Tata vs Birla: Kumar Mangalam Birla is preparing to give tough competition to Tata, Rs 5,000 crore plan is ready

New Delhi: Tata Group’s veteran brand Tanishq may face a tough challenge in the coming days in retail branded jewellery. Aditya Birla Group has announced its foray into branded jewelery retail business with an investment of Rs 5,000 crore. This is the third new venture of the group in the last two years. Earlier it had entered B2B e-commerce for paints and building materials. Aditya Birla Group has announced formation of a new venture Novel Jewels Limited for branded jewelery retail business. Under this, large-format jewelery retail stores will be opened across the country. These will have in-house jewelery brands. The group has made complete preparations to enter this business.

Aditya Birla Group Chairman Kumar Mangalam Birla said that this strategic portfolio choice will provide a new growth engine to the group and increase our presence in the consumer landscape. The disposable income of people is increasing and their trend is increasing towards high-quality jewellery. The total business of Aditya Birla Group is 60 billion dollars. Its major companies include Grasim Industries, Hindalco, Aditya Birla Fashion & Retail and Aditya Birla Capital. About 1,40,000 employees work in this group.

Tanishq will get competition

The revenue of Aditya Birla Fashion and Retail as on March 31, 2022 was Rs 8,136 crore. The company has 3,487 stores and more than 30,000 multi-brand outlets across the country. Birla had said in the company’s AGM that by the year 2026, the company’s revenue is expected to reach Rs 21,000 crore. Aditya Birla Group’s foray into retail branded jewelery business is expected to give tough competition to Tata’s jewelery brand Tanishq. Tanishq opened its first showroom in 1996 in Chennai.