TTK Prestige, one of the leading brands in the kitchen appliances market, is looking at acquisitions in Europe. The proposed exercise would help the company have an exclusive brand for the overseas market, according to its executive chairman T T Jagannathan. The size of the acquisition would be about Rs 300 crore, he added. “The idea is to acquire a European brand for the global market. It’s like Tata’s acquiring Jaguar,” said Jagannathan.
So far, nothing had come in the range of the company due to two reasons: affordability and return on investments, he said.
At present, four per cent of the company’s total turnover comes from exports. This year it is expected to touch five per cent, he added. In 2011-12, its sales, including excise duty, was Rs 1,122.7 crore, compared to Rs 775.6 crore, an increase of 45 per cent.
It has been enlarging its products through global firms to bring advanced product ranges and foreign brands through tie-ups.
It has concluded deals with World Kitchen, USA, which would enable it to enter the high-end tableware/cookware and storeware segments. TTK’s products would henceforth include foreign brands like Corelle, Corningware, Pyrex, Visions and Snapware. Except Corelle, all other products will carry the Prestige brand.
The initial arrangement is one of distribution. After gaining sufficient experience and volumes, a manufacturing joint venture may be set up for decoration of Corelle range of products and manufacture of Snapware range of storeware products. The sale of these products will commence during the first quarter of 2012-13.
TTK Prestige also concluded a business collaboration agreement with Vestergaard Frandsen Group of Switzerland. This will enable the company to enter the fast growing domestic water-filter segment.
The products will be made with the patented LifeStraw technology of Lausanne-headquartered Vestergaard. The products will be manufactured/assembled in India through TTK Prestige, and it will marketed and distributed by the company across the country.
The company also entered into agreements with Bialetti Industries Spa of Italy, whereby it has bought their pressure cooker and cookware manufacturing plants in Romania and Italy for installation in India.
Some of the machineries have already been installed and commissioned. The balance will be installed and commissioned in 2012-13.
Bialetti Industries is also outsourcing Stainless Steel Pressure cookers from the company. It also entered into outsourcing arrangements with their Indian subsidiary.