- 07 Sep 2022
- ICICIdirect Research
TTK Prestige reports stagnant entry level segment sales while premium segment continues growth momentumTTKPRESTIG - 693 Change: -4.70 (-0.67 %)
News: As per media reports , the management of TTK Prestige indicated that it is facing a slowdown in sales of entry-level cookware owing to high inflation, which is impacting the lower middle class while premium products are growing in double digits.
View: The revenue share of entry level is 60%. Over the last few years, the company has been able to increase the share of revenue from premium products from 30% to 40% of revenues. The entry level products sales growth has been stagnant owing to the impact on purchasing power of customers who buy entry level products. The premium segment is performing better and growing in double digits. The company is continuously focusing on introduction of new and innovative products to enhance consumer interest in its products across price points. The company, owing to its vast product bouquet, pan-India distribution network (north and south India both contribute 50% each of total revenues) with a presence across value and premium segment is comparatively better placed than smaller peers to garner sustained revenue momentum over the medium to longer term.