Private equity player Nalanda Capital-backed TTK Prestige has announced acquisition of 51% equity stake in Ultrafresh, an end-to-end modular kitchen solutions provider.
The Bengaluru-based listed homegrown kitchen appliances company has invested around Rs 20 crore to acquire a 40% stake and would infuse around another Rs 10 crore to acquire a majority 51% stake in Ultrafresh Modular Solutions, Chandru Kalro, managing director, TTK Prestige, told PTI.
TTK Prestige's stock ended with gains of 0.9% at Rs 820 per share during Monday's session.
“TTK Prestige has acquired a strategic stake of over 40% in the equity of Ultrafresh to forge a business collaboration between the two companies. The initiative ties-in with TTK Prestige’s overall goal of becoming a total kitchen solutions brand,” the company said in a statement.
“As a leader in the kitchen appliances space, making an entry into the Rs 9,500 crore modular kitchen industry is a natural extension for TTK Prestige as a brand. It is estimated that the Indian modular kitchen market will grow at a CAGR of 20% during 2021-2026,” the company added.
TTK Prestige, in which Nalanda Capital owns 3.5% stake, said its business was on its way to achieving double-digit growth, having made in-roads through products in multiple categories such as cookers, cookware, gas stoves and appliances.
As part of the business collaboration, Ultrafresh Modular Solutions has opened their first experience centre in Koramangala, Bengaluru with a 2,700 sq feet store. Currently, the brand has 120 studios and they have manufactured 5000 kitchens across the country.
TTK Prestige has seen strong demand for innovative and premium products, its chairman T T Jagannathan said.
“This initiative is reflective of our long-term vision of owning the entire kitchen space. For over six decades, our valued customers have come to rely on us as their kitchen appliances brand of choice. Today, we are pleased to go above and beyond by being a one-stop shop for all things related to the kitchen. We are committed to taking Indian kitchens on a journey of transformation, though our total kitchen solutions offerings,” said Kalro.
Dhruv Trigunayat, Chief Executive Officer, Ultrafresh Modular Solutions, said, “With obvious business synergy at product, channel, and infrastructure level, and mentorship from the team that has sustained market leadership for decades, together as Ultrafresh powered by Prestige, we are best placed in the industry to make the kitchen space our own.”
TTK Prestige is part of TTK Group, which was started in 1928 and also operates in sectors such as healthcare to insurance. In 2014, public market focused PE firm Nalanda Capital had picked 1.5% stake in the kitchen appliances maker, which also had investment from Cartica Capital.
A year later, Nalanda Capital hiked stake in TTK Prestige to over 3%. Nalanda's shareholding stood at 3.49% as on March end 2022.
TTK Prestige has been making domestic and overseas acquisitions over the recent years. In 2016, TTK Prestige had acquired UK-based cookware firm Horwood Homewares to expand its global operations.
Two years ago, it decided to end its Australian joint venture with Ecolife International Pty Ltd writing off its investment in less than a year of setting it up.
