Titan receives approval from CCI to acquire further CaratLane stake

22 Nov 2023 , 01:42 PM

The Competition Commission of India (CCI), which oversees fair trade, approved Titan’s acquisition of a larger interest in CaratLane on Tuesday. CaratLane is an Indian company that manufactures and sells jewels and gems.

According to a release, the combination relates to Titan Company Ltd.’s acquisition of 27.18 percent of the share capital of CaratLane (a Titan subsidiary) from Mithun Padam Sacheti, Siddhartha Padam Sacheti, and Padamchand Sacheti on a fully diluted basis.

Titan, a joint venture between the Tamil Nadu Industrial Development Corporation (TIDCO) and the Tata Group, is involved in a number of lifestyle brands, such as fashion accessories, jewellery, eye care products, and fragrances.

The jewellery manufacturer Titan declared in August that it would buy an additional 27.18 percent for Rs 4,621 crore to raise its ownership to 98.28 percent in its subsidiary and modern jewellery brand CaratLane.

In 2008, CaratLane was founded exclusively online with an eye toward the rapidly expanding demand for accessible and reasonably priced jewellery.

Titan made its initial investment in CaratLane in 2016, and with the help of its jewellery brand Tanishq, CaratLane saw significant development over time.

The regulator must approve any transactions that exceed a specific level in order to prevent unfair business practices and to encourage fair competition in the market.

Titan’s market capitalization surged to Rs 3.01 lakh crore on Tuesday, as the company’s shares touched a 52-week high of Rs 3,400 apiece, up over 2% on the BSE.

The company’s market capitalization surpassed Rs 3 lakh crore, making it the 17th most valuable corporation in India. In the Tata Group, it is also the second-most valuable corporation, right behind Tata Consultancy Services (TCS).

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