Aditya Birla Group enters Jewellery Biz with ‘Indriya’, aims to be amongst top three national players

Birla will now be competing in a market that has a strong presence of other conglomerates such as Tata Group-owned Tanishq and Reliance Jewels.

Aditya Birla Group Chairman, Kumar Mangalam Birla Photo | Express

NEW DELHI: Aditya Birla Group Chairman, Kumar Mangalam Birla, on Friday announced the launch of the Group's jewellery retail business, marking the Group's foray into the rapidly expanding Rs.6.7 lakh crore Indian jewellery market.

The jewellery business, launched under the brand Indriya, aims to secure a position among India's top three jewellery retailers over the next 5 years. This ambitious venture is backed by an investment of Rs 5,000 crore. 

Birla will now be competing in a market that has a strong presence of other conglomerates such as Tata Group-owned Tanishq and Reliance Jewels. The other big players in the organized market are Kalyan Jewellers, Malabar Gold, Joyalukkas Jewellers and Senco Gold. 

Birla’s entry into the jewellery market comes right after gold prices corrected sharply by 7% or Rs 5,000 per 10 grams in the local markets after the government slashed basic custom duty on gold.

Market experts believe that the lower costs will encourage more people to invest in the yellow metal, both as a commodity and as a financial asset. The import duty on gold and silver is now down to 6% now, compared to 15% earlier. Platinum import duty has also come down to 6.4% from 15.4% earlier.

Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, "This year, we have redoubled our bet on the dynamism of the Indian consumer, by launching two major new consumer brands - in paints and jewellery. Entering the jewellery business is compelling due to the ongoing value migration from informal to formal sectors, the rising consumer preference for strong, trusted brands, and the ever-booming wedding market, all of which present substantial growth opportunities.”

He added, “This foray is a natural extension for the Group which has been in the fashion retail and lifestyle industry for over 20 years. The robust competencies that we have honed in retail, design and brand management will serve as pillars for our success.”

Indriya will simultaneously open four stores in three cities - Delhi, Indore, and Jaipur. Birla has plan is to expand to 10+ cities within six months. The company said that large 7000 sq ft plus stores— 30%-35% larger than the average size of national brands' — will carry an extensive range that spans occasions.

At present, 20% of the group's revenue comes from consumer business. Birla expects this to grow to 25% in the next 5 years, churning a revenue of $25 billion.

Sandeep Kohli, CEO of Novel Jewels, said, "Jewellery as a category is transitioning from mere investment to a statement. Our proposition is built on perceptible differentiation, distinctive designs, personalized service, and authentic regional nuances...Our best-in-class digital front end will create a seamless experience across digital and physical touchpoints and herald the new age in jewellery retail."

Birla’s jewellery business and different brands will be clubbed under Novel Jewels. The Group had first announced its entry into the branded jewellery retail business last year in June. 

For decades, India’s jewellery landscape has been dominated by the unorganised sector, primarily consisting of local standalone jewellery stores. However, this trend is undergoing a radical shift in favour of national branded jewellery chains. From constituting a mere 5% of the jewellery market in 2005, branded players now make up an impressive 35% of the market.