Dubai: All options will be “placed on the table” when it comes to raising fresh capital for Damas’s medium-term expansion programme, according to the upscale jewellery retailer’s CEO. He was responding to a question as to whether Damas would consider a fresh listing on the stock markets.
“Every retailer of a certain scale requires capital to fund future expansion... but the means of how to do this can be decided only at the appropriate time,” said Anan Fakhreddin, the CEO.
Until its takeover by Qatar’s Mannai Group — a deal done in tandem with EFG Hermes for $445 million — Damas was listed on Nasdaq Dubai. The Mannai Group’s stake is currently pegged at 66 per cent — Fakhreddin declined to comment on whether the shareholder intends to raise the stake further.
On the financials, Damas is on track to achieve its best showing in terms of sales and profitability this year and follows a strong set of numbers in 2012, according to the CEO. (Post the delisting, Damas does not provide a break-up of its results and these are consolidated along with those of the Mannai Group. It has definitely put to rest the issues that had wracked the company when the original shareholders were in control of the management.)
Damas, meanwhile, is going live with a new retail strategy that has at its core the stated aim to be “famous international jewellery brand from Dubai”. This will mean getting into key markets in South Asia and, possibly, to the West as well.
Comfort zone
“The GCC has always been our comfort zone and with the new structure in place will keep an eye on new locations as they come through,” said Fakhreddin, who was specifically brought in to turn around the company and secure a new direction for it. “But it’s in the fashion-centric markets of the east and the west that future growth possibilities lie and we are using our in-house research to provide us with the ideal entry points.”
As for the existing store network, Damas intends to create a two-track structure. The ‘Damas’ outlets will showcase prestige international jewellery brands — it already has associations with Graff Diamonds — while the inventory at ‘Damas Collections’ will be dominated by in-house conceived designs. Both the formats will offer gold jewellery, diamonds and pearls, but the emphasis is decidedly going to be on catering to an upscale clientele base.
In terms of new openings, UAE will still get a major share with 28 stores in the pipeline. Saudi Arabia is to get six new ones, including one for Graff Diamonds in Riyadh.
