homebusiness Newscompanies NewsTTK Prestige closing in on a potential acquisition of around Rs 500 crore, says chairman
TTK Prestige closing in on a potential acquisition of around Rs 500 crore, says chairman
TTK Prestige's potential acquisition is a testament to the company's commitment to inorganic growth and its ability to adapt to changing market conditions. As it shifts some of its focus to the export market, TTK Prestige is well-positioned to capitalize on new opportunities and continue to be a leader in the kitchen appliances industry.
TTK Prestige, one of India's leading kitchen appliances manufacturers, is on the cusp of a potential acquisition worth Rs 500 crore, according to TT Jagannathan, the company's Chairman.
In an interview with CNBC-TV18, Jagannathan revealed that TTK is actively seeking opportunities for inorganic growth and is expected to close the Rs 500 crore acquisition deal in CY23.
“We are on the prowl and we are almost nearing destination, it is about Rs 500 crore,” he said.
The company currently has Rs 850 crore in cash on its books, and Jagannathan sees this as an opportune moment to explore inorganic growth opportunities.
"We are still market leaders in the pressure cookers segment by far. So there is no problem with competition. The market has slowed, particularly rural has slowed," he said.
Jagannathan admits that the pressure cookers category has slowed down, and rural areas contribute only 5 percent to the company's total sales at present.
Moreover, the rural penetration of pressure cookers is nearly zero. As a result, the domestic market, particularly rural, has slowed down. In response, the company is looking to shift some of its volume to exports where demand is stronger.
"Export orders are pouring in. Though we have increased the capacity dramatically, we are still unable to supply. We are shifting volumes from the domestic market to exports because domestic is slowing down,” Jagannathan said.
The company is optimistic about the potential for growth in the export market, given the high demand for its products.
Despite the challenges posed by the pandemic and the slowdown in demand in some segments, TTK Prestige remains confident in its ability to navigate these difficult times.
Also Read | TTK Prestige sees UK business go from bad to worse but hopes to end year with double-digit growth
The company's strong cash position, coupled with its market leadership in the pressure cookers segment, puts it in an excellent position to pursue growth opportunities both domestically and abroad.
TTK Prestige reported a weak quarter three of FY23 largely on the back of inflationary pressure and tepid demand scenario. The company witnessed 37 percent drop in exports market and domestic sales contracted by nearly 8 percent in quarter three.
The stock was up 1.61 percent in the last one week and down 0.93 percent in the past month.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
First Published: Feb 24, 2023 12:23 PM IST
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