Aditya Birla Group’s jewellery venture, Novel Jewels, has announced a significant investment plan of Rs 5,000 crore to open 100 retail stores across India over the next 18 months. Novel Jewels will also offer franchise partnerships to capitalise on interest from prospective franchisees, aiming to expand its presence within India’s growing organised jewellery market, where there is a rising demand for branded fine jewellery.
Strategic Expansion Plan and Market Opportunity
Novel Jewels, operating under the Indriya brand, plans to establish itself as a key player in India’s organised jewellery sector, which is seeing a shift towards branded jewellery products. Sandeep Kohli, CEO of Novel Jewels, highlighted the strong interest from potential franchisees, noting that the company will soon introduce its franchise model to broaden its reach without relying solely on company-owned stores.
“We’ve already got a huge unsolicited kind of response from people wanting to be our franchisees,” Kohli said. “So we will very soon roll that model out.”
Demand Growth for Branded Jewellery in India
India’s jewellery market has traditionally been characterised by family-owned and local businesses. However, with more consumers prioritising quality assurance, branded jewellery demand is growing, creating considerable expansion potential for companies entering this space. Novel Jewels is positioning itself as a large-scale entrant into the branded fine jewellery sector, with what Kohli describes as a significant investment unmatched by most recent entrants.
“There is a huge scope of growth in the branded jewellery space, so the opportunity in this market is huge,” Kohli explained. “We are probably the only large-scale player entering into this business in the 2020s with this kind of investment after many players that came in the 1990s or before.”
Early Store Rollout and Sales Performance
Since its launch in July 2023, Novel Jewels has been rolling out new stores rapidly, opening one outlet per week on average. This rollout has reportedly generated higher-than-expected initial sales, which may enable the company to accelerate its expansion. The early success of these stores suggests that there is significant consumer demand for Novel Jewels’ offerings and for branded jewellery in general.
Implications for the Jewellery Industry
Novel Jewels’ expansion comes amid ongoing shifts in the organised jewellery sector, driven by evolving consumer preferences and economic growth. For jewellers across India, the entry of a high-profile player such as Novel Jewels may introduce new competitive dynamics, potentially promoting other brands to adapt their strategies. Additionally, Novel Jewels’ move into franchising could lead other jewellers to consider similar models, allowing for extended reach and brand visibility.
