Jewellery Demand in India Resilient Despite Record-High Gold Prices: Indriya CEO

Jewellery demand in India remains resilient despite volatility in gold prices and consumers rather adapt to new buying patterns instead of deferring purchases, said Sandeep Kohli, CEO of Indriya, the jewellery retail brand of Aditya Birla Group.

"Volatility in any kind of pricing is not something consumers like. When there is too much volatility in gold rates, consumers tend to hold back purchases. But the demand does not go down," Kohli told PTI.

Gold jewellery continues to occupy a special place in consumers' hearts because purchases are often associated with weddings, festivals and other significant occasions, he said.

In the last six months, the demand for gold and value sales have been good. People have bought gold for weddings and during festivals, including Akshaya Tritiya, he said.

However, he acknowledged that soaring gold prices have prompted consumers to modify their buying patterns.

"... if the gold price has gone up to the extent that it has gone up just now, it is but obvious that consumers' budgets have not increased by that much. So, then consumers change their behaviour. They change the way they are buying... They may stretch it a bit," he said.

There are reports that consumers are moving beyond the traditional preference for 22-carat gold jewellery and opting for lower-purity variants, such as 18-carat and 14-carat.

According to Kohli, this is not a "down-trading" but a "smart adjustment" by consumers seeking to balance affordability with design and aesthetics.

Besides gold, the company is focusing on expanding its play in diamonds, which account for roughly 10 per cent of the Indian Jewellery market, estimated at around Rs 8 lakh crore.

As per its strategy, Indriya has adopted a diamond selection process that goes beyond conventional grading standards by assessing how effectively a diamond reflects, refracts and returns light to enhance brilliance, fire and scintillation. The company said only one out of every five natural diamonds evaluated meets its stringent quality benchmarks.

Asked about the growth of Indriya, the brand which was launched by Aditya Birla Group in mid-2024, backed by an initial investment of Rs 5,000 crore, Kohli said it has aligned its product portfolio with changing consumer preferences by offering a wider range of jewellery across different purity levels and price points.

Kohli also said the company is witnessing strong traction for diamond jewellery, driven by consumers' growing preference for design, value and product differentiation.

"Indriya currently operates 81 stores across more than 40 cities and expects to cross the 100-store milestone during the current fiscal year," said Kohli.

However, Kohli also added that Indriya being a new entrant is not chasing store numbers alone but is focused on establishing leadership in every market it enters.

"We want to be amongst the top three jewellers in India. Any industry that the Aditya Birla Group enters, we aspire to be among the top three players," he added.

The company is expanding through a mix of company-owned and franchise-operated outlets and has received strong interest from prospective franchise partners.

"We already have a very well-developed franchisee model and are constantly receiving enquiries from people wanting to partner with us," he said.