Aditya Birla Group on Wednesday launched the first Indian store of premium French retailer Galeries Lafayette, marking the Parisian luxury brand’s entry into the country.
The flagship store, spread across 90,000 sq. ft. in two heritage buildings off Dalal Street, brings the 125-year-old retailer’s signature luxury department store experience to Mumbai — an area already home to global luxury labels such as Hermès and Louis Vuitton.
Speaking at the launch event, Kumar Mangalam Birla, Chairman of the $67-billion Aditya Birla Group, said the conglomerate is in the midst of a “strategic acceleration”, with its businesses expanding in both scale and strategic breadth.
“Our Group, as you know, is currently in the midst of the next phase of strategic acceleration,” Birla said, adding that the axis of its portfolio is slowly but surely being tilted, with the combination of mature operating companies and agile, younger ventures shaping a platform for long-term value creation.
He said the group’s core businesses are poised for transformational growth, while its new ventures — including Birla Opus, its paints business launched last year, and Indriya, its newly introduced jewellery retail chain — are gaining strong momentum.
Birla pointed out that India stands out for the size, energy, and untapped potential of its consuming class, with a customer base that is increasingly more discerning, aspirational, and brand-conscious.
He said the Indian luxury market is at a threshold of transformation and is poised to grow fourfold to USD 90 billion by 2030.
“With one of the fastest-growing affluent populations in the world and a new generation of globally exposed consumers, the appetite for high-end experiences has never been stronger,” Birla said. “As the economy matures and its cultural confidence deepens, the moment is right to redefine luxury retail. At the Aditya Birla Group, we see this as an opportunity to unlock a new wave of growth.”
Nicolas Houzé, Executive Chairman of Galeries Lafayette, said the size of the opportunity in India, driven by its young and ambitious population, attracted the group to the market.
He said the company chose Mumbai, the ‘city of dreamers’, as the location for its first store because of its strong potential.
The next Galeries Lafayette outlet is expected to open in New Delhi within the next 24 to 36 months, said Sathyajit R, Chief Executive of International Business at Aditya Birla Fashion and Retail Ltd (ABFRL).
He said the two companies have entered into a 15-year license agreement, under which the French company will receive a royalty. If rules governing foreign ownership of multi-brand retail in India change, both parties may explore other ways of collaboration, he added.
