TTK enters modular kitchen solutions space through acquisition of Ulrafresh
News: TTK Prestige has entered into an agreement for making a strategic investment in Ultrafresh Modular Solutions (UMSL) engaged in the business of modular kitchens and kitchen appliances having 85 franchise outlets across India.
View: TTK Prestige will acquire 51% in the target company at a cash consideration of Rs 30 crore valuing the company at ~ Rs 60 crore ( 5x FY21 sales of | 12 crore). The acquisition is a strategic space relevant to TTK Prestige, which is engaged in the business of kitchen & home appliances. Ultrafresh has been in this business of modular kitchens since 2018 and has developed infrastructure for design, development, sourcing and sale and marketing of modular kitchens. Branded modular kitchens are gaining ground with a fast expanding home construction industry and the aspirations of consumers to upgrade their kitchens. The investment in UMSL is expected to generate significant synergies with the business of TTK Prestige and expand its product portfolio. Also, TTK Prestige will be able to leverage the network of Ultrafresh and enhance the reach of Prestige products in many new households.