Damas’ Indian plans derailed

International jewelry brand Damas, which has been eyeing the lucrative India market,

and had plans of opening 100 stores in a joint venture with Gitanjali Group, has stalled this move. This decision was taken when the Dubai Financial Services Authority (DFSA) fined Damas and banned the jeweler’s founding family from executive positions. Damas has said it is yet to decide on the future of its business plans in India, as the group is restructuring its corporate governance model. According to Ibrahim Belselah, Chairman of Damas, they are looking at their business in Pakistan and India and the way they entered these countries. Within the new corporate governance, it’s not the best route to do business because they want to be absolutely transparent. It may be noted that in 2010, the annual gold demand in India reached 963.1 tons. As seen in the last decade, Indian demand for gold will be driven by savings and real income levels, and not by price, according to WGC estimates.

Damas is an international integrated jewelry and watch retailer operating in about 14 countries with around 424 stores. It is the leading jewelry and watch retailer in the Middle East, based on number of stores. The Group’s network of retail outlets includes subsidiaries predominantly in the Middle East, India and Italy with jointly controlled entities and associates in countries across the Middle East, Europe, North Africa and other regions. The Group’s stores offer their own branded products as well as products sold under leading global and regional luxury brands.