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Kitchen appliances major TTK Prestige, part of the Rs 2,500-crore TTK Group, may expedite its plans to buy an European cookware brand, as the company’s new, 50-million-unit, Gujarat facility is still underutilised.
The Rs 1,400-crore company has been on the lookout to buy a cookware brand in Europe to expand its presence in that market. “It’s a €2-billion market, and we have already been manufacturing products for brands such as Bialetti and Fagor there,” said T.T. Jagannathan, TTK Group Chairman. According to him, selling its products under its own brand would mean increased margins. He said the company currently gets only a 2 per cent margin in the OEM business. “If we own a brand there, the margin will go to 25 per cent.”
Though the company is yet to zero in on the candidate, he said this is the most appropriate time to buy European brands as they are available at a reasonable price now.
The company’s budget for the overseas buy is Rs 400 crore. “We at present have about Rs 100 crore cash on hand, and for the remaining we may go for debt,” said Jagannathan.
In India, TTK Prestige is the market leader in the Rs 12,000-crore kitchen appliances market. On Wednesday, it launched its 500th exclusive brand outlet — Prestige Smart Kitchen — in the country at Navalur in Chennai. At present, revenues from this retail model contribute 18 per cent of the company’s top-line.
“Our intention is to double the number of outlets in the next couple of years,” said Chandru Kalro, COO.
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