BENGALURU: Kitchen appliance brand TTK Prestige Limited will acquire 51 per cent stake in Ultrafresh Modular Solutions, which is engaged in the business of modular kitchens and kitchen appliances, for Rs 30 crore. This is a strategic space relevant to the business of TTK Prestige, as Ultrafresh is in the business of modular kitchens since 2018, and its turnover in FY19 stood at Rs 9 crore.
In FY21, the turnover was around Rs 12 crore, the company said in an exchange filing. Branded modular kitchen is gaining ground with a fast-expanding home construction industry. ResearchAndMarkets.com report says that the Indian modular kitchen market stood at USD 206 million in 2018, and it will grow at a CAGR of 27 per cent during 2019-2024 to reach USD 862 million by 2024.
Over the last three years, Ultrafresh has equipped itself with expertise in designing and established design studios and franchise outlets numbering 85 across India. This investment has significant synergies with that of the business of TTK Prestige. Ultrafresh will be able to leverage the expertise of TTK Prestige while aggressively growing the modular kitchen business of various kitchen accessories.
TTK Prestige will be able to leverage the network of Ultrafresh and enhance the reach of Prestige products in many new households. The acquisition will be completed within January 31, 2022 with cash consideration of Rs 30 crore towards primary as well as secondary acquisitions.