Titan shares in focus as company acquires 67% stake in UAE-based Damas Jewellery

The Gulf Cooperation Council (GCC) consists of six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

In its press release, Titan Company said, "Titan Company, through its wholly owned subsidiary Titan Holdings, has entered into an agreement for the sale and Purchase of Shares ('Definitive Agreement") to acquire a 67% stake in Damas LLC (UAE) CDamas LLC'", the current holding company for the Damas jewellery business in GCC countries (Damas Business") from Mannai Corporation (Mannai") ("Proposed Transaction'")."

The current Graff Monobrand franchisee business of Damas LLC will be discontinued before completion of the proposed transaction. The consideration for the proposed transaction is arrived at on the basis of the enterprise value of AED 1,038 million.

On completion of the acquisition, Titan Holdings would hold 67% of the equity share capital and voting rights in Damas LLC and a path to acquire the balance 33% stake from Mannai after 31st December 2029, subject to conditions agreed upon in the definitive document, the press release added.

Titan added the proposed transaction is strategically significant for Titan's jewellery business as it will facilitate the expansion across the 6 GCC countries.

The region is exhibiting robust economic growth, creating a demand for differentiated, high-quality offerings rooted in Arabian aesthetics and appealing to sophisticated clientele seeking unique, culturally resonant designs, it added.

About Damas Jewellery

Damas Jewellery was founded in 1907. It is headquartered in Dubai, UAE, and stands as the Middle East's premier jewellery retailer. With a network presence of 146 stores across the 6 GCC countries, Damas today houses a rich and curated portfolio of in-house collections alongside prestigious international labels, the press release said further.

What companies say

Commenting on the acquisition, C.K. 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."

The MD 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 chains."

Alekh Grewal, Group Chief Executive Officer 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. and we are confident that the combination of Damas powered by Titan will drive Damas in the next chapter of its growth trajectory in the GCC."

About Titan Company

Titan Company Limited ("Titan"), a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into jewellery (Tanishq) and subsequently into eye care.

Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories, including fragrances (SKINN), accessories and Indian dress wear (Taneira) and designer women's bags (IRTH).

What analysts say on acquisition

Morgan Stanley has given a thumbs up to the acquisition. It notes that the acquisition of Damas is at a reasonable valuation and that this would help in expansion across GCC countries, targeting nationalities and ethnicities other than the Indian diaspora.