Last week, the Aditya Birla Group entered the Indian jewellery market with the launch of its new brand, Indriya, backed by a substantial investment of ₹5,000 crores. This ambitious venture aims to position Indriya among the top three jewellery retailers in India within the next five years. This move capitalizes on Aditya Birla’s extensive experience in fashion and lifestyle retail, which already generates 20% of its revenue, amounting to ₹1 lakh crore in FY24.

By entering the jewellery market, Aditya Birla Group diversifies its portfolio beyond established sectors, tapping into significant growth potential and spreading risk amidst the trend towards formalization and organized retail.

Market Shift Towards Formalisation

The Indian jewellery market has seen a notable shift towards formalisation, with the organised segment expanding from 20% in FY19 to over 35% today. Pioneered by brands like Tanishq, which introduced the Karatmeter to verify gold purity, this trend has built significant consumer trust. The market’s revenue is expected to grow by nearly 20% in FY25, driven by factors such as increased mall presence of jewellery stores and a recent government cut in gold import duty.

Indriya’s Expansion Plans

Indriya plans to launch stores in over 10 cities, each around 7,000 square feet, featuring 15,000 curated pieces, including 5,000 exclusive designs. The brand will enhance customer experiences with customisation services, in-store stylists, and expert consultants.

Challenges and Success Factors

However, challenges remain. Jewellery purchases are highly loyalty-driven, making it difficult for new entrants to build a customer base. Aditya Birla’s past retail ventures, such as the More supermarket chain and Pantaloons, faced profitability issues. Indriya’s success will depend on effective inventory management and establishing trust to capture market share and achieve profitability in this competitive sector.