The Hindu : Business : TTK Prestige to sell Chinese products

Online edition of India's National Newspaper
Wednesday, Feb 01, 2006

Business

Business

TTK Prestige to sell Chinese products

Staff Correspondent

To expand the Prestige Smart Kitchen range To expand the Prestige Smart Kitchen range

To increase retail outlets The company will tap markets in the Far East, West Asia and Africa Coimbatore factory to be aloperation in April

— Photo: Vivek Bendre

TO WIDEN RANGE: T. T. Jagannathan (right), Chairman, TTK Prestige, and S. Ravichandran, Managing Director, addressing a press conference in Mumbai on Tuesday.

MUMBAI: TTK Prestige has drawn up plans to move from being a largely one-segment company to straddling the entire kitchenware segment. The company has drawn up a strategy to introduce high-end appliances and new products imported from China. By the end of the current year, the company will launch chimneys, hobs, rice cookers and microwave ovens. It will also introduce small appliances like kettles, toasters and food processors.

"In 2006-07, our strategy is to operate in the entire pressure cooker range with Nakshatra to aggressively expand the Prestige Smart Kitchen (PSK) range in non-South markets and launch Prestige Smart Boutiques across select 6-7 metros,'' said S. Ravichandran, Managing Director, TTK Prestige.

From 72 retail outlets, the company planned to expand to 150 across India by March 2007, largely in the North and East markets.

To diversify product mix

Also, from being overwhelmingly dependent on pressure cookers to the extent of 65 per cent last year,

TTK's product range moved towards other products and in the nine months ended December 2005, pressure cookers accounted for 61 per cent. "Our aim is to take this to a 50:50 contribution over the next three years,'' said Mr. Ravichandran.

Exports accounted for about 10 per cent of the company's revenues. The company was moving to expand its portfolio through its subsidiary in the U.S. and to tap markets in the Far East, West Asia and Africa. "Exports should go up to 15 per cent of sales in the next few years,'' said T. T. Jagannathan, Chairman, TTK Group.

TTK Prestige has established a new factory in Coimbatore, which will be operational from April. It plans to invest Rs. 20 crore in the next 12-24 months in establishing new manufacturing facilities including a facility in Uttaranchal or Himachal Pradesh.

Also, over the next two years, the company plans to invest Rs. 50 crore in brand building nationally.

For the quarter ended December 2005, it reported a net profit of Rs. 3.17 crore (Rs. 1.64 crore) on sales of Rs. 77.06 crore (Rs. 61.48 crore).

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