Ttk Prestige Takes Stake In Us Arm Manttra To 100%

TTK Prestige, which was holding 40 per cent equity in the US company, acquired the balance 60 per cent recently from TTK Healthcare.

Manttra Inc, which commenced operations in July 1998, is a distribution company. But the equity was divided between the two group companies, TTK Prestige and TTK Healthcare, a senior company official told Business Standard.

The US company has now become the 100 per cent subsidiary of TTK Prestige. The TTK group flagship secured the approval from the Reserve Bank of India (RBI) in this regard.

Last year, Manttra Inc shifted its operations to a dedicated warehouse at Virginia Beach in the state of Virginia as the location is considered to be more convenient and economical in terms of logistics and customer service. All these costs resulted in this subsidiary registering some losses.

 

Based on the volatility experienced in the export market, TTK Prestige has redrafted its export strategy to build a stable customer base and strive for stable volume at competitive prices.

Last year, the US market underwent certain unexpected developments requiring changes in model mix as well as competition from other countries. This led to a drop in company's exports by more than 40 per cent in 1999-2000 compared with previous year, while the overall turnover fell by 5 per cent.

The company, known for its Prestige brand of pressure cookers, launched a wide range of flasks, Omega range of non-stick cookware and the new model 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.

Meanwhile, TTK Prestige has decided to go in for acquisitions and alliances and divest non-core assets as part of a massive transformation programme for which a consultant will be appointed shortly.

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

One of the objectives of the whole process is to orient itself towards faster customer-centric product development and responding to market dynamics, both domestic and exports, as a result of increasing external liberalisation. This is expected to bring in greater flexibility in manufacturing and sourcing so as to be in tune with market requirements.