TTK Prestige acquires modular kitchen maker

TTK Prestige acquires modular kitchen maker

Shares of TTK Prestige eased 1.28% to Rs 10,536.85 apiece after the company acquired Ultrafresh Modular Solutions (40% from promoters and equity infusion in the company) for Rs 30 crore. The acquisition will be completed by Jan31. 2022.
Ultrafresh entered into modular kitchen business in FY18. For FY21, it reported turnover of Rs 12 crore (FY19- Rs 9 crore, FY20 Rs 13 crore).
Ultrafresh has developed infrastructure for design, development, sourcing and sale and marketing of Modular Kitchens. It also has a captive source for sourcing Modular Kitchen Accessories and appliances like Kitchen hoods which will become part of Ultrafresh.

The rationale for acquisition of Ultrafresh is based on the future growth prospect of the Branded Modular Kitchen business. The business is gaining ground with a fast expanding home construction industry and the aspirations of consumers to upgrade their kitchens.
Hence, 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
TTK consolidated turnover of Rs 2,700 cror. (including Rs 160 crore of UK subsidiary Horwood), thus this acquisition would be insignificant (less than 1% of current turnover).
The acquisition allows TTK to broaden product offering that have definite synergies with existing TTK products.

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