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However, Damas continues to be a minority stakeholder in D’damas Jewellery India, a subsidiary of Gitanjali Group.
The global jewellery chain’s plan was to form a joint venture, Damas Gems and Jewellery, with Damas International owning majority stake. Damas International, which owns jewellery brands like Boudoor, Farasha, Fior and Hayati, was to bring in investment of Rs 180 crore to set up around 100 stores in India in three years. The jewellery and watch retailer has over 450 retail stores in 18 countries.
However, the group got into trouble in March last year after Dubai Financial Services Authority (DFSA) found out about alleged unauthorised transactions by Damas’ founding family members. According to reports, the promoter group members, the Abdullah brothers, were banned from the Damas board and the company was fined for not exercising corporate governance.
Since then, Damas’ India plans have been pending with neither the JV being formed nor the investment funds brought in. Lately, Damas has been consolidating its position in other parts of the world. According to industry sources, several Damas stores in West Asia have been closed.
“Damas does not seem to be going ahead with its plan to establish the brand in India. The plan was to form a 51:49 joint venture with us. They had received permission, but the JV has not been formed,” Mehul Choksi, chairman and managing director of Gitanjali Group told Financial Chronicle.
However, Damas still holds minority stake in D’Damas Jewellery India, the JV formed in 2003. The jewellery brands of D’damas are owned by the JV and are retailed through 450 points of sale, both standalone stores and shop-in-shops. Gitanjali Group had earlier evinced interest in raising its stake in the JV as the company has been driving the operations as the majority stakeholder.
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