TTK Prestige eyes European acquisition

This at a target size of around Rs 400 cr as a part of expanding its branded presence to overseas market

Kitchen appliances manufacturer TTK Prestige Ltd is looking for acquisition in Europe with a size of around Rs 400 crore, as part of expanding its overseas presence. The company is also looking at doubling its exclusive retail store, Prestige Smart Kitchen, to 1,000 in the next three years.

It gets 5 per cent of its turnover from exports, which is mostly from un-branded products to the original equipment manufacturers (OEMs). It plans to expand exports of branded products to increase the margin from the current two percentage to around 25 per cent through acquisition of a brand in Europe, said T T Jagannathan, chairman, TTK Prestige.

Speaking to reporters on the sidelines of announcing the launch of 500th smart kitchen and completion of 10 years of the retail model, he said, “The advantage of a European brand is you can sell the product worldwide. However, we have not shortlisted any company so far.” The investment would be from debt and internal accruals.

Its new cookware facility in Gujarat, which has a capacity of around 15 million, could cater to the European market, he said. It is also looking at OEM supply orders from European companies, he added.

It expects to stabilise imports at 15 per cent from the current around 20 per cent. For expansion in Tier-II and III towns, it would follow franchisee model, the company said. The Smart Kitchen, started with 18 stores in the first year of launch, has been expanding aggressively in the last five years with 60-100 stores a year.

The retail store business contributed 18 per cent to the turnover of TTK Prestige for the fiscal 2012-13.

It has a presence in around 260 towns in 23 states, and caters to over 6 million customers. Last year, it posted sales of around Rs 1,300 crore.