Novel Jewels Limited: Diversifying the Legacy of AB Group

With a vision statement “To be a premium global conglomerate with a clear focus on each of the businesses,” the Aditya Birla Group continuously sought growth channels. India’s post-COVID economy, focusing on indigenization, aligned with the company’s expansion efforts. Chief executive officer Kumar Mangalam Birla’s interest in the jewellery industry led to the creation of Novel Jewels Limited (Novel Jewels) and the launch of its jewellery brand, Indriya, on July 26, 2024. Competing with major players, Novel Jewels targeted a share of the INR 8.3 trillion jewellery market by 2027, raising questions about its business model and potential for success.

This case will assist in teaching corporate diversification and its implications to undergraduate and postgraduate students in strategic management courses. In addition to the core courses, such as strategic management, this case is helpful for elective subjects such as business models and corporate strategy. Specifically, this case will help in understanding concepts such as diversification strategy, strategic growth decisions, and corporate portfolio management. A thorough analysis of the case and assignment questions will allow students to grasp the business challenge and achieve the following:<ul><li>Understand the key factors and risks involved in evaluating the potential for diversification into a new industry.</li><li>Learn how to strategically position a new business within a larger portfolio to align with corporate goals and market dynamics.</li><li>Identify the critical steps and strategies required to help a new business achieve its goals.</li><li>Develop skills in forecasting financial outcomes based on market data and investment strategies.</li></ul>

• diversification
• expansion