Commodity Online
DUBAI: Beware, jewellery stores in India! Competition is coming from Dubai soon. In a bid to tap India’s lucrative jewellery market, retailing giant of Dubai — Damas International — has decided to set up around 60 shops in India in the next five years.

The attempt will be a joint venture with Gitanjali Gems of India. According to a press note, Damas said in a regulatory filing it won approval to set up a joint venture with diamond and jewellery maker Gitanjali to trade jewelleries and related accessories.

“Damas International proudly announces that Ms/ Damas LLC, its hundred per cent subsidiary company, has obtained the approval of the Indian Foreign Investments Promotion Board to set up a joint venture company with 51% equity participation to undertake the business of single brand retail trading in India,” Damas said in the press release.

The partnership will see Damas opening 50 to 60 retail outlets over the next three to five years.

The companies will jointly invest up to Rs 3.5 billion the minimum requirement by the Indian government. The establishment of the company, in which Damas will hold a 51% stake, will be finalised soon.

The new venture will open stores under the original Damas brand, and stock only the UAE company’s jewellery collections.

Details are still being worked out but Damas expects to open four stores in Mumbai and four shops in Delhi this year. The retailer aims to generate Rs 1,000 cores in revenue in three to five years.

Damas’ first created a joint venture with Gitanjali in 2005 for a series of franchise stores under the D’damas brand largely stocked with Gitanjali products.

Gold and jewellery sales in the UAE have fallen this year, with April’s sales down as much as 40% in Dubai and 15% in Abu Dhabi.

The Damas Group has 515 stores in 18 countries around the world, as at 31st December, 2008. It has an extensive retail network with stores primarily located in Middle East, South Asia, Europe and North Africa.