Aditya Birla Group Targets $25 Billion from Consumer Operations in 5 Years with New Jewelry Venture

Aditya Birla Group aims to boost its consumer business to $25 billion over the next five years by entering new markets like jewelry and paints.

On Friday, the group announced its entry into the branded jewelry market, investing ₹5,000 crore in its new jewelry brand, ‘Indriya,’ under Novel Jewels. This move adds another big player to India’s ₹6.7-trillion jewelry market.

“We are doubling down on the dynamic Indian consumer market by launching new brands in paints and jewelry,” said Kumar Mangalam Birla, chairman of Aditya Birla Group. He noted that entering the jewelry business is smart due to the shift from informal to formal sectors, strong consumer trust in brands, and the booming wedding market. “We aim to be among the top 3 national jewelry retailers in the next 5 years and will grow at a 50% annual rate.”

Currently, about 20% of the group’s revenue comes from its consumer businesses, but Birla expects this to rise to over 25% in five years, reaching $25 billion. This growth will be driven by the success of their new ventures in paints and jewelry retail.

In the fiscal year 2023-24, Aditya Birla Group’s consumer business, including lifestyle retail, financial services, and telecom, brought in $13 billion.

Earlier this year, the group launched the ‘Birla Opus’ brand in the decorative paints business, targeting ₹10,000 crore in revenue within three years.

The group sees the jewelry business as a natural extension of its 20-year experience in fashion retail. Initially, four Indriya stores will open in Delhi, Indore, and Jaipur, with plans to expand to more than 10 cities within six months. The brand will offer around 15,000 curated jewelry pieces with over 5,000 exclusive designs.

Aditya Birla Group’s Novel Jewels will face competition from established players like Tata Group’s Titan Co. Ltd, Kalyan Jewellers India Ltd, Joyalukkas, and Reliance Jewels. In the paints sector, Birla Opus will compete with Asian Paints Ltd and Berger Paints Ltd.

India’s organized jewelry sector has grown from 22% of the market in 2018-19 to 36-38% in 2023-24, with revenues growing at 8% annually to reach ₹6,400 billion, according to a report by Motilal Oswal. The organized market saw an 18-19% annual revenue growth, while companies like Titan Co. Ltd, Kalyan Jewellers India Ltd, and Senco Gold recorded a 20% annual growth.

Despite high gold prices posing a challenge, the shift from unorganized to organized retail continues to benefit the sector, with consumers increasingly opting for branded products and more frequent purchases.

Aditya Birla Group has been expanding its consumer business, particularly in ethnic wear, by acquiring stakes in brands like Sabyasachi, Shantnu & Nikhil, House of Masaba, and Jaypore. It also developed in-house brands such as Tasva and Marigold Lane. The group acquired the India business of Reebok in FY22 and a 51% stake in TCNS Clothing in 2023, adding brands like W, Aurelia, and Wishful to its portfolio.

In FY23, Aditya Birla Fashion and Retail reported a 53% increase in revenue to ₹12,418 crore. The Aditya Birla Group is a $65-billion global conglomerate operating in 36 countries with over 187,000 employees.