TTK Prestige Limited · NSE:TTKPRESTIG
TTK Prestige — Investor Presentation (January 2021)
64 slides from TTK Prestige's investor presentation, January 2021
Slide 1: Welcome to TTK
ma. Welcome to TTK
Slide 2: The TTK Group
The TTK Group Today a Rs25 Billion group 35 product categories and services •16 manufacturing units •Manufacturing commenced in 1950 •12000 employees •Pioneered several categories in India •Exports to every continent •Pressure cookers, Gripe water, Maps, Condoms, ball pens, Toys and Heart •Started i
Slide 3: Diversified Group Structure
Diversified Group Structure TTK Prestige Limited • Consumer durables - Listed TTK British Holdings • UK Subsidiary of TTK Prestige Limited Limited • Consumer Durables – Unlisted Horwood Homewares Ltd • Pharmaceuticals, Medical devices, Condoms, TTK Healthcare Limited Consumer products and Foods - Li
Slide 4: Core values of the group
Core values of the group Trust, Transparency and Knowledge
Slide 5: TTK Prestige Limited
TTK Prestige Limited Flagship company of TTK Incorporated in 1955. Group India’s largest IPO in 1994. kitchenware company. Public and Inst , 30% Till 2015 Two brands in the portfolio. Prestige 3000 strong human and Manttra. Now Promoter , capital 70% added Judge& Stellar global brands. 11 Manufactur
Slide 6: Board of Directors/ Management
Board of Directors/ Management Promoter Directors • Mr. TT Jagannathan – Chairman • Mr. TT Raghunathan – Vice Chairman • Dr. TT Mukund Professional Directors • Mr. Chandru Kalro– Managing Director & CEO • Mr. K. Shankaran – Director (Corporate Affairs) & Secretary Independent Directors • Mr. R. Srin
Slide 7: Vision and Values
Vision and Values CORE VISION • To delight homemakers through Innovation • To reach every Home with Company’s Products CORE VALUES • Quality products at affordable prices • Trust, Transparency, Knowledge and “Prestige” in whatever we do • Fair dealings with every stakeholder • Respect for Environmen
Slide 8: The Journey so far …
The Journey so far … 1955 – Incorporation 1959 – First Manufacturing unit in Bangalore 1981 – Second Manufacturing unit in Hosur, Tamil Nadu Till 1990 – A single product company – Just aluminum outer lid pressure cookers – strong leader in southern India 1990-94 – Launch of SS Pressure Cookers and N
Slide 9: The Journey so far …
The Journey so far … 2006 – Launch of well differentiated inner lid pressure cookers – New capacities in Uttarakhand and Coimbatore 2006-2010 – Transformation into a total kitchen solutions provider lead by innovations like induction cooktops, Apple Cookers, Microwave Pressure Cookers and a host of
Slide 10: The Journey so far …
The Journey so far … 2013 –Launch of Microwave cookers met with great success in export market 2013 – Company turnover crosses Rs 13.8 Billion (28% CAGR in 10 years) 2013-2015 –Adverse economic conditions and state policies impacted growth 2015-16 – Got back to double digit growth in most difficult
Slide 11: Product Categories before 2001
Product Categories before 2001 Less than 100 SKUs
Slide 12: Product Categories Now
Product Categories Now Several hundred SKUs
Slide 13: Basic Philosophy that led to Turnaround and Growth
Basic Philosophy that led to Turnaround and Growth Focus on occupying the mindshare of the consumer Focus on dominating the kitchen domain with differentiated products & travel beyond Kitchen domain Focus on Growth, Gaining market share and expanding customer base Key Metrics •Growth •Capital Effici
Slide 14: Fruits of the Journey
Fruits of the Journey We derisked the company from being dependent on a single product and a single market We derisked the manufacturing and sourcing from being dependent on a single location/Few Sources Today we are operating in a market size of Rs 120 Billion as compared to just Rs 5 Billion 10 Ye
Slide 15: Fruits of the Journey
Fruits of the Journey From a negative EBITDA of Rs.61.2 Million to a positive operating EBITDA Hovering Close To Rs.3.1 Billion Profit Before Tax Grew From a loss Situation Of Rs. 17.42 Million to a profit level hovering around Rs. 2.83 Billion PAT grew from a loss Of Rs.114.7 Million to a positive
Slide 16: Awards & Accolades
Awards & Accolades TTK Prestige is Star SME of the year 2010 - TTK Group Chairman Mr. T TyJagannathan receiving the award from Prime Minister Dr. Manmohan Singh tk
Slide 17: Awards & Accolades
Presti Awards & Accolades Prestige Fiial Superbra Cc tk
Slide 18: Product Design Awards
Product Design Awards ad — THOUGHTFUL 2 THOUGHTFUL = FEATURES. FEATURES. CUTTING EDGE CUTTING EDGE DESIGNS. DESIGNS. tk
Slide 19: Awards 2018-19
Awards 2018-19 Superbrand Award for 2018-2019 Marketing Excellence Award Brand of the Year Award Brand Excellence Award in Home and Kitchen Appliances Award for Marketing Communication (Business to Consumer)
Slide 20: Strengths of the company
Strengths of the company • 11 manufacturing • Within and outside units India • Excellent Product • Dedicated vendors development capability within India to • Strengths in Deep draw implement our of Aluminum and SS designs Manufacturing Manufacturing Sourcing Brand •Comprehensive Sales and Marketing
Slide 21: The Prestige Brand
The Prestige Brand Core values of the brand TRUST, SAFETY, DURABILITY &SOLUTION ORIENTED Leaders in Pressure cookers, Microwave Pressure Cookers cookware, Induction Tops, Rice Metal Spoon friendly cookware cookers & Value added Gas tops. Product Clip on range of Pressure Cookers Innovations Impact b
Slide 22: Total Industry we operate in: 15850 Crores
Total Industry we operate in :- 15850 Crores (At Market Operating Prices)
Slide 23: The Prestige product portfolio – widest in the industry
The Prestige product portfolio – widest in the industry Preparation before Kitchen cooking Food preparation supplements Kitchen Hardware Cleaning Solution Pressure Chopping Heaters Chimneys cooking Electrical Blending Cooking Toasting Store-ware Grinding Sautéing, Beverage Non- frying etc makers Ele
Slide 24: Distribution Structure
Distribution Structure Traditional Modern Own Retail Institutions Online Trade Trade Prestige Smart Direct Dealers Hypermarkets Kitchen Offline CSD Market Place and Online Authorized Re- Corporate and Supermarkets Direct Sell distributors Govt. Oil Marketing Shop in Shop Companies Rural Marketing Te
Slide 25: Distribution
Distribution Structure with multiple National presence Large sales force channels 400 direct & 1000 28 branch locations Own retail indirect Over 250,000 sq. ft of Product/ Modern format warehousing Territory/Channel focus Committed and well Several thousand outlets qualified sales Traditional retail
Slide 26: Channel contributions
Channel contributions 4% CSD 3% Others 49% Traditional Trade Own Retail 10% Traditional Large Format Trade Institutions 5% Rural Rural Ecommerce 2% Others Institutions Large Format CSD Own 13% Retail 14%
Slide 27: Retail initiative
Retail initiative Pioneering effort Nationalpresence Results of the Retail initiative • First kitchen • 574 outlets in 333 appliance brand towns Quick reach of new products Brand is today seen in a new light. Show cases the brand in the intended and complete format for High conversion High efficienc
Slide 28: Innovation – The key growth to success
Innovation – The key growth to success SOME KEY INNOVATIONS • Clip-On Pressure Cooker: “India’s First Multi Utility Pressure Cooker” • E-Gas HobTop: “India’s First Electronically Controlled Convertible Gas Stove ” •PIC 3.1 V3: “India’s Only Induction Cooktop with Whistle Counter and Keep warm Functi
Slide 29: Microwave Coffee Maker A Breakthrough Innovation
Microwave Coffee Maker A Breakthrough Innovation Microwave compatible Coffee Maker Innovated and developed in-house Patent Pending A potential growth driver for export market & TN Makes 2 Cup of Coffee in 4 minutes
Slide 30: Breakthrough Products in Traditional Business
Breakthrough Products in Traditional Business • Clip-On Mini Pressure Cooker • Deluxe Pro Pressure Cooker (5 Safety Features) • Tri Ply Cookware
Slide 31: Breakthrough Products in Appliances Business
Breakthrough Products in Appliances Business • Edge Gas Stoves • Digital and Non Digital Black and Gold Hobtops AI Frame Gas Stoves 2, 3 and 4 burner • Aata Kneader Cum Chopper
Slide 32: Breakthrough Products in Appliances Business
Breakthrough Products in Appliances Business • Kitchen Hoods • Sandwich Makersand Grills • Kettles • Hand Blender and Mixers
Slide 33: Launch of Cleaning Solutions Business: Electric Range
Launch of Cleaning Solutions Business: Electric Range • Vacuum Cleaners • Fruit and Vegetable Cleaner • Hero Mop
Slide 34: Launch of Cleaning Solutions Business: Non Electric Range
Launch of Cleaning Solutions Business: Non Electric Range • Water Purifiers • Magic Mops
Slide 35: Launch of Cleaning Solutions Business: Non Electric Range
Launch of Cleaning Solutions Business: Non Electric Range • Waster Segregation Dustbins
Slide 36: Factors That Lead to Growth and Sustainability Since 2003-04
Factors That Lead to Growth and Sustainability Since 2003-04 Economy was growing Consistent increase in General economic between 8-9% for a number of middle factors period of about 6 to 7 income groups years till 2010-11. Growing disposable Rural employment income in the hands of guarantee scheme/DB
Slide 37: Factors That Lead to Growth and Sustainability Since 2003-04
Factors That Lead to Growth and Sustainability Since 2003-04 New consumers added New consumers added Consumer behavior from lower income group from semi urban/satellite factors in urban centers rural areas Demand arising out of Shifting preference to addition to new families , The breed of domestic
Slide 38: Factors That Lead to Growth and Sustainability since 2003-04
Factors That Lead to Growth and Sustainability since 2003-04 Offering innovated Driving growth Close contact with and differentiated through Innovation consumer products ahead of competition Expanding Innovative Offering of wide distribution – width, marketing and sales range and total depth and pro
Slide 39: Financials
oe FINANCIALS tk
Slide 40: Sales Trend (INR Million)
SALES TREND (INR MILLION) (NET OF DISCOUNTS) 21000 19680 19000 17465 17000 16036 15000 14879 13442 13000 13106 12515 11000 10618 9000 7335 7000 5000 3000 1000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Slide 41: Total OTHERS Cleaning
45000.0 40000.0 35000.0 30000.0 19680.0 17464.5 Total 25000.0 OTHERS 16036.4 14879.3 Cleaning APPLIANCES 20000.0 13106.4 13442.4 661.5 334.4 COOKWARE 12515.2 578.2 252.5 COOKERS 10617.5 564.3 118.1 15000.0 563.3 0.0 9210.9 445.1 0.0 529.7 0.0 7985.9 364.1 0.0 6986.7 7334.7 6376.0 10000.0 282.8 0.0 5
Slide 42: EBITDA (Before Exceptional Items) Trend (INR Million)
EBITDA (BEFORE EXCEPTIONAL ITEMS) TREND (INR MILLION) 3300.0 3100.0 3114.8 2900.0 2700.0 2500.0 2485.4 2300.0 2100.0 2016.5 1932.7 1900.0 1700.0 1681.0 1543.4 1500.0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Slide 43: EBITDA Margin Trend
EBITDA(before exceptional items) MARGIN TREND 17.00% 16.00% 15.83% 15.00% 14.23% 14.00% 13.00% 12.99% 12.99% 12.57% 12.00% 11.00% 11.12% 10.00% 9.00% 8.00% 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Slide 44: Key Facts FY 2018-19
Key Facts FY 2018-19 Introduced Judge Brand of Exports continued to register New Category of Cleaning Cookers ,Cookware ,Gas Stoves growth Solutions growing well. & Appliances Annual EBITDA margin before Company registered annual Performance better than exceptional items grew smartly domestic growth
Slide 45: Key Facts Relating to FY 2018-19
Key Facts Relating to FY 2018-19 Rural and E-Commerce Sales registered high growths Same stores growth in PSK’s was encouraging A host of New Models/New Products in all categories – overall 100 SKUs introduced. New Advertisement campaign showing results. Higher Capacity utilisation leading to better
Slide 46: TTK Prestige Limited Q2 Performance Highlights
TTK PRESTIGE LIMITED GIST OF INFORMATION TO BE SHARED WITH ANALYSTS - Q2 of FY 2019-20 HIGHLIGHTS OF PERFORMANCE (STANDALONE) Q2 1ST HALF Sales PBT EBITDA PAT Sales PBT EBITDA PAT Value Growth Growth Growth Value Growth Growth Growth Growth Growth Q2 Q2 Q2 Q2 1st Half 1st Half 1st Half 1st Half 3.86
Slide 47: Key Business Facts for Q2 of 2019-20
KEY BUSINESS FACTS FOR Q2 OF 2019-20 By and large volume growth seen across categories. Value growth varied on account of product mix Introduced 33 new SKUs during the quarter Cleaning Solutions business continues to grow well Growth in Appliances was better than Traditional categories Prestige Xclu
Slide 48: For the Quarter Ended 30th September 2019
For the Quater Ended 30th September 2019 (Rs. Million) STANDALONE CONSOLIDATED 19-20 18-19 19-20 18-19 Sales 57359.0 55227.0 60630.0 46120.0 Other Income 4401.0 3877.0 4540.0 4059.0 EBITDA 9269.0 8741.0 9365.0 6255.0 EBITDA % on Sales 16.16 15.83 15.45 13.56 PROFIT BEFORE TAX (Before Exceptional Ite
Slide 49: For the Half Year Ended 30th September 2019
For the Half Year Ended 30th September 2019 (Rs. Million) STANDALONE CONSOLIDATED 19-20 18-19 19-20 18-19 Sales 100719.0 97114.0 106750.0 103120.0 Other Income 1259.0 1112.0 1263.0 1092.0 EBITDA 15534.0 14756.0 15620.0 14858.0 EBITDA % on Sales 15.42 15.19 14.63 14.41 PROFIT BEFORE TAX (Before Excep
Slide 50: Going Forward
GOING FORWARD 22> > tk
Slide 51: We Are Now
We Are Now No. 1 Brand in No. 1 Brand in No. 1 Brand in Pressure cookers Cookware Value added Gas Stoves India’s only company No. 1 Brand in to offer the complete No 1 Brand in Induction Cook tops Induction Cooking Rice Cookers solution India’s largest Kitchen appliance company
Slide 52: We Are Committed to Take This Leadership Position Even Further
WE ARE COMMITTED TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER!
Slide 53: Manufacturing
Manufacturing Invested about Rs.3.5 billion between FY 2010-11 and FY 2013-14 Innovation/Development costs – revenue in nature - about 1.5% of sales We have doubled pressure cooker capacity between 2012 & 2014 We have quadrupled Cookware capacity 2012 & 2014 All our investments comprise state of the
Slide 54: New Growth area – Cleaning Solutions
New Growth area – Cleaning Solutions Electrics Non Electrics Floor Care Air Care Home care Kitchen Floor Kitchen Home Bathroom Steam Cutlery Tile Scourer Electric Mop Air Purifiers Magic mops Carpet Brush cleaners Fruit and Veg Cleaner Cleaner Vacuum Window Premium Bottle Toilet Brush Spray mops Bru
Slide 55: Opportunities
Opportunities Strong Fundamentals Of Indian Economy despite some slowdown since Jan 2019 • Expected GDP growth of around 7 % from FY 19-20 New Infrastructure//Rural Development Initiatives –Ujwala, Electrification, etc Shift In Income Groups – Direct Benefit Transfer aids increase in consumer base T
Slide 56: Opportunities
Opportunities Vast Untapped Market – Categories And Geographies Leveraging the fast-growing On-Line Channel To Broaden Customer Base Select Export Markets For Specific Products –Leveraging UK acquisition Opportunities For faster growth through rural markets Strong Long-Term Resource Base Gives Freed
Slide 57: Challenges
Challenges Slower recovery in consumer sentiment Weak Global Markets Pressure On Disposable Income Lower GDP Growth Since 2011-12 Proliferation Of Regional Brands & Their Trade Practices Possible Down Trading Warranting Low Price Point Products Entry Of MNC’S/Branded Domestic National Players In App
Slide 58: Key Strategy of TTK Prestige in the Current Scenario & Expected Impact
Key Strategy of TTK Prestige in the Current Scenario& Expected Impact Drive consumer interest by well differentiated offerings Leverage Brand strength to enter select categories transcending Kitchen Domain Target domestic growth rate in excess of GDP growth rate Not to indulge in unnatural pricing –
Slide 59: Key Strategy of TTK Prestige in the Current Scenario & Expected Impact
Key Strategy of TTK Prestige in the Current Scenario & Expected Impact Increase geographical penetration in under-penetrated markets in non-south and select non-urban markets Multiple Brand Strategy to be relevant to all consumer segments Inorganic opportunities ( acquisition) that can add to long-t
Slide 60: Our Response to Challenges
Our Response to Challenges We believe that we will strike a balance between Opportunities And Challenges We have already broad based our Product Range as well as consumer base – seeing impressive growths In non-south Markets We will continue to widen our product range and consumer base in the kitche
Slide 61: New Brand Ambassador and proposition
New Brand Ambassador and proposition :- The brand has a new brand ambassador :- The new proposition would be floating with the core thought being “ Jo Apnon se kare pyar, who Prestige se kaise kare inkaar ”
Slide 62: Our Response to Challenges
Our Response to Challenges We are making significant investments in innovation, human resource development, logistics and service Wherever required consultants of global repute engaged We have clocked in a CAGR of over 28% till 2013. Thus our base has already increased. For the current, focus is to
Slide 63: Safe Harbour
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.
Slide 64: Thank you
oe Thank you tk