ADITYA BIRLA GROUP TARGETS $25 BN REVENUE FROM CONSUMER BUSINESS IN 5 YEARS, LAUNCHES JEWELLERY BUSINESS

New Delhi: Aditya Birla Group expects its consumer business to jump to $25 billion over the next five years as it bets on new segments such as paints and jewellery, accounting for about one-fourth of the cement-to-telecom conglomerate’s overall revenue.

On Friday, the group announced its entry into the branded jewellery business, marking the presence of yet another large conglomerate in India’s ₹6.7-trillion jewellery market.

The group has earmarked an investment of ₹5,000 crore for the jewellery business, the company said. The business will be housed under Novel Jewels, under the brand name ‘Indriya’.

“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,” Kumar Mangalam Birla, chairman, Aditya Birla Group, said in a statement.

“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. “We will be among the top 3 national jewellery retailers over the next 5 years, and will continue to grow at a 50% CAGR.”

The Aditya Birla group already earns about 20% of its revenue from consumer businesses, he added.  

“I believe this will increase to over 25% over the next 5 years to reach about $25 billion of revenue from consumer businesses. This would be larger than most leading standalone consumer businesses in India,” Birla said at an event in the capital. “One of the key drivers for this will be of course the successful ramp-up of our newest consumer businesses, paints and jewellery retail.”

The group’s revenue from its consumer business, which includes lifestyle retail, financial services, and telecom, in 2023-24 was $13 billion.

Earlier this year, Aditya Birla Group entered the decorative paints business under the ‘Birla Opus’ brand, targeting ₹10,000 crore in gross revenue within three years of full-scale operations.

This entry into jewellery is a “natural extension” for the group, which has been in the fashion retail and lifestyle industry for over 20 years, the company said in a statement.

Initially, the group will open four Indriya stores in Delhi, Indore, and Jaipur, with plans to expand to over 10 cities within six months. The brand will offer an initial assortment of about 15,000 curated jewellery pieces with more than 5,000 exclusive designs.

India’s jewellery sector has been experiencing a significant trend towards formalization, with the organized sector accounting for 36-38% of the total jewellery market in FY24, up from 22% in FY19. 

The total jewellery market grew at a compound annual growth rate of 8% in revenue between FY19 and FY24, reaching a market value of ₹6,400 billion, brokerage Motilal Oswal said in a report in June. The organized market clocked 18-19% revenue CAGR, while Tata Group’s Titan, Kalyan, and Senco combined recorded a 20% revenue CAGR during FY19-24.

2024-07-26T15:34:00Z dg43tfdfdgfd