TTK Prestige Ltd to invest in Ultrafresh Modular Solutions Ltd

TTK Prestige Limited has entered into an agreement for making strategic investment in Ultrafresh Modular Solutions Ltd ('Ultrafresh'), engaged in the business of Modular Kitchens and kitchen appliances having many franchisee outlets across India.

Ultrafresh entered the business of Modular Kitchen in FY 19 and their turnover for FY 21 is at around Rs 12 Crores notwithstanding the impact of the covid related lockdowns.

This is a strategic space relevant to the business of TTK Prestige Limited engaged in the business of Kitchen & Home Appliances. Ultrafresh is in this business of Modular Kitchens since 2018 and has developed infrastructure for 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.

Branded Modular Kitchen is gaining ground with a fast expanding homeconstruction industry and the aspirations of consumers to upgrade their kitchens. Thus, this investment has significant synergies with that of the business of TTK Prestige. It is expected to serve the long-term vision and growth of TTK Prestige.

Over last 3 years, the company has equipped itself with expertise in designing and established design studios and franchise outlets numbering around 85 across India. Ultrafresh will be able to leverage the expertise of TTK Prestige while aggressively growing the Modular Kitchen business of various Kitchen Accessories.

TTK Prestige will be able to leverage the network of Ultrafresh and enhance the reach of Prestige products in many new households.

The cash consideration of approximately Rs. 30 Crores is to be released in stages eventually leading to 51% equity shareholding of Ultrafresh Modular Solutions Ltd. At the initial stage TTK Prestige Limited will hold around 40% of the equity and after completion of the investment, will hold 51% of the equity of Ultrafresh.

Shares of TTK Prestige Limited was last trading in BSE at Rs. 10662.00 as compared to the previous close of Rs. 10551.05. The total number of shares traded during the day was 922 in over 420 trades.

The stock hit an intraday high of Rs. 10833.70 and intraday low of 10565.00. The net turnover during the day was Rs. 9903988.00.

Source : Equity Bulls

Keywords

TTKPrestigeLimited INE690A01010 UltrafreshModularSolutions ModularKitchens KitchenAppliances India Franchisee