Aditya Birla Group Invests $600 Mn On Branded Jewels

India's Aditya Birla Group said on Tuesday it was foraying into the branded jewellery retail business with an investment of Rs 5,000 crore, as it looked to attract affluent customers in a crowded market.

A new venture, named Novel Jewels, will house the jewellery business that will build large retail stores across India with in-house brands, the group said in a statement.

The telecom-to-metals conglomerate's entry comes at a time when the market is dominated by thousands of small and large local independent jewellery stores, as well as branded outlets like Titan Company-owned Tanishq and CaratLane, and Kalyan Jewellers.

"With rising disposable income, discerning and aspirational consumers are leaning more towards design-led, bespoke and high-quality jewellery," said group chairman Kumar Mangalam Birla.

India's gems and jewellery market accounts for about 7 per cent of the GDP, with the market projected to grow to USD 90 billion by 2025, according to the Aditya Birla Group.

The jewellery market has also attracted foreign investors. Reuters reported last month that Singapore's Temasek Holdings was considering investing USD 100 million in Indian jeweller BlueStone for a stake of about 20 per cent.