Titan to acquire majority stake in Dubai's Damas Jewellery for $282 million
- Titan Holdings International, backed by Tata Group, announced an agreement to acquire a 67% stake in Dubai’s Damas Jewellery for $282 million in early 2023.
- The acquisition involves Titan gaining access to 146 Damas stores across six Middle Eastern countries, aiming to tap into robust demand for jewelry.
- This significant move represents Titan's strategy to expand beyond the Indian diaspora into diverse markets with a strong focus on the GCC.
In a significant investment move, Titan Holdings International, a unit of Titan Company from India, has made an agreement to purchase a 67% stake in Dubai-based Damas Jewellery for 1.038 billion dirhams, which is approximately 282 million US dollars. The acquisition deal was announced in early 2023, reflecting Titan's ambitions to expand more aggressively in the Gulf Cooperation Council (GCC) region and beyond. The stake acquisition will be funded through a mix of internal cash and debt, allowing Titan to strengthen its presence in a market known for high demand for jewelry. This strategic acquisition places Titan in a favorable position as it will gain access to 146 Damas stores across key markets including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The company sees substantial growth opportunities in these regions, which are marked by a rising demand for luxury goods, particularly jewelry. The general view within Titan Company is that this acquisition will mark a pivotal shift, helping the brand reach out to diverse nationalities and customer segments, rather than focusing solely on the Indian diaspora as it has done previously. Titan Company, founded in 1987 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation, has made significant strides in the retail jewelry business since it entered the GCC market by launching its first Tanishq store in Dubai in 2020. This reflects the broader ambition of the Tata Group, a powerhouse in various industries led by visionary leaders like Ratan Tata, to continue evolving and adapting to new markets and consumer bases. The completion of this acquisition is still pending regulatory approvals, a typical requirement in cross-border mergers and acquisitions. The ambition of Titan to purchase the remaining stakes by the end of 2029 signifies long-term planning and commitment to establishing a significant footprint in the Middle East. Overall, the move reflects Titan's focus on global expansion strategies, aiming to tap into the burgeoning luxury market driven by a diverse and affluent customer base across various countries in the Gulf region.