TTK Prestige said it will acquire a majority 51 percent stake in Ultrafresh Modular Solutions, a move that will help the leading kitchen appliances company into the fast-growing modular kitchen solutions segment. The company has invested around Rs 20 crore to acquire a 40 percent stake and would put around another Rs 10 crore to acquire a majority 51 percent stake in Ultrafresh Modular Solutions, said Chandru Kalro, Managing Director, TTK Prestige.
The acquisition is in line with TTK Prestige's overall goal of becoming a total kitchen solutions brand.
"With this, we are foraying into the modular kitchen solutions segment. Idea is to get into the kitchen modular space, which is a very adjacent category to what we are doing and it's part of our vision document, which says that we want to do Rs 5,000 crore business by FY25 and out of this, Rs 1,000 crore will come through inorganic acquisition and this is one of them," Kalro added.
Ultrafresh Modular Solutions will continue to operate autonomously with the current leadership. When asked about the synergy, he said Ultrafresh will use the Prestige brand name wherever it is required.
"The logo is now saying Ultrafresh powered by Prestige. We will work together," he said adding "our range of appliances would also be sold in their stores and their products can also be offered to our stores."
According to Kalro, the modular kitchen market is currently over Rs 9,500 crore, of which only 25 percent is with the branded segment.
"It's a very fragmented market and is a high growth area," he said adding Indian modular kitchen market will grow at a CAGR of 20 percent during 2021-2026 and will hit Rs 23000 crores in the next 5 Years.
As part of the business collaboration, Ultrafresh Modular Solutions has opened its first experience center in Koramangala, Bengaluru. Currently, the brand has 120 studios and they have manufactured 5000 kitchens across the country.