Titan Co., the Tata Group’s watch and jewellery arm, is in discussions with Qatar-based Mannai Corp to acquire a significant stake in Damas Jewellery, a leading retailer in South Asia, for Rs 4,500 crore, according to The Economic Times. While talks are ongoing, no agreement has been finalized.

This marks Titan’s second attempt to strike a deal with Damas after previous negotiations stalled over valuation concerns. The renewed discussions highlight Titan’s strategy to expand in the Gulf Cooperation Council (GCC) region, a key market for its international growth.

Valuation is contingent on Damas’ business structure and bullion stock, with a higher stock potentially increasing the valuation, according to an industry analyst.

Mannai Corp, which fully acquired Damas in April 2012, owns the company. Headquartered in Dubai, Damas is a prominent jewellery retailer in the GCC.

Titan’s jewellery brand Tanishq has been expanding its footprint in the GCC, opening a flagship store in Dubai’s Gold Souk in January and introducing Arabic-inspired collections in stores across the UAE and Qatar.

Titan’s jewellery division, which includes Tanishq, Zoya, CaratLane, and Mia by Tanishq, reported a 20% growth in income for FY24, reaching Rs 38,353 crore. Titan, valued at Rs 58,447 crore, operates across multiple sectors, including wearables, fragrances, fashion accessories, and Indian apparel.

Founded in 1907, Damas operates 300 stores across the GCC and employs over 2,000 people. The company carries luxury brands such as Graff, Djula, Roberto Coin, and Mikimoto alongside its own collections.

Acquiring Damas would strengthen Tanishq’s presence in the GCC market, aligning with Titan’s international expansion goals and providing access to established luxury markets. The UAE, where Damas is based, ranks as the world’s fifth-largest gold jewellery market and has the second-highest per capita gold jewellery consumption globally, after Hong Kong.