Ttk Prestige Plans Buy-Outs, Tie-Ups

At the same time, the company will take steps towards structural correction in working capital cycle to reduce the cost of borrowings.

"This will help us expand the product range in the domestic appliances segment and lead to large scale exploitation of the our brand potential and distribution reach," a highly placed company official said.

"Bringing about total transformation of the company will lead to enhancement in long term shareholder value," he added.

The other objective of the whole process is to orient itself towards faster customer-centric product development and responding to market dynamics, both domestic and external.

"We will also bring in greater flexibility in manufacturing and sourcing so as to be in tune with market requirements," the official pointed out.

 

While the board will take a final decision on the details of the revamp process shortly, another decision pending is pertaining to employees' stock option plan (Esop) and sweat equity.

Significantly, TTK Prestige, with 1000 employees, is amending its articles to enable the board of directors to consider the issue of Esop and sweat equity.

During the second half of 1999-2000, the company had faced a setback when industrial unrest affected the Hosur unit operations. This delayed the introduction of new models and products. In addition, some unexpected developments in the US market and competition from other countries forced the company to change the model mix. This led to a drop in exports by more than 40 per cent last year as compared to previous year, while the overall turnover fell by five per cent.

The volatility in the export market made the company redraft its strategy to build a stable customer base and strive for stable volume at competitive prices.

The company, known for its Prestige brand of pressure cookers, launched a range of flasks, Omega range of non-stick cookware and the pressure cooker Nugen towards the end of March 2000. "The full impact of these products on the company's financials will be reflected in the financial year 2000-2001," the senior official said.

Last year, TTK Prestige recorded a total income of Rs 140 crore against Rs 147 crore in the previous fiscal.