After diversifying into the home solutions space in 2016, TTK Prestige is considering strengthening its product range in this category and is planning to enter new verticals as well.
While it is launching 30 SKUs (Stock Keeping Units) with price points of Rs 300 to Rs 21,000 in the home cleaning range, other products in the electrical and non-electrical spaces are under discussion.
“We have been able to cover in the kitchen and home space with our products portfolio and will be focussing on categories in which the housewife is the decision maker. We have diversified into the home cleaning category and would like to tread our path carefully,” said Chandru Kalro, managing director at TTK Prestige.
Kalro didn’t specify the products or the new categories TTK Prestige is targeting, but sources said water purifiers are a potential foray.
Currently, cleaning solutions comprise only 3-4 per cent of the company’s total earnings but it is looking at increasing the contribution from this segment as well as from other segments like cookware and kitchen appliances, where it had diversified previously.
Its flagship product, the pressure cooker, now accounts for a third of its total revenue, down from the previous contribution of 40 per cent three years back. Appliances, cookware and home cleaning solution make up the rest.
Years back, the company had also piloted modular kitchens in Bengaluru, but quit it as it failed to have last-mile control.
“We can look at it again if we have the last-mile control now. Modular kitchen is not only about appliances but also involves the service of a plumber, carpenter, and others. We will re-enter this category as we figure out how to aggregate the requisite services,” Kalro said.
The company is of the view that the ongoing slowdown presents it with opportunities to gain market share in all the verticals it operates in and consolidate its leadership position.
It has a 26 per cent share in volume, and 34 per cent by value in the Rs 13,000-14,000 crore kitchen appliances, cookware and home cleaning market.
“In fact, the best growth period for the company was during 2008-2012 when economic conditions were muted. We will be innovating more, increasing visibility and expanding our distribution reach constantly to strengthen ourselves,” he said.
At the end of the last fiscal year, TTK Prestige had a total outlet count of 60,000 and it has already increased that by 10 per cent in the past seven months.
Kalro said though the company had muted growth for in the first two quarters, he sees a rebound in demand in the next 1-2 months. He believes TTK Prestige will end the current fiscal year with 10 per cent growth. This is in comparison to 12 per cent growth the company posted in the last fiscal year.
“In the rural market, growth has been flattish. Whatever growth we had, came in from the urban belt. However, monsoon has been good and I expect demand recovery from rural India soon”, he said.