Cmp-5786
TTK Prestige is a 100% debt free 64 years old flagship company of the Chennai based TT Krishnamachari group of companies. The company is primarily engaged in the business of Kitchen and Home Appliances.
Established in 1955 at Chennai with technical collaboration from Prestige Group of the United Kingdom , TTK Prestige is among the leading brands in the kitchen appliances space with a wide range of product categories such as pressure cookers, cookware, gas stoves and domestic kitchen electrical appliances. The company has five manufacturing units all over the India. With the completion of capacity expansion, the capacity of the company for pressure cookers is around 9 million, cookware around 15 million and for some appliances such as rice cookers and induction cooktops it is about 1 million pieces.
The company is well diversified in terms of products as well as market presence. TTK has diverse product basket/offerings in the kitchen equipment/appliance portfolio, which includes cookware, appliances, gas stoves, mixer grinders, cleaning solutions, and modular kitchens. TTK’s Prestige is one of the strongest and trusted brands in the kitchen appliances space. In cookware market the company has a share of 35-40% in terms of value and in volume it is 4 times the size of its nearest competition. Similarly the company is market leader in value added gas stoves, industrial cooktops, kettle and electric rice cookers. The company is almost number 3 player in mixer grinders. The in-house product development team helps launch new products to expand the product base and improve overall efficiency.
Company has been continuously broad basing its product offerings, customer segments and geographical coverage. The company is moving towards premiumization because newer products have got better technology and will cost more.
In the last two years, the company has entered into product categories adjacent to the Kitchen. This adjacent space consists of several distinct product lines – Electrical and non-electrical cleaning products/ appliances, Water Purifies, Electric Irons, Lanterns, etc .Company has been actively expanding its business base and is successfully able to travel beyond kitchen and tap categories adjacent to kitchen and relevant to home at large.
From a run rate of 50 lakhs a month two years back, Company is currently clocking around 3 crores a month and by just tapping a few markets. Recently launched Tattva range of non-electric water purifiers, Vacuum Cleaners etc. have gained trade and consumer acceptance.
Company has been actively expanding its business base and is successfully able to travel beyond kitchen and tap categories adjacent to kitchen and relevant to home at large.
Off-late the company to cater to newer consumer segments within India as well as global markets, started utilizing the “JUDGE” brand, which belongs to the wholly owned subsidiary Horwood Homewares. This is a tactical brand and will be utilized to target consumer segments hitherto untapped by the company.
The UK subsidiary has added new range of products and also a new category called ‘Smidge’ focusing on environment friendly products suitable for home.
The company has over 2500 employees with 5 state of the art manufacturing plants ,2 dedicated Research and Development center and 1 data centre with major functions supported by a SAP ERP system.
TTK Prestige is ISO 9000:2008 certified as well as BIS certified company for Indian Product Standards. The company is also PED 97/23/EC TUV Certified Company for International Product Standards.
TTK GROUP-:
The TTK Group was founded in 1928 as an indenting agency.It was aim to cater distribution for a wide range of products ranging from Foods, Personal care products, Writing instruments, to Ethical products. Distribution for various brands like Cadbury’s, MaxFactor, Kiwi, Kraft, Sunlight, Lifebuoy, Lux, Ponds, Brylcreem, Kellogg’s, Ovaltine, Horlicks, Mclean, Sheaffer’s, Waterman’s & much more was established. Today the TTK group spans 30 product categories with 7 group companies and a turnover that cross 30 Billion rupees.
TTK Prestige Ltd. is the flagship company of the group.
Vision/Future Outlook-:
Company has been actively expanding its business base and is successfully able to travel beyond kitchen and tap categories adjacent to kitchen and relevant to home at large.
This vision is expansive as it does not limit the Company to one domain, one brand or one country. Driven by this wider Vision, Company has chalked out a plan to enlarge its home appliance base which includes tapping inorganic.
Company is slated to launch over 130 new SKUs across categories in FY 2019-20.
Company is confident about increasing export business. FY 18-19 saw a growth of 45% and further growth is planned for FY 19-20. The UK subsidiary is also actively pursuing opportunities outside the UK.
Financials
Key Ratios
- Company is 100% debt free.
- Company has cash equivalents of 24Cr Rs.
- Company has Reserves of Rs 1206 Cr.
- Operating ROCE improved to 37.5% from 32.5%.
- Compounded sales growth of company stands at 10% CAGR over 3 and 5 year Period.
- Compounded profit growth of the company stands at 12% and 17% over 5 and 3 year period.
- Operating profit margin for the company has also been increasing steadily that is from 12% in 2017 to 15% consistently over past two years.
BUY BACK-:
In 2017 the board of directors of TTK Prestige Limited has approved the buyback up to 1,00,000 fully paid-up equity shares of face value of Rs. l0 each of the company.
The buyback represents up to 0.86% of the total number of equity shares of the company at a price of Rs. 7,000 per equity share payable in cash for an aggregate amount of up to Rs. 70 crore.
Comments-:
The company continues to carry substantial free cash and is continuously seeking acquisition opportunities. TTK Prestige has introduced 33 new SKUs during the quarter and has several new product launches in the pipeline. Revival in rural channel growth would also provide a fillip for TTK
Segment Wise Classification-:
Website-: www.darkhorsestocks.in
