TTK Prestige to pick 51% stake in Ultrafresh Modular Solutions for Rs 30 cr
Mumbai: TTK Prestige plans pick up 51 percent stake in Ultrafresh Modular Solutions for a total consideration of Rs 30 crore to foray into modular kitchen solutions business.
TTK has already invested Rs 20 crore to pick up 40 percent equity in Ultrafresh Modular Solutions and will put another Rs 10 crore to acquire a total of 51 percent stake in the company, said TTK Prestige Managing Director Chandru Kalro.
"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 said in a statement.
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. The modular kitchen market is currently over Rs 9,500 crore, of which only 25 per cent is with the branded segment” said Kalro.