In a strategic move to further diversify into consumer-oriented ventures, billionaire Kumar Mangalam Birla, the chairman of the Aditya Birla Group, has announced plans to enter the gold jewellery market, the second-largest bullion market globally. The conglomerate’s branded-jewellery retail business is slated to be launched nationwide by July through a privately-held company.
During an event introducing the group’s paints business in the northern Indian state of Haryana, Birla outlined the organization’s shift towards consumer-facing enterprises, aligning with evolving market trends. This venture marks the third significant foray into new sectors for the Mumbai-based conglomerate in recent years, following entries into the paints industry and B2B e-commerce for building materials.
Competing in a market traditionally dominated by small retailers and national chains such as the Tata Group’s Tanishq and Warburg Pincus LLC-backed Kalyan Jewellers India Ltd, Birla expressed confidence in the group’s ability to make a substantial impact.
Previously earmarking 50 billion rupees ($604 million) for the jewellery business, Birla’s move comes amid projections of a rebound in India’s gold demand. The World Gold Council anticipates an increase to as much as 900 tonnes in the next two years, up from 748 tonnes in 2023. This surge is attributed to growing incomes as the country’s economy expands. Notably, the cultural significance of wearing and gifting gold during weddings and festivals in India adds a favorable dimension to the venture.
