TTK Prestige forays into modular kitchen business; acquires stake in Ultrafresh Modular Solutions
The investee company - Ultrafresh Modular Solutions is engaged in the business of modular kitchens and kitchen appliances and has many franchisee outlets across India.
TTK Prestige Ltd, a kitchen appliances and cookware manufacturing company famous for its ‘Prestige’ cookers, announced today that it has signed an agreement with Ultrafresh Modular Solutions Ltd for making acquisition and strategic investments in the latter.
The investee company - Ultrafresh Modular Solutions is engaged in the business of modular kitchens and kitchen appliances and has many franchisee outlets across India. Its turnover during FY21 stood at Rs 12 crore. Ever since its foray into Modular Kitchens in 2018, the company has developed infrastructure for the design, development, sourcing and sale and marketing of modular kitchens. They also have a captive source for sourcing modular kitchen accessories and appliances like kitchen hoods, which will become part of Ultrafresh.
For making this acquisition, Prestige shall make phased investments of approximately Rs 30 crore. At the initial stage, it will hold 40 per cent equity shareholding of Ultrafresh Modular Solutions Ltd, and post-acquisition, the total equity shareholding shall increase to 51 per cent.
The rationale behind this move is that owing to the fast-expanding home construction industry and the aspirations of consumers to upgrade their kitchens, branded modular kitchen is gaining ground. Prestige stated that in the last three years, Ultrafresh equipped itself with expertise in designing. It has established approximately 85 design studios and franchise outlets across India. And acquiring Ultrafresh is aligned with the long-term vision and growth of TTK Prestige.
At 1.04 pm, the share price of TTK Prestige Ltd was trading at Rs 10,566.50, which was a decline of 0.9 per cent from the previous day’s closing price of Rs 10,662 on BSE.