Titan Plans to Invest Rs 4,500 Cr in Damas Jewellery, Eyes Growth in GCC

Titan Co, the Tata Group's watch and jewellery arm, is in talks with Qatar-based Mannai Corp about acquiring a significant stake in Damas Jewellery, a leading South Asian retailer.

Talks are centered on a valuation of Rs 4,500 crore, but an agreement has yet to be reached.

Titan is pursuing a deal with Damas for the second time, after previous negotiations fell through due to valuation issues. The renewed discussions indicate Titan's continued interest in expanding its presence in the West Asian jewellery market, which is consistent with its overall international growth strategy.

An experienced gold trade analyst stated that Damas' valuation is determined by its business structure and bullion stock levels. A lower bullion stock would reduce the valuation, whereas a higher stock would naturally increase it, according to the analyst, as reported in the news.

Mannai Corp, which acquired Damas in April 2012, now owns the entire company. Damas, based in Dubai, is a leading jewellery retailer in the Gulf Cooperation Council (GCC) region.

Tanishq's Growing Presence in the GCC Region

Titan's jewellery brand, Tanishq, has expanded its presence in the GCC, opening a flagship store in Dubai's Gold Souk in January. The brand is also available in Doha, Sharjah, and Abu Dhabi. Tanishq initially served the Indian diaspora in the UAE, but has recently introduced collections inspired by Arabic designs and customized its stores to better align with local preferences, including boutique-style layouts in Qatar.

Titan's jewellery division consists of Tanishq, Zoya, CaratLane, and Mia by Tanishq. For FY24, the division's income increased by 20% to Rs 38,353 crore. Titan, which is valued at Rs 58,447 crore, also operates in the wearables, fragrance, fashion accessories, and Indian apparel sectors.

Damas' Market Presence

Damas, founded in 1907, operates 300 stores throughout the GCC and employs over 2,000 people. The company's portfolio includes luxury brands such as Graff, Djula, Roberto Coin, and Mikimoto, as well as its own collections.

Experts believe that Titan acquiring Damas would significantly increase Tanishq's presence in the GCC market. The acquisition would help Titan's international expansion strategy and provide access to established luxury markets, according to the news report.

As of 2023, the UAE is the world's fifth-largest gold jewellery market, with the second-highest per capita consumption of 5.07 grams, trailing only Hong Kong.