Aditya Birla Group Set To Unveil A Series Of Novel Jewels Stores On July 27

The group will launch its maiden Novel Jewels store in Delhi and invest Rs 5,000 crore in the business to take it across the country.

Kumar Mangalam Birla, chairperson of the Aditya Birla Group. (Source: Company)

The Aditya Birla Group, led by billionaire Kumar Mangalam Birla, is set to foray into the branded jewellery space with the simultaneous opening of Novel Jewels stores at multiple locations—nearly a year after the group first revealed its plans to venture into this consumer-focused sector.

At least four stores are set to open on July 27—two each in Delhi, Jaipur and Indore, according to multiple people with knowledge of the matter who spoke on condition of anonymity. In Delhi, one will be a standalone store in Karol Bagh, while the other will be located in Vegas Mall in Dwarka.

Under Novel Jewels, the retailer plans to build large-format stores across the country with in-house jewellery brands. With a war chest of Rs 5,000 crore, Aditya Birla is gearing up to compete in a market dominated by established brands like Tanishq—owned by the Tata Group—and Reliance Jewels. Other major players in the organised sector include Kalyan Jewellers India Ltd., Malabar Gold, Joyalukkas and Senco Gold.

Largely driven by individual family-owned businesses, the domestic gems and jewellery market was worth roughly Rs 4.7 lakh crore in fiscal 2023, with gold jewellery dominating the overall market with a 66% share.

This marks Aditya Birla's second foray into a new vertical this year, following its entry into the paint industry with Birla Opus in March.

On the sudden focus on consumer-facing businesses, Aditya Birla had earlier said that it is a strategic shift as the group wants to capitalise on the trust around the brand name and capture a better margin on the retail front.

The launch also coincides with Finance Minister Nirmala Sitharaman's announcement of a reduction in customs duty on gold, silver and platinum.

Gold prices will now attract a lower import duty of 6%, as compared to 15% earlier, making the precious yellow metal cheaper ahead of the crucial wedding and festive season.

Many retailers are already experiencing a surge in demand. They said that customers are eager to buy the heavy jewellery they have avoided over the past six months due to record-high gold prices.

Novel Jewels aims to create an “aspirational national jewellery brand with a strong regional flavour", according to a statement from the Aditya Birla Group.

The group appointed Sandeep Kohli as the chief executive officer of Novel Jewels, effective April.

Also Read: Grasim's Birla Opus Products Priced At A 5-6% Discount To Asian Paints

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WRITTEN BY
Sesa Sen
Sesa is Principal Correspondent tracking India's consumption story. She wri... more
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