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The TTK Group
Today a Rs22 Billion group Manufacturing commenced in 1950
• Pioneered several categories in India • Pressure cookers, Gripe water, Maps, Condoms, ball pens, Toys and Heart Valves.
Started in 1928 as an indenting agency
• Founded by Mr. TT Krishnamachari • Pioneered organized distribution • Health care, Foods, Personal care products, Writing instruments, Ethical products • Cadbury’s, MaxFactor, Kiwi, Kraft, Sunlight, Lifebuoy, Lux, Ponds, Brylcreem, Kellogg's, Ovaltine, Horlicks, Mcleans, Sheaffer’s, Waterman’s & many more
• 30 product categories and services • 16 manufacturing units • 12000 employees • 7 group companies • Exports to every continent
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
Listed • Condoms .Diversified Group Structure TTK Prestige Limited TTK Healthcare Limited TTK LIG Limited SSL TTK Limited TTK Healthcare TPA Limited TTK Services private Limited Cigna TTK Limited • Consumer durables . Medical devices & Consumer products .JV Company • Foot care products – JV Company • Health insurance TPA – JV Company • Non-Resident services and KPO • Health Insurance JV company .Listed • Pharmaceuticals.
Sundaresan – Vice President (Finance) & CFO – Mr.Board of Directors/ Management Promoter Directors • Mr.(Mrs)Latha Jagannathan Executive Directors • Mr. V. H.T. R. Chandru Kalro – Executive Vice President (Marketing) – Mr. S. K. TT Jagannathan – Executive Chairman • Mr. Dileep Kumar Krishnaswamy Well balanced Board Sub Board level – Mr.(Mrs) Vandana Walvekar • Mr. Rajan. TT Raghunathan – Vice Chairman • Dr. Shankaran – Director (Corporate Affairs) Independent Directors • Mr. Ravichandran – Managing Director • Mr.Chief Manufacturing Officer . Ajay I Thakore • Mr. Srinivasan • Mr. Arun Thiagarajan • Dr.
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 . Transparency.Vision and Values CORE VISION • A Prestige in every Indian Kitchen CORE VALUES • • Quality products at affordable prices Trust.
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 .YET BOLD INITIATIVES LAYING THE FOUNDATION FOR BRAND EXTENSION AND EXPLOSIVE GROWTH .THE UNLEASHING OF THE BRAND AND PEOPLE POWER .EXPORT THRUST –LAUNCH OF MANTTRA BRAND • 2000-2003 .PERIOD OF TURBULANCES .THE JOURNEY SO FAR • • • • 1955 – INCORPORATION 1959 – FIRST MANUFATURING UNIT IN BANGALORE 1981 – SECOND MFG UNIT IN HOSUR .
NEW CAPACITIES IN UTHARKAND AND COIMBATORE • 2006. . APPLE COOKERS.LARGEST CAPACITY EXPANSION INTITIATIVE TO BACK THE ABOVE VISION • FEB 2012 – COMPANY TURNOVER CROSSES 1000 CRORES.……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 .MICROWAVE PRESSURE COOKERS AND A HOST OF APPLIANCES • 2010 – 11 ADOPTION OF A SIMPLE BUT POWERFUL VISION – “ A PRESTIGE IN EVERY INDIAN KITCHEN “ • 2011 .2010 – TRANSFORMATION INTO A TOTAL KITCHEN SOLUTION PROVIDER LEAD BY INNOVATIONS LIKE INDUCTION TOPS.
GAINING MARKET SHARE AND EXPANDING CUSTOMER BASE • KEY METRICS .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 .RETURN ON CAPITAL EMPLOYED .MARGIN IS A STRATEGY TO GROWTH RATHER THAN AN END IN ITSELF • MARGIN IMPROVEMENT THROUGH IMPROVING EFFICIENCIES .CAPITAL EFFICIENCY .GROWTH .PASS TO CONSUMER COST ESCALATION AND NOT COST OF INEFFICIENCIES .
FRUITS OF THE JOURNEY WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET TOPLINE GREW AT CAGR OF AROUND 28 % SINCE 2003 – FROM RS. PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO 4. 10 BILLION IN FINANCIAL YEAR 2011-12.20 MILLION TO PROFIT LEVEL OF OVER 1600 MILLION PAT GREW FROM A LOSS OF114.5 MILLION COOKWARE VOLUMES GREW FROM 0.04% WON SEVERAL AWARDS .2 MILLION TO A POSITIVE OPERATING EBIDTA OF OVER Rs.4 MILLION TO OVER 5 MILLION APPLIANCES BECAME A SIGNIFICANT PART OF THE PORTFOLIO – CURRENTLY ABOUT 43% OF TOTAL SALES ESTABLISHED CLEAR LEADERSHIP IN KEY PRODUCT CATEGORIES FROM A NEGATIVE EBIDTA OF 61.7 TIMES TO OVER 7 TIMES OPERATING ROCE FROM NEGATIVE TO 60. 1700 MILLION IN 2011-12 PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF 174.1130 MILLION TO OVER RS.70 MILLION TO A PROFIT OF ABOUT 1150 MILLION. NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.
India’s most awarded company and brand Super Brand Master Brand Best product design award for Prestige Apple Best Franchise award Best franchisor award Retailer of the year award Voted India’s most trusted Kitchen appliance brand .
And last and most important… Star SME award for 2010! .
40 132.00 OTHER INCOME 25.00 1203.50 837.SNAP SHOT OF FY 2010-11 (Rs.00 524.00 PROFIT AFTER TAX 1150.00 .80 43.50 164. Million) 2011-12 est 2010-11 2009-10 SALES 11200.00 PROFIT BEFORE TAX 1600.40 754.00 DIVIDEND 7755.00 11.50 5168.
2590 MILLION. 760 MILLION EPS (BEFORE EXTRAORDINARY/EXCEPTIONAL ITEMS) ROSE TO Rs.24% AS AGAINST 14.98 – A GROWTH OF 73.74% IN 2009-10 THE COMPANY CONTINUES TO BE DEBT FREE AND CARRIES A FREE CASH OF Rs.3% . PROFIT BEFORE EXTRAORDINARY ITEMS INCREASED BY 69.31% PROFIT AFTER TAX INCREASED BY 59.71% THE OPERATING EBIDTA MARGIN WAS 16.42.24% THE RATIO OF OPERATING EBIDTA/CAPITAL EMPLOYED (INCLUDING FREE CASH BALANCE)IN THE KITCHEN SEGMENT ROSE TO 67.HIGHLIGHTS OF FY 2010-11 SALES GREW BY OVER 50% ALL TIME ABSOLUTE VALUE GROWTH-AROUND Rs.46 from Rs.74.
enough headroom for growth is available.Highlights of year 2011-12 • Growth again is upwards of 40% for the year –much higher than any peer in the industry. 2009 march was a little over 500 crores. . • Company will cross 1000 crores. • Strong ability to retain margins even in volatile situations. • New product pipeline continues to impress trade and consumer. • Operate in a 6500 crore industry with double digit growths in many categories. • Many categories are new for Prestige and with its strong new product portfolio.
Strengths of the company Manufacturing • 8 manufacturing units • Excellent Product development capability • Strengths in Deep draw of Aluminum and SS Sourcing • Within and outside India • Dedicated vendors within India to implement our designs Brand Quality •India’s first ISO 9001: 2000 certified Kitchenware company •India’s only PED:CE certified company •Pass every relevant global standard on manufactured products. Marketing •Comprehensive Sales and Marketing network •Unique model of Exclusive Retail outlets •Largest service network in the category .
SAFETY. of customers . DURABILITY Leaders in Pressure cookers. Induction Tops Prestige is a Superbrand • Pressure cookers Product • Metal spoon innovations friendly cookware • Duplex gas stoves Marketing innovations • Exchange schemes • Display schemes • Retail India’s Largest Kitchen appliance brand • Turnover & Profits • Product portfolio • Reach • No.The Prestige Brand Core values of the brand are TRUST. cookware.
frying etc Baking Grinding Processing 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 .The Prestige product portfolio – widest in the industry Preparation before cooking Food preparation Kitchen supplements Heaters Toasting Beverage makers Kitchen Hardware Chimneys Modular Kitchen furniture Chopping Blending Pressure cooking Cooking Sautéing.
.Distribution Structure Traditional Trade Direct Dealers Modern Trade Hypermarkets Own Retail Prestige Smart Kitchen Institutions CSD Authorized Redistributors Super markets Prestige Kitchen Boutique BPCL Sub Dealers Shop in Shop HPCL Corporate and Govt.
High efficiency/sq ft •Over Rs. Show cases the brand in the intended and complete format for 365 days Unique engagement with the customer. Lower cost of sales in the long run. High conversion ratio •60% of walk-ins actually buy Direct contact with customer •Ability to launch new products Ability to grow beyond market growths Greater leverage with trade – both traditional and modern format. Unmatched on ground presence and a unique listening post. .Retail initiative Key highlights Unique pioneering effort •First kitchen appliance brand Results of the Retail initiative National presence •340 outlets •170 towns Quick reach of new products Brand is today seen in a new light.8000/sq ft.
GOING FORWARD .
modernization and improvements to kitchen • The breed of domestic cook and domestic help vanishing •Newer kitchen and hence demand for new products •Change in home style from closed kitchens to open kitchens • Informed buying . marriage and transfers .FACTORS LEADING TO GROWTH AND SUSTAINABILITY General economic factors •Economy itself is growing between 8-9% for the last 6 years •Consistent increase in number of middle income groups •Rural employment guarantee scheme •Growing disposable income in the hands of consumer Consumer behavior factors •New consumers added from lower income group in urban centers •New consumers added from semi urban/satellite rural areas •Shifting preference to quality products and hence branded products •Demand arising out of addition to new families .
depth and innovative channels •Innovative marketing and sales promotion strategies •Ensuring that Dealers enjoy real profits and higher ROI •Dealer Loyalty – 40% of counter profits come from TTK Prestige •Economies of scale .FACTORS LEADING TO GROWTH AND SUSTAINABILITY………. TTK Prestige’s role •Close contact with consumer •Offering innovated and differentiated products ahead of competition •Offering of wide range and total kitchen solution •Expanding distribution – width.
1 Brand in Induction Cook tops India’s only company to offer the complete Induction Cooking solution India’s largest Kitchen appliance company . 1 Brand in Cookware No. 1 Brand in Pressure cookers No.WE ARE NOW No. 1 Brand in Value added Gas Stoves No.
WE NOW INTEND TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER! .
3000 Million We are now more than doubling pressure cooker capacity We are quadrupling Cookware capacity We are investing in India’s only fully automated Hard anodizing plant We have many new initiatives in the pipeline. .We are making sizeable investments in Manufacturing .about Rs.
OPPORTUNITIES STRONG FUNDAMENTALS OF INDIAN ECONOMY CONTINUING GDP GROWTH OF OVER 7% SHIFT IN INCOME GROUPS INCREASE IN RURAL CONSUMPTION PREFERENCE TO BRANDED QUALITY PRODUCTS VAST UNTAPPED MARKET – CATEGORIES AND GEOGRAPHIES .
CHALLENGES CONTINUING INFLATIONARY TREND IN ITEMS OF DAY TO DAY CONSUMPTION HIGHER INTEREST RATES VOLATALITY OF RAW MATERIAL PRICES SLOW REFORM PROCESS PROLIFERATION OF REGIONAL BRANDS EXPECTED ENTRY OF MNC’S .
. WE EXPECT THAT GIVEN THE OPPORTUNITIES. WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES WE WILL FURTHER BROAD BASE OUR PRODUCT RANGE 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. MAINTAINING A GROWTH RATE BETWEEN 20 AND 25% PER ANNUM IS FEASIBLE OVER THE MEDIUM TERM .
.SAFE HARBOUR THIS PRESENTATION MAY CONTAIN STATEMENTS WHICH ARE FUTURISTIC IN NATURE. THEREFORE THE INVESTORS ARE REQUESTED TO MAKE THEIR INDEPENDENT JUDGEMENTS BY TAKING INTO ACCOUNT ALL RELEVANT FACTORS BEFORE TAKING ANY INVESTMENT DECISIONS. 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.
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