The Euro 3 billion (about $4 billion) German speciality glass producer and technology company Schott AG, which has entered into a strategic tieup with TTK Prestige, now sees sales of about Euro 30 million from India from all its business tieups. The exclusive tieup with TTK Prestige allows for the introduction of a range of cooking appliances under the brand of ‘Premia’.
The 125-year-old German firm, which entered India in 1998, has tieups for the supply of medical glass vials for pharmaceutical industry, and also with solar photovoltaic cell manufacturers. “We offer our products to a very exclusive group of customers and we have been looking everywhere in the country for the right partners,” said Jorg Wingefeld, Director-Sales, Schott, adding “we see a lot of potential in areas where we can grow. In photovoltaic there is a very great potential and India has a lot of sun.”
Schott hopes to increase its business from India to a great extent, with possible plans to set up a plant in India. As of today, it imports most of the finished specialised glass from China. The Chinese plant, in turn, is supplied the raw materials for making the special glass from Germany.
“We offer products in a market when it is ready. Now is a good time,” said Wingefeld, adding “Now Indians have matured to use the glass ceramic topped cooking appliances as incomes are rising and modular kitchens are growing in popularity. So, we believe it is a perfect timing for us to introduce the material here.”
Much of the material supplied to India is manufactured in China. In China, Schott has a manufacturing plant which meets the demand from China’s neighbourhood for Schott’s products. With the Rupee weakening, though, imports are turning out to be costly. The firm is studying the Indian market for the possibility of expanding its engagement with Indian market depending on the potential of the market.
Products of Prestige that use Schott’s glass will sell at a premium of 18 per cent to 20 per cent with the products costing Rs 5,000 to Rs 10,000. Prestige has been feeling the pressure of the falling Rupee on products that need imported inputs. “As of now the company is partly absorbing the cost pressures resulting from the currency fluctuations,” said Chandru Kalro, Chief Operating Officer, TTK Prestige Ltd.
Meanwhile, TTK Prestige is tying up with Vestergaard Frandsen, a Swiss firm which is into water filtration technology. The company could in the near future launch water filters using the technology, added Kalro.
The TTK Prestige Ltd stock was trading at Rs 2,955, up by Rs 29.80 or 1.02 per cent. The stock hit an intraday high of Rs 2,979 and low of Rs 2,915.
