and jewelry market is poised to grow exponentially.
The Aditya Birla Group’s decision to enter the jewelry industry is a calculated move to take advantage of the expanding potential of the Indian jewelry market. Additionally, it demonstrates the Group’s ongoing attempts to diversify its holdings and increase its visibility in India’s dynamic consumer market.
Earlier in 2023, Aditya Birla Fashion and Retail Limited, the group’s fashion division, paid $202 million for a 51% share in TCNS Clothing, the owner of ethnic labels W, Aurelia, Wishful, Folksong, and Elleven. With this arrangement, one of the greatest acquisitions in the nation’s history was made in the Indian fashion sector.
On India’s 100 Richest list published last October by Forbes Asia, Kumar Birla was ninth, with a net worth of $15 billion. He is the fourth generation of the Birla family and inherited the business empire at age 28 after his father, Aditya Birla, passed away in 1995. With 180,000 employees, the Birla Group has interests that span cement to financial business. It had revenue of $60 billion last year in FY 2022-23.