TTK Prestige

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Welcome to TTK

Transcript of TTK Prestige

Page 1: TTK Prestige

Welcome to TTK

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The TTK Group

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

Manufacturing commenced in 1950

• Pioneered several categories in India

• Pressure cookers, Gripe water, Maps, Condoms, ball pens, Toys and Heart Valves.

Today a Rs22 Billion group

• 30 product categories and services

• 16 manufacturing units

• 12000 employees

• 7 group companies

• Exports to every continent

Indian roots, Global Reach

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Mission of the group To provide quality consumer products at affordable prices

Core values of the group

Trust, Transparency and Knowledge

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Diversified Group Structure

• Consumer durables - Listed TTK Prestige Limited

• Pharmaceuticals, Medical devices & Consumer products - Listed

TTK Healthcare Limited

• Condoms - JV Company TTK LIG Limited

• Foot care products – JV Company SSL TTK Limited

• Health insurance TPA – JV Company TTK Healthcare TPA Limited

• Non-Resident services and KPO TTK Services private Limited

• Health Insurance JV company Cigna TTK Limited

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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

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Vision and Values

CORE VISION

• 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

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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

• FEB 2012 – COMPANY TURNOVER CROSSES 1000 CRORES.

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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

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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.1130 MILLION

TO OVER RS. 10 BILLION IN FINANCIAL YEAR 2011-12. PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO 4.5 MILLION COOKWARE VOLUMES GREW FROM 0.4 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 61.2 MILLION TO A POSITIVE OPERATING EBIDTA OF

OVER Rs. 1700 MILLION IN 2011-12 PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF 174.20 MILLION TO PROFIT

LEVEL OF OVER 1600 MILLION PAT GREW FROM A LOSS OF114.70 MILLION TO A PROFIT OF ABOUT 1150

MILLION. NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.7 TIMES TO OVER 7

TIMES OPERATING ROCE FROM NEGATIVE TO 60.04% WON SEVERAL AWARDS

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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

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And last and most important…

Star SME award for 2010!

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SNAP SHOT OF FY 2010-11 (Rs. Million)

2011-12 est 2010-11 2009-10

SALES 11200.00 7755.80 5168.00

OTHER INCOME 25.00 43.00 11.40

PROFIT BEFORE TAX 1600.00 1203.50 754.00

PROFIT AFTER TAX 1150.00 837.50 524.40

DIVIDEND 164.50 132.00

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HIGHLIGHTS OF FY 2010-11

SALES GREW BY OVER 50%

ALL TIME ABSOLUTE VALUE GROWTH-AROUND Rs.2590 MILLION.

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

THE COMPANY CONTINUES TO BE DEBT FREE AND CARRIES A FREE CASH OF Rs. 760 MILLION

EPS (BEFORE EXTRAORDINARY/EXCEPTIONAL ITEMS) ROSE TO Rs.74.46 from Rs.42.98 – A GROWTH OF 73.24%

THE RATIO OF OPERATING EBIDTA/CAPITAL EMPLOYED (INCLUDING FREE CASH BALANCE)IN THE KITCHEN SEGMENT ROSE TO 67.3%

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Highlights of year 2011-12

• Growth again is upwards of 40% for the year –much higher than any peer in the industry.

• 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, enough headroom for growth is available.

• Company will cross 1000 crores. 2009 march was a little over 500 crores.

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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

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

Brand

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The Prestige Brand

India’s Largest Kitchen appliance

brand

• Turnover & Profits

• Product portfolio

• Reach

• No. of customers

Marketing innovations

• Exchange schemes

• Display schemes

• Retail

Product innovations

• Pressure cookers

• Metal spoon friendly cookware

• Duplex gas stoves

Core values of the brand are TRUST, SAFETY,

DURABILITY

Leaders in Pressure cookers, cookware, Induction Tops Prestige is a Superbrand

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The Prestige product portfolio – widest in the industry

Preparation before cooking

Chopping

Blending

Grinding

Processing

Food preparation

Pressure cooking

Cooking

Sautéing, frying etc

Baking

Kitchen supplements

Heaters

Toasting

Beverage makers

Kitchen Hardware

Chimneys

Modular Kitchen

furniture

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

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Distribution Structure

Traditional Trade

Direct Dealers

Authorized Re-

distributors

Modern Trade

Hypermarkets

Super markets

Shop in Shop

Own Retail

Prestige Smart Kitchen

Prestige Kitchen

Boutique

Institutions

CSD

BPCL

HPCL

Corporate and Govt.

Sub Dealers

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Retail initiative

Key highlights Unique pioneering effort

•First kitchen appliance brand

National presence

•340 outlets

•170 towns

High conversion ratio

•60% of walk-ins actually buy

High efficiency/sq ft

•Over Rs.8000/sq ft.

Direct contact with customer

•Ability to launch new products

Ability to grow beyond market

growths

Results of the Retail initiative

Quick reach of new products

Brand is today seen in a new light.

Show cases the brand in the intended and complete format for 365 days

Unique engagement with the customer.

Unmatched on ground presence and a unique listening post.

Greater leverage with trade – both traditional and modern format.

Lower cost of sales in the long run.

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GOING FORWARD

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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 , marriage and transfers , 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

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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, 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

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No. 1 Brand in Pressure cookers

No. 1 Brand in Cookware

No. 1 Brand in Value added Gas Stoves

No. 1 Brand in Induction Cook tops

India’s only company to offer the complete

Induction Cooking solution

India’s largest Kitchen appliance

company

WE ARE NOW

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WE NOW INTEND TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER!

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We are making sizeable investments in Manufacturing - about Rs.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.

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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

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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

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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.

WE EXPECT THAT GIVEN THE OPPORTUNITIES, MAINTAINING A GROWTH RATE BETWEEN 20 AND 25% PER ANNUM IS FEASIBLE OVER THE MEDIUM TERM .

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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.

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Thank you