Leading watch and jewellery maker Titan on Friday created a new space on the online jewellery segment, acquiring a majority stake in online jewellery brand CaratLane for an undisclosed amount.
Leading watch and jewellery maker Titan on Friday created a new space on the online jewellery segment, acquiring a majority stake in online jewellery brand CaratLane for an undisclosed amount. The board of company approved the acquisition subject to due diligence. “Titan will acquire over 51% stake in the company and post the acquisition CaratLane will become a subsidiary of Titan Company,” said managing director Bhaskar Bhat.
The exact stake Titan will hold in CaratLane and the valuation are currently under discussion and details will be shared on signing of definitive documents. The transaction is expected to close by the middle of June, said Titan.
Titan will continue to focus on high-ticket jewellery through Tanishq, CK Venkataraman, CEO, said jewellery division of Titan.
“For Titan, the acquisition brings significant capabilities in the e-commerce space along with a brand, a customer segment and a business model that are very exciting,” Bhat said.
Founded in 2007, CaratLane is involved in the business of designing, manufacturing, trading and retailing of gems and jewellery in India through its e-commerce portal as well as physical stores. The company has also developed omni-channel capabilities and has currently 13 stores across the country with plans to ramp up the retail stores significantly in the future, a Titan statement added.
CaratLane also offers home trials for up to five jewellery items in various cities.
For the quarter ended March 2016, Titan reported a 14.41% decline in net profit to Rs 184 crore compared with Rs 215 crore a year earlier. Total income declined marginally by 1.6% to Rs 2,456 crore.
The quarter was extremely challenging for the company as it faced both weak market conditions for all businesses and new regulatory restrictions for the jewellery business.