Welcome to TTK
The TTK Group
Indian roots, Global Reach
Mission of the group
To provide quality consumer products at affordable prices
Core values of the group
Trust, Transparency and Knowledge
Diversified Group Structure
TTK Prestige Limited
Incorporated in 1955.
India’s largest kitchenware company.
• IPO in 1994.
• 1500 strong human capital
• Two brands in the portfolio. Prestige and Manttra
• 8 Manufacturing units
• Captive design and tool‐room facilities
• Versatile distribution network
A unique combination of strong manufacturing, design and marketing systems.
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Paid up capital Rs. 113 million , 10000
shareholders
Board of Directors/ Management
Promoter Directors
• Mr. TT Jagannathan – Executive Chairman • Mr. TT Raghunathan – Vice Chairman
• Dr.(Mrs)Latha Jagannathan
Executive Directors
• Mr. S. Ravichandran – Managing Director
• Mr. K. Shankaran – Director (Corporate Affairs)
Independent Directors
• Mr. Ajay I Thakore
• Mr. R. Srinivasan
• Mr. Arun Thiagarajan
• Dr.(Mrs) Vandana Walvekar
• Mr. Dileep Kumar Krishnaswamy
Well balanced Board
Sub Board level
– Mr. Chandru Kalro – Executive Vice President (Marketing)
– Mr. V. Sundaresan – Vice President (Finance) & CFO
– Mr. H.T. Rajan‐ Chief Manufacturing Officer
Vision and Values
CORE VISION
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A Prestige in every Indian Kitchen
CORE VALUES
Quality products at affordable prices
Trust, Transparency, Knowledge and “Prestige” in whatever we
do
Fair dealings with every stakeholder
Respect for Environment
CORE STRATEGY
Providing Total Kitchen Solutions rather than just a product
THE JOURNEY SO FAR
1955 – INCORPORATION
1959 – FIRST MANUFATURING UNIT IN BANGALORE
1981 – SECOND MFG UNIT IN HOSUR ‐ TAMILNADU
TILL 1990 – A SINGLE PRODUCT COMPANY – JUST ALUMINUM OUTER LID PRESSURE COOKERS – DOMINANT IN SOUTHERN INDIA
• 1990‐94‐ LAUNCH OF SS PRESSURE COOKERS AND NON‐STICK COOKWARE
• 1990s ‐ EXPORT THRUST –LAUNCH OF MANTTRA BRAND
• 2000‐2003 ‐ PERIOD OF TURBULANCES ‐ YET BOLD INITIATIVES LAYING THE FOUNDATION FOR BRAND EXTENSION AND EXPLOSIVE GROWTH ‐ THE UNLEASHING OF THE BRAND AND PEOPLE POWER
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……the journey so far
• THIS PERIOD SAW THE LAUNCH OF STOVES AND APPLIANCES AND THE MAJOR MARKETING INITIATIVE OF EXCLUSIVE RETAIL NETWORK – PRESTIGE SMART KITCHENS
• 2006 – LAUNCH OF WELL DIFFERENTIATED INNER LID PRESSURE COOKERS ‐ NEW CAPACITIES IN UTHARKAND AND COIMBATORE
• 2006‐ 2010 – TRANSFORMATION INTO A TOTAL KITCHEN SOLUTION PROVIDER LEAD BY INNOVATIONS LIKE INDUCTION TOPS, APPLE COOKERS,MICROWAVE PRESSURE COOKERS AND A HOST OF APPLIANCES
• 2010 – 11 ADOPTION OF A SIMPLE BUT POWERFUL VISION –
“ A PRESTIGE IN EVERY INDIAN KITCHEN “
• 2011 ‐ LARGEST CAPACITY EXPANSION INTITIATIVE TO BACK THE ABOVE VISION
THE PATH OF THE JOURNEY SINCE 2002
• FOCUS ON OCCUPYING THE MINDSHARE OF THE CONSUMER
• FOCUS ON DOMINATING THE KITCHEN DOMAIN WITH DIFFERENTIATED PRODUCTS
• FOCUS ON GROWTH , GAINING MARKET SHARE AND EXPANDING CUSTOMER BASE
• KEY METRICS ‐ GROWTH
‐ CAPITAL EFFICIENCY
‐ RETURN ON CAPITAL EMPLOYED
‐ MARGIN IS A STRATEGY TO GROWTH RATHER THAN AN END IN ITSELF
• MARGIN IMPROVEMENT THROUGH IMPROVING EFFICIENCIES ‐
PASS TO CONSUMER COST ESCALATION AND NOT COST OF INEFFICIENCIES
FRUITS OF THE JOURNEY
¾ WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET
¾ TOPLINE GREW AT CAGR OF AROUND 28 % SINCE 2003 – FROM RS.113 CRORES TO RS.780 CRORES
¾ PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO 3.6 MILLION
¾ COOKWARE VOLUMES GREW FROM 0.4 MILLION TO 3.5 MILLION
¾ APPLIANCES BECAME A SIGNIFICANT PART OF THE PORTFOLIO
¾ ESTABLISHED CLEAR LEADERSHIP IN KEY PRODUCT CATEGORIES
¾ FROM A NEGATIVE EBIDTA OF 6.12 CRORES TO A POSITIVE OPERATING EBIDTA OF Rs. 125.95 CRORES
¾ PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF 17.42 CRORES TO PROFIT LEVEL OF 120.35 CRORES
¾ PAT GREW FROM A LOSS OF11.47 CRORES TO A PROFIT OF 83.75 CRORES
¾ NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.7 TIMES TO 9.3TIMES
¾ OPERATING ROCE FROM NEGATIVE TO 60.04%
¾ FROM DEBT BURDEN OF Rs.81 CRORES TO FREE CASH
¾ WON SEVERAL AWARDS India’s most awarded company and brand
And last and most important…
SNAP SHOT OF FY 2010‐11
(Rs. Crores)
2010‐11
¾ SALES ¾ OTHER INCOME
¾ PROFIT BEFORE TAX
2009‐10
775.58
4.30
120.35
516.80
1.14
75.40
¾ PROFIT AFTER TAX
83.75
52.44
¾ DIVIDEND
16.45
13.20
HIGHLIGHTS OF FY 2010‐11 ¾
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SALES GREW BY OVER 50%
ALL TIME ABSOLUTE VALUE GROWTH‐AROUND Rs.259 CR.
PROFIT BEFORE EXTRAORDINARY ITEMS INCREASED BY 69.31%
PROFIT AFTER TAX INCREASED BY 59.71%
THE OPERATING EBIDTA MARGIN WAS 16.24% AS AGAINST 14.74% IN 2009‐10
¾ THE COMPANY CONTINUES TO BE DEBT FREE AND CARRIES A FREE CASH OF Rs. 76 CR.
¾ EPS (BEFORE EXTRAORDINARY/EXCEPTIONAL ITEMS) ROSE TO Rs.74.46 from Rs.42.98 – A GROWTH OF 73.24%
¾ THE RATIO OF OPERATING EBIDTA/CAPITAL EMPLOYED (INCLUDING FREE CASH BALANCE)IN THE KITCHEN SEGMENT ROSE TO 67.3%
Strengths of the company
Brand
The Prestige Brand
Core values of the brand are TRUST, SAFETY, DURABILITY Leaders in Pressure cookers, cookware, Induction Tops
Prestige is a Superbrand
One product sold every
5 secs in India
The Prestige product portfolio
Mixer grinders
Food Processors
Choppers
Blenders
Juicers
Wet Grinders
Knives
Pressure cookers
Non stick cookware
LPG gas Stoves
Induction Cook tops
LPG Hobs
OTG’s
Microwave ovens
Rice Cookers
Barbecues
Kettles
Pop up Toasters
Sandwich toasters
Coffee Makers
Tea Makers
Complete kitchen Solutions.
Service business
Distribution Structure
Sub Dealers
Distribution
Infrastructure and Reach
Channel contributions
Retail initiative
Key highlights
Results of the Retail initiative
GOING FORWARD
WE ARE NOW
A Leading brand in
Pressure Cookers
A Leading brand in
Induction Cook Tops
A Leading brand in
Cookware
India’s first company
to offer the complete
Induction Cooking
solutions
A Leading brand in
Value added
Gas Stoves
India’s largest
Kitchen appliance
Company
WE NOW INTEND TO TAKE THIS
LEADERSHIP POSITION EVEN FURTHER!
We are making sizeable investments in Manufacturing ‐ Over Rs.200 crores
OPPORTUNITIES
¾STRONG FUNDAMENTALS OF INDIAN ECONOMY
¾CONTINUING GDP GROWTH OF OVER 8%
¾SHIFT IN INCOME GROUPS
¾INCREASE IN RURAL CONSUMPTION
¾PREFERENCE TO BRANDED QUALITY PRODUCTS
¾VAST UNTAPPED MARKET
CHALLENGES
¾ CONTINUING INFLATIONARY TREND IN ITEMS OF DAY TO DAY CONSUMPTION
¾ HIGHER INTEREST RATES
¾ VOLATALITY OF RAW MATERIAL PRICES
¾ SLOW REFORM PROCESS ¾ PROLIFERATION OF REGIONAL BRANDS ¾ LOCAL BRANDS YIELDING TO MNCs.
¾ INCREASING COST OF ADVERTISING AND COMPLEX CHOICE OF MEDIA
¾ WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES
¾ WE WILL FURTHER BROAD BASE OUR PRODUCT RANGE
¾ WE HAVE CLOCKED 50% GROWTH IN FY 2010‐11 AND A CAGR OF 32% FOR THE LAST 3 YEARS. THUS OUR BASE HAS ALREADY INCREASED.
¾ WE EXPECT THAT GIVEN THE OPPORTUNITIES, MAINTAINING A GROWTH RATE OF 25% PER ANNUM IS FEASIBLE OVER THE MEDIUM TERM .
SAFE HARBOUR THIS PRESENTATION MAY CONTAIN STATEMENTS WHICH ARE FUTURISTIC IN NATURE. SUCH STATEMENTS REPRESENT THE INTENTIONS OF THE MANAGEMENT AND THE EFFORTS BEING PUT IN BY THEM TO REALISE CERTAIN GOALS. THE SUCCESS IN REALISING THESE GOALS DEPENDS ON VARIOUS FACTORS BOTH INTERNAL AND EXTERNAL. THEREFORE THE INVESTORS ARE REQUESTED TO MAKE THEIR INDEPENDENT JUDGEMENTS BY TAKING INTO ACCOUNT ALL RELEVANT FACTORS BEFORE TAKING ANY INVESTMENT DECISIONS.
Thank you