Aditya Birla Group forays into branded jewellery retail
News: The Aditya Birla group has announced a foray into branded jewellery retail and is planning to invest Rs 5000 crore. This business will be housed in a new venture, “Novel Jewels Ltd”, which will build large-format exclusive jewellery retail stores across India.
Views: The jewellery industry in India is witnessing organised players gaining market share from smaller players owing to implementation of regulations like GST, Gold Hallmarking, etc, which have increased the compliance burden on unorganised players and provided organised segment players with a level playing field. We believe Aditya Birla group’s foray into branded jewellery would not materially impact the long term growth prospects of Titan Company from our coverage universe as Titan has built a strong brand recall and gained customer trust that will be difficult for any new entrant to replicate.