Titan's acquisition of a majority stake in Damas opens the world's fourth-largest jewellery market, the UAE, for the Tata group company. Indian jewellery companies have been expanding their global footprint to cater to the diaspora, but the just-announced takeover adds a new market segment with distinct design and brand sensitivities. Unlike a previous wave of international acquisitions by the Tatas that aimed at a global footprint, the Damas deal has a narrower focus. It is designed to speed up growth for Titan in the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, where Damas has a 10-fold bigger retail presence than Tanishq. The size of the GCC market, however, is dwarfed by India's market for gold jewellery, which is rapidly switching to branded products. Corporate interest in the segment is intensifying, and regional players are acquiring a national - and even international - profile.

Titan is taking baby steps towards becoming a global jewellery brand, and there is reason for its caution. China is the only other gold jewellery market to rival that of India and would be a difficult one for a brand that is yet to establish itself internationally. Demand for gold jewellery falls off steeply beyond these two Asian countries, and acquiring a global presence would involve a combination of organic growth and small acquisitions for Titan.

There are obvious benefits to overseas acquisitions in harnessing a wider pool of design talent that can help Titan grow in its home market. Indian consumer behaviour is chasing premiumisation, and it helps to have strong domestic brands that can cater to this change. Branded jewellery is making inroads into semi-urban clusters where traditional artisans used to dominate until a few years ago. Enhanced disclosures around purchases and hallmarking of gold are speeding up the formalisation of the industry in India. Titan's international strategy is expected to provide synergies for its growth at home.