AGM: 23rd July 2015

TTK PRESTIGE LIMITED

CHAIRMANS SPEECH
I have great pleasure in welcoming you all to the 59th Annual General Meeting of your
Company.
GENERAL ECONOMIC SCENARIO
The Indian Economy during the financial year 2014-15 and the beginning of FY 2015-16
has witnessed several developments, both positive and not-so-positive, in every respect
- economics, commerce, politics, international relations, national security and influences
on account of global developments.
While the mood in the capital markets has, by and large, been buoyant general
consumer sentiment continues to be depressed affecting the demand for various
products. In particular the consumption by mass urban middle class and rural households has become more and more discretionary.
The GDP growth continues to be sluggish and is yet to recover from the impact of slowdown witnessed during the years 2011 to 2014. Lack of political consensus is impairing
the development agenda and policy reforms initiated by the new Government. However
it is heartening to note that quite a few infrastructure projects power, roads, irrigation,
etc., have been kick-started and the geographies where such investments are being
made are seeing economic recovery.
The international community has started seeing India as a promising destination for
business. If backed by policy reforms and ease of doing business initiatives, this
interest can turn into a major opportunity for industrial development and flow of
contemporary technology. Spurt in e-commerce platforms and steps like Digital India,
Smart Cities etc., can bring more consumers into the fold.
With expected near normal monsoon and Government Investments in infrastructure, it is
believed that 2015-16 can provide the necessary strong platform for GDP growth in
excess of 7% in the coming years.
FINANCIAL YEAR 2014-15
The Annual Report for the year has already been circulated.
As you are all aware, after growing at a CAGR in excess of 25% between 2002-03 and
2012-13 your Company saw a dip by about 4% in 2013-14, solely owing to a host of
external factors. This decline has been reversed in the FY 2014-15 by registering a
growth of 8% in domestic markets. Your Company ended the year with an all-time high
turnover of Rs.1421 Crores. Given the tight economic conditions, the base-effect, and
the customer preference for entry level products in select appliance categories, this
growth is significant.
Notwithstanding sluggish economic conditions, your company continued to invest in the
launch of new models/products, building markets and brand, manufacturing excellence
and keeping the Company ready for meeting future demand both domestic and global.
These are soft investments and absorbed a part of the gross contributions and had an
impact on the EBIDTA margins and the post-tax profits. The Post-tax profits stood at
Rs.92.3 crores as against Rs.111.8 crores in the previous year.

Your Companys strong derisking strategy pursued over the last one decade, has
enabled your company to withstand the onslaught of several external factors and remain
fundamentally strong with a strong foundation for improved earnings in the coming
years.
BRAND SALIENCE:
The brand Prestige is the core asset of your Company. Continued investment in brand
building has enabled your Company to maintain or improve market share in most of the
product categories across all geographies. Prestige continues to be recognized as the
Super Brand in the Kitchen Appliances segment. Prestige has also been recognized
as Asias most promising brand in the kitchen appliances segment.
MANUFACTURING EXCELLENCE TPM AWARD
I am happy to share with you that your Companys Coimbatore Plant has received the
TPM Excellence award from the Japan Institute of Plant Maintenance. Your Company is
the first consumer durable goods Company in India to receive this prestigious award.
The excellent practices of this unit are being implemented in the other manufacturing
locations. Such practices improve the operational efficiencies and worker engagement
and render your Company the most competitive in manufacturing further providing the
base for being competitive even in global markets.
RATING
Dun & Bradstreet has recognized your Company amongst the top 500 listed companies
of India.
CRISIL continues to rate your company as the strongest in fundamentals with a 5/5
rating for fundamentals.
DIVIDEND
Your Board of Directors have recommended a dividend of Rs.22/- per as against Rs.20/per share declared in the previous year. This dividend will account for a cash outflow of
Rs.25.61 Crores by way of dividend and Rs.5.21 Crores by way of dividend distribution
tax thus aggregating to Rs.30.82 Crores i.e. an aggregate dividend pay-out ratio of
33.4%.
FINANCES
Having completed the large-scale expansion programme and tightened working-capital
management, your Company has become debt free and carries a sizable free-cash.
Your Company will continue to have tactical lines of credit at cheaper rates which will
enhance the returns from treasury management.
FINANCIAL YEAR 2015-16:
The economy is yet to recover fully from the sluggish phase being experienced over the
last two years. During Q1 your companys domestic business grew by 6.4% while there
was a drop in exports as export orders were deferred to second half. Margins improved
as compared to the annualized margin of the previous year. The sale for the quarter was
Rs.356.54 crores (PY Q1 Rs.344.20 crores; Trailing Quarter4 of FY 15 Rs.292.98
crores). During the quarter PSKs and on line trade registered impressive growths.

GOING FORWARD
During the last Annual General Meeting I made the following observation:
The last decade saw your Company overcoming several limitations and challenges,
both external and internal, and establishing itself as a leader in the small kitchen
appliance segment.
At this juncture I see a different set of challenges and therefore the need to reinvent and
reorient ourselves to meet these challenges. In my view the challenges encompass a
wider spectrum than before: - general economic situation both domestic and foreign,
ever-changing consumer expectation and behaviours, churning in channels reaching the
consumer, innovation and product offerings, human capital, government policies on
business and subsidies and last but not the least the emerging competition scenario.
Having established world class facilities across manufacturing locations, I look forward to
using the capacities optimally both for domestic and international markets. I do expect to
carve out export dedicated units within the current infrastructure so as to be competitive
in export markets. I will get back to you once the Company progresses further in this
respect.
Following the above observation the undermentioned actions have been initiated:
a. DIGITAL, E- COMMERCE & LOGISTICS
Your Company would like not only to be contemporary but think ahead. Your Company
has started making significant outlay for Digital Prestige not only for customers and
vendors but also for internal management. Your Company has been proactively working
on multiples initiatives in the digital space keeping in line with the changing trends and
foreseeing a significant scale of sales, marketing and customer service on digital
platform. Your Company has 3 websites & 2 Facebook pages.
Your Company has geared its own e-commerce platform and created a dedicated
modern fulfilment center for the South markets and will establish three more centres
across India during this fiscal. A host of products will be available for sale through this
channel.
Your Company will ensure its presence in key E-Commerce market places without
compromising its brand and competitive edge and has already entered into
arrangements with leading E-Commerce Platforms. Your Company is also in the process
of concluding tailor made products and promotions for each of such players.
Your Company is in the process of revamping its Supply Chain Management in
consultation with external experts of repute. The warehousing arrangements will be
comprehensively revisited based on the roll out of GST.
b. EXPORT ORIENTED UNIT (EOU)
Considering the potential for exports from the Companys state of the art manufacturing
facilities in Gujarat and taking into account the possible shift to India of a part of
outsourcing of kitchen appliances by Global Players, your Company has carved out a
100% EOU within the Gujarat Complex. Necessary investments have already been
made and it is expected that first dispatches from this Unit will take place during the
current Financial Year.

c. DEDICATED RURAL MARKET FOCUS:

Your Company believes that infrastructure development coupled with e-commerce will
open up opportunities to tap rural demand both through brick & mortar and e-commerce
channels. A team has been set-up to identify specific geographies and opportunities.
d. HUMAN CAPITAL :
Human Capital is addressed in three different ways. Structure, Development and
Optimal Deployment. The HR processes have been vastly fortified keeping in view the
growth strategy for the next decade. Where necessary right-sizing is being carried out
on a voluntary basis for mutual benefit.
e. INNOVATION & PORTFOLIO EXPANSION:
The innovation process has been further strengthened to develop a pipe-line of new
models and new-products. Keeping in mind the target consumer profile, the portfolio
of products dealt in by the company will be suitably augmented and diversified.
CONCLUSION
I acknowledge the support received from the shareholders, employees and banks in
putting the Company into the track of sustainable growth.