Competition Commission Approves Titan's Acquisition of Majority Stake in CaratLane

Competition Commission Approves Titan's Acquisition of Majority Stake in CaratLane

The Competition Commission of India (CCI), India's antitrust regulator, approved on November 21 for Titan's acquisition of an additional stake in CaratLane, a leading omnichannel jewellery retailer in India. This approval paves the way for Titan's increased control over CaratLane, further expanding its presence in the Indian jewellery market.

This acquisition involves Titan Company Ltd. purchasing an additional 27.18 per cent of the fully diluted share capital of CaratLane, a subsidiary of Titan, from Mithun Padam Sacheti, Siddhartha Padam Sacheti, and Padamchand Sacheti, as per a recent press release.

Titan, a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), is a diversified lifestyle company with a portfolio of well-established brands spanning various categories, including jewellery, eyewear, fragrances, and fashion accessories.

Titan currently holds a majority stake of 71.09 per cent in the total equity share capital of CaratLane. The proposed acquisition of 91.9 lakh equity shares will further solidify its position, increasing its ownership to 98.28 per cent. This significant increase in ownership will grant Titan greater control over CaratLane's operations and strategic direction.

In a move to further solidify its dominance in the Indian jewellery market, Titan announced plans in August to acquire an additional 27.18 per cent stake in its subsidiary for a staggering ₹4,621 crore.

CaratLane was launched in 2008 as an online jewellery brand, with the aim to capitalise on the burgeoning demand for affordable and accessible jewellery in the Indian market.

Titan's initial investment in CaratLane in 2016 marked the beginning of a fruitful partnership that fuelled the latter's substantial growth over the years. The synergy between Titan's established brand, Tanishq, and CaratLane's digital agility proved to be a winning combination, propelling CaratLane's success in the Indian jewellery market.

Mergers and acquisitions exceeding a predetermined threshold require the approval of the Competition Commission of India (CCI), which safeguards against unfair business practices and fosters a competitive market environment.

Surpassing the ₹3 lakh crore market capitalization milestone, Titan ascended to the position of India's 17th most valuable company in terms of market capitalisation. Titan now stands as the second most valuable company within the Tata Group, second only to the IT giant Tata Consultancy Services (TCS).