TTK Prestige Conference Call Highlights

• The company has taken all the price increases that is required to offset the raw material price inflation across all the product categories.
• Last year, the e-com share was 24% for this quarter and this year, it is 32%. Due to covid and localized lockdown this share has increased. It will be normalized in the coming quarters to 25%.
• Margins are more or less same when it comes to the channel of distribution i.e. online, offline, etc.
• Ad spends will be back to normal of 6 to 7% of sales.
• Launched several new products during the last 7-8 months which are also healthily contributing to the cookware business.
• More than 35% ROCE is possible this year.
• Leaders in pressure cookers, cookware, gas stoves.
• The working capital has gone up this quarter because of increased production to avoid supply chain disruption like last year.
• Price hike on selected products was between 5% and 6%.
• Last year, there was at least 2 to 3 percentage point shift from unorganized to organized in cooker, cookwares and gas stoves.
• New product Svachh range of gas stoves: Premium range.
• New customer additions as well as increased offtake from the existing customers in the export market.
• Exports would have been better had they got all the containers that they required.
• Started exporting a bit of electric appliances as well.
• Judge brand currently is very small compared to the overall business and that is by design.

However, there are lot of things have been going on in terms of the product strategy, new marketing strategy for it. Judge brand to be a tactical brand and to be separate from the Prestige businessIn cookware segment, more than 50-60% of that segment is coming from the new products.

• In mixer grinder almost 70% of the sales is coming from models launched in the last 2 years.
• New outlet additions: More than 2000 outlet last year.
• Over 6 own outlets added as an experience outlets: More of niche products.
• Manufacturing: Dedicated vendors, largely exclusive to them. Strong product development department company has which gives their own proprietary designs.
• In cookware, nonstick has come back into fashion. Launched several new subcategories which is also adding to the growth, for example their focus on stainless steel cookware, cast iron cookware, Hard Anodised cookware, starlite cookware, which is also causing the increase in the cookware business.
• South- Non-South Revenue mix is 45%-55%, respectively.