Damas lines up Rs 250 crore for gold malls

Damas, the Dubai-based international gold and jewellry network, is planning to invest over Rs 250 crore in India to set up 25 gold malls in 12 cities.

Tawhid Abdullah, managing director of Damas and chairman of Dubai Gold and Jewellry Group, said the groundwork has already begun and the project will be completed in 2006.

"Damas is planning to invest $1.5-2 million for each mall in the beginning. Further expansion will be on the basis of the performance. Cities such as Mumbai, New Delhi, Banglore, Chennai and Kolkata will have two or three malls each. As India is the growing market for gold and jewellry, no international chain can ignore the country," Abdullah told Business Standard.

Damas has had association with top international brands for many years now.

The group has 250 malls across the world. More than 50 international brands like Carrera Y Carrera, Laurentia, Baraka, Mikimoto, Fope, Chimento, Faberge, Pomellato, Roberto Coin and Scavia are in tie-ups with Damas.

The company also houses some of the major brands in the watch segment such as Chanel, Chaumet, Bell and Ross, Barthelay, Omega, Waltham, Montega, Bedat and Co, Vacheron Constantin and Marina B.

"A new collection of signature-branded gold jewellry has been planned, especially for the Indian market. We are working towards introducing new designs, which suit the Indian concept," Abdullah said.

India is the largest consumer of gold, accounting for 800 tonne per year.

"Despite gold's surge to the $520 an ounce level, demand for the metal is still at peak. Prices will be high for one more month because of the speculative buying by Japan and oil-rich countries. The prices should stabilise at the $450-460 (an ounce) level," he said.

Damas has grown and expanded in a big way since its inception in 1907. Today, it has a trade network spanning throughout the world, and has outlets in the US, Lebanon, Qatar, Jordan, Maldives, Bahrain, Kuwait, the Sultanate of Oman and across all the Gulf Cooperation Council countries.

Dubai Gold and Jewellry Group is the major sponsor of the upcoming Dubai Shopping Festival 2006. The group is offering 143 kg of gold for the winners of the competitions in the festival.