New Delhi, July 28 : As the Aditya Birla Group forays into branded jewellery business with an investment of Rs 5,000 crore, industry experts on Saturday said the shift towards consumers purchasing from branded retailers and upgrading to studded products will help the company cement its position in a massive over Rs 6.4 lakh crore domestic jewellery market.

The branded jewellery players ride on the huge wedding market which reached Rs 10 lakh crore in the last fiscal (FY24) in the country.

Keeping the potential growth in mind, Aditya Birla Group has entered the branded jewellery business -- dominated by the likes of Tata Group’s Titan, Kalyan Jewellers and Joyalukkas, among others -- under Novel Jewels with the brand name ‘Indriya’.

According to Kumar Mangalam Birla, Chairman, Aditya Birla Group, they have "redoubled their bet on the dynamism of the Indian consumer this year, by launching two major new consumer brands -- in paints and jewellery,”

He said that entering the jewellery business is compelling due to the ongoing value migration from informal to formal sectors, the rising consumer preference for strong, trusted brands, and the ever-booming wedding market, all of which present substantial growth opportunities.

The company aims to be among the top three jewellery retailers in the country over the next five years, at a compound annual growth rate (CAGR) of 50 per cent.

Experts said the increasing frequency of visits by jewellery lovers at branded stores will continue to benefit the market players over the medium term.

“Rising disposable incomes and economic growth across the parameters are other factors that will drive the jewellery market,” they added.

According to a Motilal Oswal report last month, the jewellery retail sector recorded a rapid growth in the last five years -- surging from Rs 5,04,400 crore in 2019 to Rs 6,40,000 crore in 2024 on the back of rising incomes and greater trust in the products due to hallmarking.

The report mentioned that there are multiple drivers in the industry leading to such rapid growth, driven by rising disposable income (higher per capita growth in double digits), an improving mix for regular wear (beyond weddings and investment-led), enhanced product offering (such as design and diamonds), trust-building through hallmarking, and a better buying experience at organised retail outlets.