TTK Prestige to invest Rs 70cr

To launch a national brand building exercise

Bangalore-based TTK Prestige plans to invest Rs 70 crore for its foray into new markets. It will invest Rs 20 crore in setting up new manufacturing facility at Uttaranchal or Himachal Pradesh and Rs 50 crore towards a national brand building exercise.

According to the company's announcement to the exchanges, these investments are to be made in 12-24 months.

To mark its foray into rural markets, it is establishing exclusive Prestige Smart Kitchen retail stores in two rural areas in Karnataka "" Kunigal and Kollegal. One store is being established through self help groups.

"This pilot venture yielded encouraging results. In future the company is planning to expand this strategy and tap the potential of rural markets through exclusive retail stores," said the note.

To tap the modular kitchen market, the company has devised a retail format and has made soft launch as part of Prestige Smart Kitchen chain in select outlets in Bangalore.

The company now plans to establish a separate retail chain for exclusively selling a wide range of modular kitchens involving higher level of investments. This exclusive kitchen retail chain will be established under the name and style 'Prestige Kitchen Boutique'.

To capitalise on the opportunity, the company plans to aggressively increase the number of exclusive retail outlets - Prestige Smart Kitchen and to take the number of outlets to 150 across the country by March 2007 largely in the north and eastern markets. As of December 31, 2005 the company had 72 retail outlets.

The company has already made progress in sourcing high end appliances from China. It will introduce many new categories of electrical appliances that have potential in modern kitchens.