Titan Increased its Stake in CaratLane by 27.18% which is worth Rs 4,621 crore., now Titan has a total 98.28% stake in CaratLane.
In a strategic move aimed at strengthening its position in the jewelry industry, India’s leading conglomerate, Titan, is set to increase its ownership in its subsidiary CaratLane. Titan purchase of an additional 27.18% stake for a whopping Rs 4,621 crore will increase Titan’s stake in Caratlane from 71.09% to 98.28%.
Closing the deal.
The transaction was disclosed in a recent regulatory filing by Titan on Saturday. According to the filing, Titan has entered into a share purchase agreement with Caratlane founders Mithun Sacheti and Srinivas Gopalan. The deal calls for the acquisition of the entire 27.18% shareholding held by the founders, further strengthening Titan’s hold on the jewelry retailer.
A positive outlook for the future.
This acquisition reflects Titan’s confidence in the potential growth of the jewelry market. Titan Managing Director C.K. Venkataraman expressed optimism about the acquisition, noting that Titan is dedicated to cultivating strong brands that are leaders in their respective categories. Venkataraman emphasized the company’s confidence in Caratlane’s ongoing growth trajectory and its promising future.
Caratlane journey and milestones.
Founded in 2008 as an online jewelry brand, Caratlane has quickly established itself as a major player in the industry. Having initially invested in Caratlane in 2016 with holding a 60% stake, and has progressively increased its ownership over the past eight years. Titan has witnessed substantial evolution and growth of the brand. Over the years, Caratlane has entered into a strategic partnership with Titan’s jewelry brand Tanishq, which has contributed to its success. Caratlane also extends to the United States through its subsidiary.
Evolving Market Dynamics.
The jewelry retail landscape has changed significantly in recent years, with e-commerce gaining momentum. Caratlane has successfully navigated these dynamics, becoming one of the largest omni-channel jewelers in India. With a presence in 66 cities through 165 retail stores, Caratlane success underlines its flexibility and adaptability.
Imminent completion and financing.
In the financial year 2022-23, Caratlane Trading achieved a turnover of Rs 2,177 crore, a significant increase from Rs 1,267 crore in the previous financial period. The acquisition is expected to be completed by October 31, 2023, subject to requisite regulatory approvals specifically from the Competition Commission of India. Funding for the acquisition will be obtained from a combination of cash reserves, internal accruals, and borrowings.
Strengthening the journey.
Taking Titan’s stake in Caratlane to 98.28%, the acquisition reinforces Titan’s commitment to reshaping the jewelry market and bringing innovation to the sector. The acquisition’s potential to expand the position of both brands in the jewelry sector is a testament to the Tata Group’s enduring entrepreneurship and its ambition to be at the forefront of industry development.
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