Billionaire Kumar Mangalam Birla-led Aditya Birla Group (ABG) announced last month that it would invest Rs Rs 5,000 crore to launch exclusive jewellery retail stores across India. The stores named ‘Novel Jewels’ will sell in-house jewellery brands and Birla’s new venture will pose a direct challenge to Tata group’s Tanishq and Mukesh Ambani’s Reliance Jewels in around Rs 7,47,302 crore Indian gold jewelry retail market. According to a Technopak Analysis report, the Indian gold market would grow to USD 91 billion by FY25. The report added that around 65% of Indian gold market unorganized and the remaining 35% is made up of national and regional players.
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Tanishq, which is of Tata group firm Titan Company, is largest organised jewellery business in India. The company contributed around 85% to Titan Company’s Rs 40,575 crore net revenue in FY23. Tanishq has over 400 exclusive boutiques across India and the brand is likely to add space in 15 existing stores.
It is likely that Tanishq would open over 40 new stores in FY24. Some other key players in Indian gold market are Malabar Gold and Diamonds, Kalyan Jewellers and Reliance Jewels. It is expected that organized gold market in India would grow to 40% by 2025.
Kumar Mangalam Birla’s conglomerate is already expanding its reach in fashion and apparel retail business with Aditya Birla Fashion and Retail Limited. “This foray (branded jewellery) 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 Mangalam Birla, Chairman of Aditya Birla Group, had said.
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According to Technopak report, jewellery demand in India is significantly influenced by regional preferences as South India contributes 40 per cent of the total domestic consumption. Other popular brands in India are Joyalukkas, GRT Jewellers, Tribhovandas Bhimji Zaveri and Bhima Jewellers among others.
