Titan targets stake in Damas Jewellery for Rs 4,500 cr; eyes GCC growth

Titan is negotiating to acquire a significant stake in Damas Jewellery, valued at Rs 4,500 crore; the move aligns with Titan's strategy to strengthen its presence in the GCC luxury market

Titan Co, the watch and jewellery arm of the Tata Group, is in discussions with Qatar-based Mannai Corp regarding the acquisition of a substantial stake in Damas Jewellery, a leading retailer in South Asia, according to a report by The Economic Times.

 

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

This is the second time Titan has pursued a deal with Damas, following previous negotiations that stalled over valuation issues. The renewed discussions signal Titan’s ongoing interest in expanding its presence in the West Asian jewellery market, aligning with its broader international growth strategy.

 

An experienced gold trade analyst noted that valuation depends on Damas’ business structure and bullion stock levels. A lower bullion stock would lower the valuation, while a higher stock would naturally increase it, the analyst said as quoted by the news report. 

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

Tanishq’s growing presence in GCC region

Tanishq, Titan’s jewellery brand, has been increasing its footprint in the GCC, having opened a flagship store in Dubai’s Gold Souk in January. The brand is also present in Doha, Sharjah, and Abu Dhabi. Initially catering to the Indian diaspora in the UAE, Tanishq has recently introduced collections inspired by Arabic designs and customised its stores to better align with local preferences, including boutique-style layouts in Qatar.

 

Titan’s jewellery division includes Tanishq, Zoya, CaratLane, and Mia by Tanishq. For FY24, the division reported a 20 per cent growth in income, reaching Rs 38,353 crore. Titan, valued at Rs 58,447 crore also operates in sectors such as wearables, fragrances, fashion accessories, and Indian apparel.

Damas’ market presence

Founded in 1907, Damas runs 300 stores across the GCC, employing over 2,000 people. The company’s portfolio includes luxury brands such as Graff, Djula, Roberto Coin, and Mikimoto, in addition to its in-house collections.

 

Experts suggest that if Titan acquires Damas, it would significantly enhance Tanishq’s presence in the GCC market. The acquisition would support Titan’s international expansion strategy and offer access to established luxury markets, the news report stated.

 

The UAE ranks as the world’s fifth-largest market for gold jewellery and holds the second-highest per capita consumption of gold jewellery at 5.07 grams, trailing only Hong Kong as of 2023.