TTK Prestige, the leading kitchen appliances maker, is set for a makeover to an advanced cookware seller.
It is entering various joint ventures and alliances as part of a plan to launch various high-end global cookware brands in India. According to sources, a joint venture with Meyer, a large US-based cookware company, and a partnership with Vestergaard Frandsen, a leading water purifier maker, are likely to be announced soon.
Says K Shankaran, director & secretary, “We are operating at the middle of the pyramid and are in the process of moving into the top, by marketing popular foreign brands in India. We are in discussion with Meyer to market their advanced cookware brands.” On the JV plans, “It is premature to say,” was all he’d disclose.
TTK already has been selling Meyer products in India and in Sri Lanka, West Asia and Africa. Meyer’s product portfolio also includes known global brands such as Anolon, Circulon, Farberware, KitchenAid, SilverStone and Bonjour.
Arvind Singhal, chairman of retail advisory firm Technopak Advisors, said: “Kitchens and cooking preferences are being changed drastically in India. Apart from youngsters who are keen on cooking as a hobby, the changed palate of the middle-class is another reason for increasing demand in advanced cookware. People are ready to try all kinds of Chinese, Thai, Japanese and even Italian food in India. The changed phenomena push all appliance majors to expand business."
A recent report from Fairwealth Securities said, “There is a lot of scope left for growth in kitchen appliances and the cookware segment, as both are at nascent stages as compared to the pressure cooker segment, which is more mature now. TTK Prestige has been able to achieve strong growth over the past few years due to frequent product launches, especially in the appliances segment.”
Following a rumour in the market that Philips was buying a stake in TTK Prestige, shares of the company touched an all-time high of Rs 3,244 per share on the Bombay Stock Exchange last month. Later, the management said there was no truth in it.
Last year, TTK Prestige had announced plans to buy Italian firm Bialetti’s ailing Indian unit, called Triveni Bialetti Industries, to expand production capabilities.
Apart from the JVs with their Indian counterparts, global players are strengthening their Indian presence through the merger and acquisition route. French home appliance maker Groupe SEB’s acquisition of 55 per cent in Maharaja Whiteline and global major Philips' buyout of Maya Appliances that sells its products under the Preethi brand are examples.