Titan sets its sights on Damas Jewellery; a sparkling second attempt

Titan Co, the watch and jewellery unit of Tata group, is said to be in talks with Qatar-based Mannai Corp to acquire a significant stake in Damas Jewellery, a prominent retailer in West Asia. Discussions are focused on valuation, estimated at ₹4,500 crore (about $518 million), with no consensus yet, said people with knowledge of the matter.

This marks the second attempt at a deal between Titan and Damas. A previous round of negotiations, held a few years ago, floundered over valuation. The renewed talks indicate Titan’s continued interest in expanding its footprint in the West Asian jewellery market, aligning with its broader global ambitions.

“Valuation depends on the structure of the company and the bullion stock that Damas holds during negotiations,” said a veteran gold trade analyst. “If the bullion stock is low, the valuation will drop, and if the stock is high, the valuation will increase automatically.”

300-strong store network

Titan, Mannai, and Damas did not comment.

Damas was acquired in April 2012 by a consortium led by Mannai Corp and has since become its wholly owned subsidiary. Headquartered in Dubai, Damas is the leading jewellery retailer in the Gulf Cooperation Council (GCC).

“Mannai Corp has been looking to sell Damas for the past two years,” said a person familiar with the matter. “Earlier, discussions with two leading jewellers from south India did not materialize. Talks with Tanishq began a year ago, and the two parties are now negotiating Damas’ valuation.”

Tanishq, Titan’s jewellery brand, has been expanding its presence in the GCC region, having opened its flagship store at Dubai’s Gold Souk in January. It also has a presence in Doha, Sharjah, and Abu Dhabi. While Tanishq primarily caters to the Indian diaspora in the UAE, it has begun designing jewellery for other customers as well. Notably, it has introduced two collections inspired by Arabic motifs and customised store designs to suit local preferences, such as its boutique layouts in Qatar.

Titan’s jewellery division includes its flagship brand Tanishq, along with Zoya, CaratLane, and Mia by Tanishq. For FY24, the division reported a 20% growth in total income, reaching ₹38,353 crore. Beyond jewellery, the ₹58,447-crore ($6.73 billion) Titan has a diverse portfolio spanning wearables, fragrances, fashion accessories, and Indian apparel.

Founded in 1907, Damas operates 300 stores across the GCC and employs over 2,000 people. Its portfolio includes brands such as Graff, Djula, Roberto Coin, and Mikimoto, alongside in-house collections. In the third quarter of FY24, Damas reported revenue of 1,043 million Qatari riyals (₹2,487 crore) and a net profit of 3 million Qatari riyals (₹7 crore).

Industry experts said that if Titan acquires Damas, it will significantly strengthen Tanishq’s foothold in the GCC region. The potential acquisition aligns with Titan’s strategy to expand internationally, providing access to established luxury markets and diversifying its portfolio. The UAE is the world’s fifth-largest market for gold jewellery and has the second-highest per capita gold jewellery consumption at 5.07 grams, following Hong Kong, which leads at 5.12 grams, as of 2023.