Aditya Birla Group is set to launch a separate business venture for branded jewelry to take on Tata Group’s Tanishq, two executives aware of the plans said.
The venture will reportedly involve AB Group setting up large-format exclusive jewelry retail stores, launching in-house jewelry brands across daily-wear and premium price points, and tie-up with mid-sized jewelers.
“The group has allocated a huge investment of Rs 4,500-5,000 crore for the venture and is in the process of finalizing a leadership team for the business,” according to an executive.
The ambitious venture is reportedly being directly overseen by group chairman Kumar Mangalam Birla and will be independent of Aditya Birla Fashion and Retail’s (ABFRL) business. The $60 billion retail, textiles, and cement conglomerate’s flagship companies include Grasim Industries, Hindalco, Aditya Birla Fashion and Retail, and Aditya Birla Capital among others.
While the jewelry business remains largely unorganized in India, large jewelry players like Kalyan Jewellers, Joyalukkas Group, and Malabar Gold & Diamonds have all reported a strong revival of demand for jewelry, amid positive consumer sentiment after two years of the pandemic.