Titan adds CaratLane to jewellery collection

The 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, Titan said in a BSE regulatory filing.

Founded in 2007, the Chennai-based CaratLane is an online e-commerce jewellery company targeting young customers. It has been growing in personal and gifting jewellery in the low-ticket jewellery segment.

Titan will continue to focus on high-ticket jewellery through Tanishq, CK Venkataraman, CEO, jewellery division of Titan told analysts in a call.

“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.

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 currently has 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 per cent decline in net profit to Rs 184 crore compared with Rs 215 crore a year earlier. Total income declined marginally by 1.6 per cent 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. FE

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