The commodity price increases have been happening since September and October of last year. And it has been across the board. And the company have taken two price increases in this financial year for the appliances and one in the case of cookers and cookware.
The maximum increase in the number of outlets has happened in the Financial Year of 2021 itself.
The company will strive to maintain growth at a CAGR of between 15% and 17% in its existing organic business.
The advertising and promotion spend for FY21 have been around that 6% and it’s at this level for a long time.
The Kharadi factory continues to be in lockdown for two quarters in a row. They had entered into an illegal strike which forced us to declare a lockout. And after that, there have been several rounds of mediation between the labor commissioner and the union.
Q4FY21 Highlights:
The Hard Anodised Cookware portfolio and most importantly, our exports on cookware are also doing exceedingly well
The company has taken a price hike in the products in between 17% and 19% in electric and take it about 13% in gas stoves and about 5% in pressure cookers and cookware.
From a trend perspective, TTK Prestige has gained market share in both pressure cookers and cookware and at least 100 to 150 basis points in both.
The manufacturing and outsourcing mix is in a share of 48:52.
It launched 15 SKUs in Q4 FY21.
Future Outlook:
As far as the impact of this COVID wave is concerned, TTK Prestige will need at least a couple of months to understand the full impact on the company’s demand.
CAPEX for FY'22 is around Rs.70 crores for now, but that's a dynamic figure, basically for doubling cookware manufacturing.
The exports are doing well, and the company is looking at the next couple of years as a strong window of opportunity for export business.
The company is in the talk about getting into cast iron which we have and looking at newer segments of creating newer sub-categories as we go along.
Good aftersales service is very important to a customer. And the company has taken a long time to build, and believe that is their true strength.
TTK Prestige does not see any demand reduction. And right now, not seeing the danger because the cost increases have abated and hopefully going forward the company will be able to maintain gross margins overall year-to-year.
TTK aspires to a 15%-17% revenue CAGR in the next few years, near-term demand is uncertain.
The company plans to launch around 120 new SKUs in FY22.
Distribution Channels:
TTL Prestige moved all the pressure cookers to the new Svachh platform, and it continues to be unique on that platform, no one else has that characteristic of product which prevents frothing and things getting dirty in the kitchen.
The maximum number of outlets have been added this year. Most of these outlets have been added in the Tier-2, Tier3, Tier-4 towns.
The other offline channels have grown faster than the online channels. Overall, today, online is 19% of the total business.
Capacity Increment:
In the Cookware segment, the company has almost doubled its capacity.
In terms of appliances, all the vendors have doubled their capacity for supplies as well in the market.
In terms of pressure cookers, the company is looking at maximizing the usage of machines to improve production right now.
Demand in the market:
The people change their Pressure cooker today under five years, not because of not being efficient, but simply because people get bored.
The good news and bad news is that TTK Prestige is not yet the leader in the mixer grinders. The company is aggressive there and it is getting more competitive as they go along.
This is a stable high growth market, and the company is also seeing that customers are buying more expensive products in this category which means that the customers are open to innovation and that gives us our sense of opportunities in that segment
The vacuum cleaner has done extremely well last year. They have expanded seriously on distribution in terms of the non-electrics into supermarkets, etc., and key geographies.
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