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TTK Prestige (not-rated)
FY11 growth for the cookers was at 31% (2.8mn in FY10 to 3.7mn in
FY11), with the inner lid cookers growth of 80% (3.5mn in FY10 to 6.63mn
in FY11). The inner lid cookers represent 65% of the cookers market with a
market size of 6.4mn and the company has a 10% market share in the same.
The outer lid cookers growth for the company was around 5%. Outer lid
cookers market is a saturated market and the company plans to maintain the
growth in this market through its wide range of product with varied
applications. TTK is a forerunner in induction based cookware and is
introducing electrical and microwave pressure cookers this year.
The average life for cooker is around 5yrs and for non stick cookware its
even faster replacement at 2.3yrs. The company believes even if there is a
slowdown in new sales, it still has replacement demand. As per company,
growth in worst case could be 20% and best case could be 40%. Margins for
cooker/cookware stable at 12% and higher for appliances at 20%.
The company plans to increase its outlets from 295 presently to 400 by year
end and add another 200 outlets in next 2 years. Its plan is to increase
throughput through the same existing number of outlets and also penetrate in
Indian market though PSKs (franchisee model). Average turnover from a
PSK is 40 lakhs p.a. Presently 65% of PSKs are in South, so the company
plans to add PSKs in north east markets.
Sales distribution (dealers - 60%, modern retail outlets - 10-12%, own
galleries - 18%, exports - 3-4% and rest from uninstitutional sources like
large format stores). Margins for dealers are around 17-18% compared to
MRP and around 6% for wholesalers/authorized re-distributors.
The cookware and others segment grew by 75% and 60%, respectively in
FY11. For appliances the company has a manufacturing facility in
Uttaranchal which the company plans to develop over 3-4 years. The
company doesn't consider itself an expert in electrical appliances.
The company doesn't see much of an impact of rising inflation with good
sales volumes in April and May 2011. However, it will wait to see if any
impact of fuel hike.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TTK Prestige (not-rated)
FY11 growth for the cookers was at 31% (2.8mn in FY10 to 3.7mn in
FY11), with the inner lid cookers growth of 80% (3.5mn in FY10 to 6.63mn
in FY11). The inner lid cookers represent 65% of the cookers market with a
market size of 6.4mn and the company has a 10% market share in the same.
The outer lid cookers growth for the company was around 5%. Outer lid
cookers market is a saturated market and the company plans to maintain the
growth in this market through its wide range of product with varied
applications. TTK is a forerunner in induction based cookware and is
introducing electrical and microwave pressure cookers this year.
The average life for cooker is around 5yrs and for non stick cookware its
even faster replacement at 2.3yrs. The company believes even if there is a
slowdown in new sales, it still has replacement demand. As per company,
growth in worst case could be 20% and best case could be 40%. Margins for
cooker/cookware stable at 12% and higher for appliances at 20%.
The company plans to increase its outlets from 295 presently to 400 by year
end and add another 200 outlets in next 2 years. Its plan is to increase
throughput through the same existing number of outlets and also penetrate in
Indian market though PSKs (franchisee model). Average turnover from a
PSK is 40 lakhs p.a. Presently 65% of PSKs are in South, so the company
plans to add PSKs in north east markets.
Sales distribution (dealers - 60%, modern retail outlets - 10-12%, own
galleries - 18%, exports - 3-4% and rest from uninstitutional sources like
large format stores). Margins for dealers are around 17-18% compared to
MRP and around 6% for wholesalers/authorized re-distributors.
The cookware and others segment grew by 75% and 60%, respectively in
FY11. For appliances the company has a manufacturing facility in
Uttaranchal which the company plans to develop over 3-4 years. The
company doesn't consider itself an expert in electrical appliances.
The company doesn't see much of an impact of rising inflation with good
sales volumes in April and May 2011. However, it will wait to see if any
impact of fuel hike.
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