TTK Prestige to unlock realty holding in Bangalore

TTK Prestige plans to unlock its real estate holding in Bangalore.

According to an official, the company's board of directors at its meeting had decided to develop the property in Bangalore and has initiated moves to appoint a property consultant.

The Bangalore-based kitchen appliance maker has a huge facility on Old Madras Road and plans to begin its manufacturing in the next 12 months.

"The company has engaged international consultants to advise it on developing the property and share revenues in the best interests of the shareholders," the official said.

Also, TTK Prestige's board has recommended a dividend of Rs 2.50 per share.

Earlier this year, the company announced its plans to invest Rs 20 crore to set up a manufacturing facility in Uttaranchal or Himachal Pradesh and implement ERP solutions on SAP platform to cover its manufacturing, sourcing and managing retail stores.

The company is likely to re-invest its real estate proceeds to support its entry into newer markets and release new products. TTK Prestige also plans to invest Rs 50 crore in brand-building exercise nationally.

Besides, a separate retail chain exclusively for selling a wide range of modular kitchens involving higher levels of investments is also on the cards. 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 increase its 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, it had 72 retail outlets.

At present, the company operates 11 stores in Mumbai, five in north India and 40 stores in south India "� 18 in Tamil Nadu, 13 in Karnataka, five in Andhra Pradesh and four in Kerala.

The company has already made good progress in sourcing high-end appliances from China.

It will introduce many new categories of electrical appliances for modern kitchens.

TTK Prestige is also banking on its innovation strategy "� that of introducing more designs and products every year. In the last three years, the company introduced 160 products and these account for for 80 per cent of the sales today.