Titan to acquire 67% stake in Damas jewellery via UAE subsidiary

Tata Group's Titan Company said that the acquisition will be funded through a mix of internal accruals, existing cash balances, and debt

Titan Company Limited, through its Dubai-based wholly owned subsidiary Titan Holdings International FZCO, has signed an agreement to acquire a 67 per cent stake in Damas LLC, the holding company for the Damas jewellery business in the Gulf Cooperation Council (GCC) region, the company said in a BSE filing on Monday.

 

The deal was struck with Damas International Limited, a subsidiary of Qatar-based Mannai Corporation. The value of the transaction has been pegged at around $282 million (AED 1,038 million). The acquisition will be funded through a mix of internal accruals, existing cash balances, and debt, the company said.

 

Following the acquisition, Titan will have an option to acquire the remaining 33 per cent stake after December 31, 2029.

 

Titan Company is a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO). It has brands like Tanishq, Titan EyeCare, etc.

 

CK Venkataraman, Managing Director of Titan, said, “With the Damas acquisition, Titan Company is stepping out from its diaspora focus into other nationalities and ethnicities. Damas is a prestigious brand revered in the GCC markets for its product innovation, quality and customer experience.”

 

He added, “The acquisition not only creates a significant new global opportunity for Titan, but also enhances Titan’s overall position in the jewellery market in the GCC countries and brings in multiple synergy benefits in talent, retail networks and supply chain.”

 

Damas Jewellery, founded in 1907 and headquartered in Dubai, operates 146 stores across the six GCC countries — UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

 

Alekh Grewal, Group CEO of Mannai Corporation, said, “We are delighted that Titan is taking the opportunity to invest in the future of Damas. Both Titan and Damas share the same values in terms of passion for beautiful jewellery, innovative design and dedicated customer service.”

 

Mannai will continue to own a minority stake in Damas for the next 4 years as the growth plans for Damas are taken forward,  Grewal added. "It is intended that the proceeds of the sale transaction will be deployed by Mannai to strengthen its resources in support of further expansion of its core trade and IT services businesses in addition to reducing the Group Debt," he said.

 

Shares of Titan Company closed at ₹3,431.2 apiece on the BSE on Monday.