Titan to Buy Rest of CaratLane for ₹60 Crore: Jewelry Industry News

Titan Company announced on Tuesday the finalization of a deal to acquire the remaining 0.4% stake in its subsidiary CaratLane, equivalent to 1,19,489 shares. After this acquisition, CaratLane will become a wholly owned subsidiary of Titan. The transaction valued at over ₹60 crore, is scheduled for completion by the end of March.

Titan's Journey with CaratLane

In 2016, Titan Company first acquired a 62% ownership stake in CaratLane for ₹357.24 crore. Over the years it has steadily increased its shareholding with an acquisition last year of an additional 27.18% stake for ₹4,621 crore. This strategic move highlights Titan's commitment to strengthening its position in the jewelry market.

CaratLane reported a turnover of ₹2,177 crore for the fiscal year 2022-23. Its income rose 32% reaching ₹893 crore for the quarter ending in December. This growth trend has been consistent with revenues rising from ₹723 crore in FY21 to ₹1,267 crore in FY22. In the last quarter alone CaratLane expanded its footprint by opening 16 new stores bringing its total store count to 262 across 105 cities nationwide.

Founded in 2008 under Titan's initiative, CaratLane aims to provide jewelry that is accessible, affordable, and timeless. Its expansion and consistent growth reflect its commitment to providing quality products and exceptional customer experiences.

Titan's Jewelry Division Performance

Despite challenges in various consumption sectors Titan's jewelry division recorded a remarkable 20 percent yoy revenue growth for the December quarter. Management remains confident in achieving 20 percent annual growth in the foreseeable future.

In the past month Titan's stock has faced a decline of 6.73%. Over the past six months it has seen an increase of 18.30%. Looking at the past year the stock has surged by 52.00% while over the past five years it has witnessed a remarkable growth of 253.12%. At the time of writing the stock price of Titan is down 1.29% on an intraday basis the stock reached a high of ₹3669 but is currently trading at ₹3613.

Final Words

With the completion of the stake acquisition Titan is poised to further consolidate its position in the jewelry sector. The company's continued focus on innovation, customer centric approach, and strategic investments position it well for future growth and success. By maintaining its stake in CaratLane and leveraging its expertise Titan aims to capitalize on emerging opportunities and drive sustained value for its stakeholders.