TTK Prestige: Brand Leader in Cookware

TTK Prestige is flagship company of the conglomerate TTK Group.

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Family Structure

family structure of TTK group

TTK Group:

Mr. T.T. Krishnamachari found TTK Group in 1928. The group is a conglomerate with presence across across several segments of industry including consumer durables, pharmaceuticals & supplements, bio-medical devices, maps and atlases, consular visa services, virtual assistant services & health care services.

Brands under the group include TTK Chitra Heart Valves, Prestige pressure cookers, Woodward’s gripe water, Eva Deodorants, Skore, CignaTTK Health Insurance, GetFriday, Fryums.

TTK Prestige:

The group founder, Mr. T.T. Krishnamachari joined politics & became Commerce and Finance Minister of India after Independence. It was his son Mr. T T Narasimhan, who introduced product like Pressure Cooker, way beyond its time in India. In 1975, his son Mr. T T Jagannathan took over the charge of TTK Prestige, when it was on the verge of bankruptcy. He turned around TTK Prestige and made it one of the country’s best known brands of Kitchen Appliances, Cookware & Home Appliances. Currently, Mr. T.T. Jagannathan holds the position of Executive Chairman in the company.

The company started manufacturing Pressure cookers in 1959 with technical collaboration from UK based Prestige Group.

Brand acquisition: Then in 1992, TTK decided to buy the Prestige brand for India from the UK entity. The Prestige Brand has been in existence from 1936 which is currently owned by UK based Meyer Group.

Shareholding Pattern

TTK prestige research with details of shareholding pattern
TTK prestige research with details of major shareholders

TTK family members hold 70.41% of the total shares of TTK Prestige. T.T Krishnamachari & Co. is family owned firm with Mr. TT Jagannathan & his wife Mrs. Lath Jagannathan as partners. TT Mukund, TT Venkatesh & TT Lakshman are sons of Mr. TT Jagannathan.

Executive Management

(i) Mr. T.T. Jagannathan – Executive Chairman

Mr. TT Jagannathan is the grandson of Mr. T.T. Krishnamachari (group founder) & son of Mr. T.T. Narasimhan. He is a Gold Medalist from IIT, Chennai and holds a Masters in Operations Research. He was also at no. 87 on Forbes list of India’s Richest 2012. His age is 80 years.

He joined the company as Managing Director & now been part of BOD since 39 years. He received Remuneration of INR 13.40 crore for F.Y. 2019 which is 0.64% of net sales & 6.97% of net profit for FY19.

(ii) Mr. Chandru Kalro – Managing Director & CEO

He is not part of the TTK family. Mr Chandru joined TTK Prestige in 1993 & served as Chief Operating Officer of the Company till March 2015. Mr Kalro is part of BOD since 1995.

He began his career in March 1986 with BPL Limited, Chennai, in the sales department. He had a big hand in creating distribution network of TTK Prestige.

His remuneration for FY19 is Rs. 3.90 crore which is 0.19% of net sales & 2.03% of net profit of FY19.

(iii) Mr. T.T. Raghunathan – Vice Chairman

Mr TT Raghunathan is the brother of Mr. TT Jagannathan. He is on the Board since 1995. Mr Raghunathan mainly manages TTK Healthcare Ltd where he holds position of Vice Chairman & CEO.

(iv) Other Family members in Business

3 sons of Mr. TT Jagannathan are also involved in the family business:

TT Mukund – He is director in the company. Mr Mukund graduated from USA and did Ph.d (Physics) from Cambridge. He is presently Reader National Centre for Biological Services, Bengaluru. Age of Dr. Mukund is 43 years. His remuneration for FY19 amounted to Rs 24.30 Lakhs as sitting fee.

TT Venkatesh – He is son of Mr TT Jagannathan & holds the position of Deputy General Manager – Retail in TTK Prestige.

TT Lakshman – He is also under employment with the company.

Total Managerial Remuneration

Total remuneration of management for FY19 amounts to Rs. 19.12 crore which is 0.91% of net sales & 9.94% of net revenue for FY19.

Business Segments

TTK prestige research report with detailed of revenue segments
TTK prestige research report with details of revenue as per geography

Thus, besides pressure cookers from which the company started, TTK Prestige gradually diversified into various kitchen & home appliances.

Company’s UK subsidiary TTK British Holdings Limited (FY19 revenue of Rs 140.09 Cr) actively carries on distribution operations outside India. The subsidiary also added new range of products along with a new category called ‘Smidge’ focusing on environment friendly products suitable for home.

Product Categorization of the Company

(i) Pressure Cookers

TTK Group introduced Pressure Cookers for the first time into Indian Kitchen. It was introduced for making cooking safe for the users. For over six decades pressure cooker has been the part of kitchen appliances market. Though modifications have been done over the time, the brand won the trust of people. The segment includes several categories like Mini (upto 4 Litres), Junior (5-7 Litres), Senior (7.5 Litres & above), Outer Lid, Inner Lid, Clip On, Combo Set.

(ii) Non Stick Cookware

In order to match with the needs of Indian consumers, Prestige released the entire a range of non-stick cookware in the year 1994. This range includes – Kadai, Pans, Casserole, Handi, kitchen sets, clip on cookware, Chinese Wok, Paniyarakkal, Tawa etc.

(iii) Gas Stoves & Electrical Appliances

In the year 2001 Company launched Gas Stoves as well as a wide range of Electrical Appliances into the Indian kitchen Market. This range of Electrical Appliances includes products like Mixers, Grinders, Toasters, Ovens, Grill, Juicers, Choppers and Electric Kettle etc.  

(iv) Clean Home Solutions

In 2016 Prestige widened its horizons & further launched cleaning solutions products under the brand “Clean Home”. Under this brand company provides the products like Vacuum Cleaner, Floor Polisher, Steam Cleaner, Air Purifier, Fruits & Vegetable Cleaner, Water Purifiers and Cleaning Tools Etc.

(v) Induction & Electrodomestic Appliances

Company also provides Induction & Electrodomestic Appliances like Chimneys.

(vi) Tools & Accessories

Prestige also provides various Tools and Accessories like Gas Spares, Flasks, Water Bottles, Rechargeable Lanterns etc.

Distribution Network

TTK Prestige has network of 65,000 outlets in India with 16,000 direct touch point. The distribution network includes dealers as well as own exclusive retail stores. Also the company has service network for call centre operations so as to ensure timely service & customer loyalty. It also provides the platform to increase sale of original spares.

Thus, the distribution network includes –

  • Prestige Xclusive (own retail outlets)
  • Traditional Trade (authorised distributors & retailers)
  • Modern Trade (Hypermarkets, supermarkets & malls)
  • Institutional buyers
  • Online ( as well as E-Commerce Platforms)

The distribution network is spread across India over 27 states & more than 350 towns.

TTK prestige research report with details of distribution

Prestige xclusive stores contribute around 15% of the sales. Also, sales growth of stores is simultaneous with the overall sales growth of the company.

Key Financial Parameters

(i) Revenue Growth

TTK prestige research report with details of sales growth

(ii) Segment Sales Growth

TTK prestige growth in cookers segment
TTK prestige growth in cookware segment
TTK prestige growth in gas stoves segment
TTK prestige growth in appliances segment

Other Kitchen & home appliances as well as cleaning solutions grew for FY20. All other core segments’ sale impacted heavily on account of COVID-19 pandemic.

(iii) Free Cash Flow

TTK prestige growth in free cash flow

TTK Prestige sales impacted in 4th quarter due to COVID-19 pandemic & thus overall reduced by 1.61% for FY20. Also, the PAT margin for FY20 reduced to 8.9% from 9.13% in FY19.

But, the company maintains a healthy free cash flow. Cash flow from operating activities increased to Rs 254 crore in FY20 from Rs 94 crore as on 31 March 2019. This is majorly on account of improvement in working capital efficiency.

The company also maintains an average dividend payout ratio of 15-20% each year. In FY18 TTK Prestige paid Rs. 70 crore on account of buy back of shares.

Advertisement & Sales Promotion

TTK Prestige maintains a constant ratio of sales promotion expense each year as 7-8% of revenue from last 10 years. Prestige has maintained its brand name across all kitchen & other related appliances. The management believes in advertising aggressively in all print & TV medium. Following this principle, the management expects to actually garner share because of superior position in the market.

Market Share

TTK Prestige holds significant market share across its product segments:

  • Cookers segment: 36% market share in value
  • Cookware: 38%
  • Induction cooktops: Around 25%
  • Mixer Grinder: Ranks number 3 in the industry

The appliances segment includes several product categories & large number of players. Also, TTK Prestige appliances segment is now growth segment. Cookers & cooktops segments are fully penetrated.


(i) ROCE

ROCE calculated from FY17 onwards excludes Goodwill

TTK Prestige Return on capital employed

(FY17 onwards represent consolidated results)

ROCE calculated including Goodwill

ROCE of TTK prestige including Goodwill

(ii) Earnings

TTK prestige research article with details of Net profit growth

Results for FY18 include exceptional income of Rs 128.96 crores on account of monetization of the development rights relating to the Dooravani Nagar Property.

TTK Prestige Earning Growth is good & we can expect good revenue & earning expansion ahead after current abnormal circumstances. But return on invested capital (ROCE) did not expand in last 2 years.

  • As on 24 July 2020, market cap of TTK Prestige is Rs 7,606.03 crore.
  • Cash & Investment as on 31 March 2020 amount to Rs. 389 crore.
  • P/E = 40.98
  • EV/EBITDA = 27.22
  • Thus, Earning yield comes to around 3.67% which is low.

Growth Drivers & Opportunities

(i) New Product Launches

TTK Prestige introduced 109 SKUs in FY17, 138 SKUs in FY18, 146 in FY19. In FY20, new SKUs introduced count to 146. The target for FY21 is 100 SKUs.

The company is well diversified.

In FY17, company launched cleaning solutions & received good response. The segment is key growth driver. This is because more people are doing without house help. Then in FY18, the company introduced Tatva range of water purifiers. Also, in cookers & cooktops segments, there are new launch of variants. TTK’s new pressure cooker range, ‘Swachh’ also received healthy reaction.

Moreover, 80% of sales are from products introduced in the last 3 years.

(ii) E-commerce & online Platforms

Till FY20, E-commerce platforms accounted for 12-14% of the sales. As per management update, June 2020 sales are more than double from same period last year. TTK prestige is preferred partner for 2 e-commerce platforms. Further expansion of warehouses from current 4 shall enhance the positioning. Due to the COVID-19 pandemic, more people prefer not to visit stores & the same trend is expected to continue for unforeseeable period. Thus, E-commerce & online sales provide shall be growth drivers going forward.

(iii) Response to changing circumstances

Current pandemic situation gives way to trend of more people preferring for home cooked food. Thus, this is a positive factor for cookware segment as well as home cleaning solutions. Furthermore, certain PSK stores saw more than pre-Covid level average daily sales (10%+ in June) due to pent up demand. Due to absence of domestic help, increase in demand for
cleaning segment (2% of sales) was also visible.

(iv) Export Growth

The company has strong ambition on the export front and expects to scale up exports significantly over next five years. TTK has sufficient spare capacity to cater to the increased export demand from new customers that the company added in preceding years. In FY20 as well, the export revenue is almost double than the last year. Moreover, The company aims to reach Rs 500 crore export revenue in next 4-5 years from current level of Rs 51 crore.

Also, TTK Prestige acquired the company “Horwood” for brand expansion in Europe region. In FY17, TTK Prestige acquired Horwood which includes brands such as ‘Horwood’, ‘Stellar’ and ‘Judge’.

(v) Premium Product segment

In June 2020, TTK Prestige further introduced a new store format called “Prestige Lifestyle”, in the city of Bangalore. The store includes new range of chimneys, built-in appliances like ovens, countertop dishwasher, countertop grain grinder & more exclusive products not available at company’s regular stores.

The company shall also go for expanding the lifestyle stores from next financial year.

(vi) Appliances Segment

TTK Prestige target is to double the revenue over next 4-5 years. The same may get delayed some where on account of situation of pandemic. The appliances segment is expected to grow double digit to achieve the target.

The growth is expected from new products in all core categories within appliances. These include gas stoves, mixer grinders, small appliances, which are convenience appliances, rice cookers and chimneys.

The cookers segment is fully penetrated & shall have single digit growth ahead. Thus, the company secured benefit of diversification with applications segment.


  • Rural region sales: The rural sales affected because of rural stress as well as non-availability of credit from micro-finance channels on account of NBFC crisis. The rural sales for FY19 amounted to Rs 116 crore. The rural sales shall revive post July, as per management.
  • The growth is expected from e-commerce & online channel as well exports (when deliveries get normalised post COVID-19 factors)
  • Management aim of doubling the revenue over 5 years shall be broadly based on double digit growth in appliances segment with new product launches. Also, new product launches across core segments shall also facilitate maintaining market position.
  • On the capex front, the management indicated they would be incurring maintenance capex of Rs 30 crore as they already have sufficient capacity to meet the demand.
  • On the sourcing front, the management indicated that sourcing from China is around 10-11%. The company aims to replace that by September 2020 with local sourcing.

The demand of consumer goods industry is low on account of pandemic & resultant lockdowns. Thus, the same shall impact revenue & earning of the players.

Risks & Concerns

(i) Unorganized Sector and Regional Brands

While there are vast opportunities in the Domestic Market, Company can face threats in the form of unorganized Sector & irrational discounting by Regional Brands. As the entry barriers are low, any lag in innovation can impact growth.

(ii) E- Commerce Companies

Company may also have threats from other E-commerce companies. While E-Commerce Channels help Company to grow, may also have some impact on gross margin but Company stated that it pursues a dynamic cost management process to ensure healthy margins at EBITDA levels.

(ii) External Factors

Various External Factors which can impact the Company relates to fuel prices, floods, deficient rains, forex fluctuations etc. which may have an impact on input costs especially aluminium.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry’s Publications. 

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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