Titan Plans Gulf Shift in Manufacturing Amid US Trade Tensions

• Titan may shift manufacturing to the Gulf to avoid high U.S. tariffs
• Acquired Dubai-based Damas for $283M to support expansion
• U.S. seen as costly and less viable for jewellery production

Titan, India’s largest jeweller and watchmaker and a member of the Tata Group, is considering shifting part of its manufacturing to the Gulf region to ensure it remains well placed with access to the U.S. market, as trade relationship tensions rise between Washington and New Delhi.

Managing Director C.K. Venkataraman indicated that over the past few months, they have been looking at the Middle East and Dubai as part of their ongoing search for suitable manufacturing bases to avoid the increasing U.S. tariffs on Indian items.

This potential shift comes right after Titan announced it had acquired a majority stake in U.S.$283 million in Dubai luxury retailer Damas, which has 146 stores in the Gulf. Venkataraman mentioned it "as a manufacturing base to export to the U.S."

His comments illustrate the ways businesses across the globe are changing with changing geopolitical and trade policy. These businesses are finding new ways to take advantage of mounting tariffs.

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For instance, last month, the U.S. slapped a surprise 25% tariff on imports from India, citing issues with India's purchase for Russian oil at all. Elsewhere, in the United Arab Emirates, current tariffs are lower than the normal 10% tariffs as a result of U.S. trade issues.

Titan's strategy to expand its presence in the U.S. under its Tanishq brands, including its newer diamond brand, CaratLane, which launched in North America in October.

Venkataraman indicated that even though talks to purchase Damas began earlier in 2024, prior to seeing current policy changes by the U.S, he was going to move production to a Gulf Cooperation Council country to lessen the tariff impacts.

He also said that even reducing costs by moving production to the U.S. when possible is a stretch with high costs and evidence of lacking skilled artisan labor, adding, "If the tariffs remain like what they are currently threatened to be, then any arbitrage on a tariff ... any significant arbitrage would be meaningful for us to consider".