by Suhani Adilabadkar

The pressure cooker has changed kitchen lifesttyles across the world. In the Indian context, the jingle, “Jo biwi se kare pyar, Prestige se kaise kare inkar", is a well-worn, familiar tune. 18 years since this punchline and nearly 70 years of its value creator’s existence, TTK Prestige, still dominates the market as India’s largest home appliance company.

Quick Takes

• TTK Prestige boasts 45% market share of the Indian pressure cooker organized market followed by its close competitor Hawkins at 25%.
• The company has successfully diversified its product base, from 60% pressure cooker revenues to current levels of  14-15%.
• TTK expanded customer segments by launching the economy brand, ‘Judge’ providing low priced products.
• TTK Prestige aims to double its top-line over the next 4 to 5 years. 

India’s Favourite Kitchen-maker

It didn’t start with cookers. TTK Prestige launched in 1928 as an indenting agency catering to Cadbury’s, Lifebuoy, Lux, Ponds, Kellogg's, Horlicks, Mcleans to name a few. Production of pressure cookers started in 1950, and the company currently has 10 manufacturing units with five major brands Prestige, Manttra and the latest additions, Judge, Stellar & Horwood through the Horwood Housewares acquisition. With trust and quality as its core values, TTK Prestige has transformed into a ‘Total Kitchen Solutions Provider’ with several hundred’s of SKU’s amidst uncertain growth patterns impacted by monsoon, natural calamities, unfavourable government policies, crude upsurge and forex fluctuations.

Expanding the products in its portfolio

TTK Prestige boasts a 45% market share of Indian pressure cooker organized market followed by its close competitor Hawkins. Hawkins controls roughly 25% cooker pressure market with the rest left for regional and unorganized players. Hawkins has become the second best owing to lower innovation and poor product portfolio diversification against TTK Prestige’s aggressive brand promotion, product innovation, innovative design, strong manufacturing, distribution, sourcing and service capabilities. As a result, the stock market rewarded TTK Prestige with its stock rising 65% over past five years, while Hawkins has declined 6% since July 2014.

To maintain growth momentum, TTK Prestige expanded beyond pressure cookers, developing a diversified product portfolio encompassing Cookware, Gas Stoves and Domestic Kitchen Electrical Appliances. The company has successfully diversified its product base, from 60% pressure cooker revenues to current levels of just 14-15% of the total revenue basket as Home Appliances launched in 2005, and added mixer grinders, gas stoves, wet grinders, non-stick cookware, chimneys, and rice cookers making it a relatively resilient home appliances company with a stable revenue base.

TTK has also successfully targeted northern markets by introducing inner lid cookers and later in 2010 launched induction cooktops to make life easier for consumers suffering from LPG shortages.

Moving forward, the company has broad-based its product offerings, customer segments and geographical coverage. Product offerings have been widened by launching Cleaning solutions which include Water Purifiers, Vacuum Cleaners, Air Purifiers, Electric Mops, Window Cleaners, and Floor Polishers.  TTK expanded customer segments by launching the economy brand ‘Judge’, providing low priced products focused on relatively untapped consumer segments and making inroads into the unorganized segment. 

But it has not been an easy ride for Prestige in the current environment with slowing growth across various sectors, and especially the relatively defensive home appliances sector. After a strong FY16-18, TTK Prestige witnessed PAT de-growth of 26% YoY in FY19 forcing the company to take a re-look at itself, and re-energise for future growth.

And the company seems to have re-energised itself, evident from the various steps outlined for the coming quarters. TTK Prestige is slated to launch over 130 new SKUs across categories in FY 2019-20.  Export business in FY 18-19 saw a growth of 45% and the company plans to enhance this further in FY 20.

With respect to adding new product categories and their growth potential, Mr. Chandru Kalro, MD, TTK Prestige, said, “We are looking at water in a big way. We are looking at several new products in the cleaning area itself. We have added multiple products in the last 12 months, and the idea is to keep building. It is not just products, it is width of distribution, which is happening. We are seeing that this would be about 7% to 8% of our business in the next 2 to 3 years”.

And with respect to capacity additions, he further added, “There is a new line of stainless steel pressure cookers that we have added at the Coimbatore and Gujarat factory. We have also enhanced capacity of non-stick cookware and hard-anodized cookware and we have added a new line of inner-lid cookers in our Gujarat factory”. And lastly, capex of Rs. 100 cr for FY20 and the goal of doubling its top-line over the next 4 to 5 years. The company seems to be building steam for future growth.