Reliance Retail forays into 'Jewelry' business

Reliance Retail, part of Reliance Industries, will make its jewellery foray with the launch of Reliance Jewelry this Diwali.

Reliance will be the second corporate after the Tatas to enter the Rs 70,000 crore Indian jewellery industry, which is dominated by almost 3 lakh traditional family jewellers.

The company will launch its first store at Bangalore and will subsequently roll out 400 outlets in the next three years. Apart from gold and diamond jewellery, the stores would offer customised services for high-end jewellery. Sources close to the development indicated that Reliance is exploring possible branding options for the jewellery collections.

Reliance Jewelry may also sell gold below market rates. The move assumes significance in light of the recent surge in gold prices, which have breached the psychological barrier of Rs 10,000 per 10 gramme.

The company has reportedly entered into a sourcing agreement with Rosy Blue, one of the largest jewellery manufacturers, for operations. The jewellery foray is part of the company’s lifestyle retail, which includes books and music, cosmetics, lifestyle accessories and home solutions.

Reliance is set to compete with Tanishq, the jewellery brand from the Tatas.

“Tanishq has become the largest jewellery retail chain with an annual turnover of more than Rs 1,000 core. Reliance has adopted a similar store concept for the jewellery operations,” said a source.

Titan Industries registered a 45.6 per cent increase in income from jewellery, at Rs 432.4 crore for the second quarter ended September 30, 2007. Tanishq recently opened its 100th store at Patna.

Consultancy firm Technopak Advisors estimates the Indian jewellery market to grow by 15 per cent annually, while branded jewellery is expected to grow by 30 per cent.
Source: agencyfaqs