TTK Prestige has acquired 51 percent stake in modular kitchen maker Ultrafresh for a sum of Rs 30 crore. TT Jagannathan, chairman of the company, told CNBC-TV18 that they are looking at acquiring more companies that are operating in the same space.
“We are looking at several acquisitions starting from about Rs 100 crore to Rs 800 crore,” said Jagannathan. However, he said that he would not be able to give any further details since the company has signed non-disclosure agreements (NDAs) with all the companies that it is in talks with.
The company had earlier said their revenue growth target was Rs 5,000 crore by FY25. Last year, they did close to Rs 2,000 crore. So, when asked by FY25 how much of the Rs 5,000 crore target would be organic and how much would be through acquisitions, Jagannathan said, "Our projections show that organic growth would be about Rs 4,000 crore and the balance Rs 1,000 crore would come from acquisitions."
Throwing light on Ultrafresh acquisition, he said, "Ten years back when we started our exclusive stores, the inside decor was like a kitchen and a lot of the customers wanted to buy the kitchens. So we had got into the modular kitchen business but later got out of it because we did not have any end-to-end control over the business."
We were looking for a partner who could give end-to-end control because the market for that exists. We believe we could do to around Rs 50 crore in the first year and go up to Rs 500 crore in five years, he added.
He said Ultrafresh did not make any profits last year because of COVID but the year before that, it had made marginal profits. Going forward, the projections look good and over time, they would acquire 100 percent stake in the company, he confirmed.
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