Aditya Birla Group Diversifies Portfolio with Entry into Paints and Jewellery Businesses in 2024

Aditya Birla Group is set to diversify its business portfolio with strategic entries into the realms of decorative paints and gold jewellery in the current year. The Group's paints business will be housed under Grasim Industries, while a newly formed entity named Novel Jewels will spearhead the foray into the gold jewellery market.

Novel Jewels aims to establish itself as an aspirational national jewellery brand infused with a robust regional flavor. To achieve this vision, the company plans to invest a substantial ₹5,000 crore to develop an extensive network of large-format exclusive stores across the country.

Recognizing the immense potential of the gems and jewellery sector, which currently contributes around 7 percent to the GDP, the Aditya Birla Group envisions the industry reaching $70 billion by 2025. In India, the jewellery market is predominantly driven by individual family-owned businesses, with a limited presence of national brands.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, highlighted the milestones achieved in the previous year, with an impressive 40 percent increase in overall market capitalization to approximately $90 billion. While manufacturing businesses consolidated their leadership positions, consumer-centric endeavors are poised for transformative growth.

In his annual note 'Reflection,' Birla expressed confidence in the strategic move, stating, “With the launch of two new and large businesses in 2024, we are constructing a growth platform with a unique mix of strength and scope.” The expansion into the decorative paints and gold jewellery segments reflects the group's commitment to diversification and capturing new avenues for growth.

HBL