“TTK Prestige Results conference call”

January 31, 2011

MODERATORS: MR. T.T. JAGANNATHAN – CHAIRMAN, TTK PRESTIGE

MR. S. RAVICHANDRAN – MANAGING
DIRECTOR, TTK PRESTIGE
MR. K. SHANKARAN – DIRECTOR, CORPORATE
AFFAIRS, TTK PRESTIGE
 TTK Prestige
January 31, 2011

Moderator Ladies and gentleman, good evening. This is Rochelle, the moderator for the Conference Call with TTK
Prestige hosted by Collins Stewart Inga Private Limited. We have with us today Mr. T.T. Jagannathan,
Chairman of TTK Prestige along with Mr. S. Ravichandran, Managing Director of TTK Prestige and Mr.
K. Shankaran, Director-Corporate Affairs of TTK Prestige. At this moment all participant lines are in the
listen-only mode. Later we will conduct a question and answer session. At that time if you have a question
please enter * and then 1 on your touchtone telephone keypad. Please note that this conference is being
recorded. I would like to hand the conference over to Mr. T.T. Jagannathan, Chairman of TTK Prestige.
Thank you and over to you sir.

T.T. Jagannathan Good afternoon. My name is T.T. Jagannathan, Chairman of TTK Prestige. Welcome to all of you for the
conference, you have seen our quarterly results we have grown the top line by 61%, bottom line by 91%
for the quarter and for the half-year we have grown the top line by 50%, bottom line by 60%. Company is
doing extremely well and its poise to do better, I await your question.

Moderator Thank you very much. Our first question is from the line of Nirjar Handa of M3 Investments, please go
ahead.

Nirjar Handa Could you tell me in the first nine months this 581 odd crores of net sales that have what would be the
rough split between pressure cooker, cookware and other appliances?

T.T. Jagannathan Pressure cooker 245 crores. The cookware 113.

Nirjar Handa Okay, others 208.

T.T. Jagannathan Others 208, that is whole the appliances. Then miscellaneous about 22.

Nirjar Handa Okay. And out of this you are only manufacturing press cookers and cookware or have you started
manufacturing appliances also?

T.T. Jagannathan No, as of now we make only pressure cookers and cookwares.

Nirjar Handa And going forward what are the plans to manufacture appliances?

T.T. Jagannathan There are plans we have actually setup a factory in Roorkee to manufacture appliances, it’s not yet
gone into production. We will start in the year 11-12.

Nirjar Handa Okay. It will start and is this also in our tax exempt area?

T.T. Jagannathan Yes, it is.

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Nirjar Handa Both excise and income tax, right?

T.T. Jagannathan That is correct.

Nirjar Handa Okay. And one more thing, do you have a sales number for the nine months of last year for
pressure cooker which is 245 this year?

T.T. Jagannathan Last year it was 185. Cookware 64. Other items 116. And then others are about 16 crores.

Nirjar Handa Okay. And so that means you grown pressure cooker value terms by about 32%?

T.T. Jagannathan That is absolutely.

Nirjar Handa So what has been the industry growth in your estimate?

T.T. Jagannathan There is no data for this but we estimate around 10%.

Nirjar Handa By values, is it?

T.T. Jagannathan By volume, value would be about 15%. That’s for the estimate. There is no data available.

Nirjar Handa Okay. And roughly what would be the state of the organized sector if that is possible to?

T.T. Jagannathan Again it’s a big wild guess I would say the organized sector value would be about 75% and
unorganized 25 in value.

Nirjar Handa In value terms.

T.T. Jagannathan Yeah.

Nirjar Handa Okay. Thank you very much and all the best for the future.

Moderator Thank you Mr. Handa. The next question is from the line of Shivani Mehra of Techno Shares &
Stocks, please go ahead.

Shivani Mehra Sir, I just wanted to know of what would be our capacities in the major segment currently and what
would it be going into FY12. Along with what is the CAPEX that is going into for increasing the
capacity sir?

T.T. Jagannathan Current capacity of pressure cooker is about 4 million, 40 lakhs cookers a year. And cookware is
about 30 lakh cookware a year. We are adding of about 60 lakhs pressure cookers per year as

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capacity. And another 75 lakhs cooker per year as capacity. So and the total investment capacity
will be the range of 250 crores. Over the next 12 months. We will also be adding marginal capacity
in appliances.

Shivani Mehra Okay sir. Sir, any new product or any new line that we have feel that-, where the company looking
at to entry for new growth prospect?

T.T. Jagannathan Yes, we are getting a full automatic hard anodizing plant.

Shivani Mehra Hard anodized okay cookers, yes sir.

T.T. Jagannathan Fully automatic plant flat that produces 5 million pieces a year.

Shivani Mehra Okay. And this is mainly an export product, right sir?

T.T. Jagannathan No, it’s mainly India.

Shivani Mehra Okay mainly India. Sir, what were the exports for Q3 this year and Q3 last year sir?

T.T. Jagannathan Five crores this year, last year four crores, this year five crores.

Shivani Mehra Okay, Q3.

T.T. Jagannathan Yeah.

Shivani Mehra Okay sir. I just wanted to know, how is the distribution network now currently between North
Indian and South India, we are seeing more, you see growth and traction basically in top line
coming in because we are moving more from South India to North India, the incremental growth
sir?

T.T. Jagannathan We are growing very well both in South India and non South India.

Shivani Mehra Sir is there is a division between distribution network between North and South, if you could give
me and how they moved in the last two-three years, how have they increased our distribution?

T.T. Jagannathan In the nine months we have grown equally in South India and North India.

Shivani Mehra Okay. Thank you sir.

Moderator Thank you Ms. Mehra. Our next question is from the line of Umesh Gupta of Reliance Wealth
Management please go ahead.

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Umesh Gupta Yeah, one question on your capacity you are saying you have about four million cooker capacity
right now and you are putting another six million cooker.

T.T. Jagannathan Correct.

Umesh Gupta I am assuming you have about 40% market share in the overall cooker capacity market.

T.T. Jagannathan Yeah.

Umesh Gupta If you put six million more, you would be more than the overall market. So, don’t you think there
will be an over capacity kind of situation?

T.T. Jagannathan No, you are assuming that market is not going to grow, market is growing plus there is a huge
opportunity for export which we are going to tap. And capacity is not for next 12 months, we are
setting up capacity for next 12 months for the next five years.

Umesh Gupta No, but if you have a capacity of lets 10 million cookers available with you around next year
onwards. And if you are not utilizing that capacity which means you are under utilizing your
CAPEX?

T.T. Jagannathan No, leaving the cookware and pressure cooker industry the capacity build up is not very expensive
and you always have to build up vastly more capacity than you require because you don’t know
when the market is going to grow. The current capacity was set up in 2001.

Umesh Gupta Okay. And on the exports front what kind of annual volume do you think, you would be able to
generate one year, two year down the line?

T.T. Jagannathan We are currently doing about a million cookers; we expect that to go up to two, three million.

Umesh Gupta Two, three million cookers, on the cookware side?

T.T. Jagannathan On the cookware side we are developing brand new technology in cooker, we are currently very
little cookware but we expect it go up substantial quantity.

Umesh Gupta Okay. And on this export side I was reading some old interview of yours probably, you are present
in the export market but you withdrew from that export market because of some concerns in the
payment and you probably had a write off also. So what is changed for the export market now and
what are you learn from that experience?

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T.T. Jagannathan We were present in the US in a big way and with our own brand and our own company and out
there, we withdrawn only from the US, we have not withdrawn from the export market.

Umesh Gupta Okay. So what were the problems in the US market and have you entered again in the US?

T.T. Jagannathan We are investigating, the US market is really in bad shape and we had bankruptcies andwrite offs .
The US market went a really bad patch and we got hurt in the bargain and we decided that we will
withdrew temporarily, regroup and see what market does n the future and then decide.

Umesh Gupta Okay. What is the export model currently, do you have your own subsidiary there which does the
business in your own name or you have the distributors led model there?

T.T. Jagannathan We had our own subsidiary there which is now still there; it should not closed down, but is
dormant. We are now using a distributor in the US.

Umesh Gupta Do they use your brand or do they have their own branding?

T.T. Jagannathan No, they use our brand they are distributors.

Umesh Gupta So the brand name is Prestige.

T.T. Jagannathan Brand name is Mantra actually and we also have Prestige in the US, yes.

Umesh Gupta Okay. So what kind of payment terms are there with the distributor or what I am trying to
understand are these models similar to what you have in India or is it different?

T.T. Jagannathan The model is different what you asked we have in India and I am afraid I cannot discuss payment
terms with you.

Umesh Gupta Okay. But have you had any write off or any bad payments in let’s say last three-four years?

T.T. Jagannathan No.

Umesh Gupta Okay. And secondly on this capex this 260 crores, should the entire capex you will be spending in
FY12

T.T. Jagannathan No, some would come in FY13

Umesh Gupta Okay. And how are you going to fund this capex?

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T.T. Jagannathan By the end of this year we should do about 100 crores in cash, we expect to get another 100 crores
in FY12 that will fund about 200 or 250 we will borrow about 50, 60 crores which can be paid back
in FY13.

Umesh Gupta Okay. And finally coming on the demand, you said that in the first nine months you have seen
similar demand in North India and South India?

T.T. Jagannathan No I said the growth in value is same in North India and South India that’s what I said.

Umesh Gupta Growth in value is the same between north and south India.

T.T. Jagannathan Yes, between South India and other parts of India.

Umesh Gupta Okay. So what we are trying to understand, what is your strategy for North India expansion and
how far have you reached in terms of your distribution in North India?

T.T. Jagannathan We always had a very good distribution in North India, it is just that we did not have right product
we produced outer lid cookers and North India is largely inner lid cookers market. For last three
years we have not produced Inner Lid cookers and so we are getting larger market shares. But the
distribution set up existed even before that

Umesh Gupta Okay. And what is your breakup of revenue in terms of geographically if you could highlight a ball
park between North, South, East and West, what are the three categories?

T.T. Jagannathan I am afraid that is very confidential information, I don’t think we should give you that.

Umesh Gupta Okay. And you said that you have been in North India for a very long time, but in terms of brand
competiveness that you are definitely much better in the South India and so what are the steps you
are taking to gain a larger foot holding North India is a strategy same only that differences are you
are now Inner Lid cookware or you find there is something different in the North India?

T.T. Jagannathan I must correct you in the brand survey that was done by super brand and Mera brand and master
brand three different organizations, our branch is varied from North India. So it is not true, that we
are only in South India, we didn’t have the right product, the brand, always been very salient

Umesh Gupta Okay. And what are your distributions, strengths on our overall basis in terms of the number of
outlets?

T.T. Jagannathan We are available at about 45000 outlets.

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Umesh Gupta And what would be the target outlet in your opinion which are still to be tapped or lets say what
kind of expansion could there be in terms of this number of outlets?

T.T. Jagannathan I would expect range 8% to 10% growth every year.

Umesh Gupta 8% to 10% growth every year. And where is the most demand coming from is it from metro or
Tier1, Tier2, if you could tell us about the difference in growth between different kind of cities?

T.T. Jagannathan It is actually uniform at metros Tier 1, Tier 2 at all levels uniform growth.

Umesh Gupta Okay. What kind of growth rates do you expect for the next two-three years?

T.T. Jagannathan If the economy continues growth at 8% to 8.5% and the interest rates continue to hold at current
levels then we do expect to grow topline by between 30% and 35% going forward.

Umesh Gupta You know, the economy as always been growing at about 7, 8% for last six, seven years, but you
are not growing at –

T.T. Jagannathan I am sorry you can go and look at our growth rate for a last, for eight years is been 35% CAGR.

Umesh Gupta No, right but off let in the last four to six quarter you have grown much faster than your historical
rate?

T.T. Jagannathan Thank you. but I am expecting that going forward it will be revert back to 35%.

Umesh Gupta And what is the risk in your opinion in GDP growth declining, what do you think could derail this
35% growth rate.

T.T. Jagannathan Severe raw material prices which of course is a risk and we will have to increase our price fairly
dramatically that will slow the market down. But it’s not showing up right now.

Umesh Gupta And how do you mitigate the commodity risk,

T.T. Jagannathan We cannot mitigate that commodities rise, if annually raw material price goes up up we will have to
absorb it and pass it onto the consumer

Umesh Gupta And does it happen in the same quarter or it’s with a significant lag?

T.T. Jagannathan That depends upon various things in the market.

Umesh Gupta Okay. So you think that you will be able to maintain the current margin given the…

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T.T. Jagannathan I expect that …as a last quarter margins been 18% EBITDA, we expect to maintain to 16% and
17% EBITDA.

Umesh Gupta 16% and 17% okay. Thanks I will get back in case if I have further questions.

Moderator Thank you very much. Our next question is from the line of Shashank Tulsyan of SBI Mutual
Fund, please go ahead.

Shashank Tulsyan Sir, a very basic question could you give us a nine month figures, if you could give us only the
quarterly numbers or Q3 FY11 and Q3FY10.

T.T. Jagannathan Repeat the question please.

Shashank Tulsyan I think you had given us nine month segmented breakdowns. Could give us only three months
segmented based on that we really breakdown.

T.T. Jagannathan Pressure cooker is 91 crores, cookware 49 crores and appliances about 91 crores, others 8 crores.

Shashank Tulsyan Okay sir. And that gas stoves and electrical appliances.

T.T. Jagannathan I cannot do that.

Shashank Tulsyan Because okay, last con call you had done that, no problem sir. Now what is the Q3FY10?

T.T. Jagannathan 66 crores for pressure cooker, cookware 26 crores, others 52 crores and there is appliances 52
crores, other is about 6 crores.

Shashank Tulsyan Other is about 6 crores. Sir that’s great, that’s all from my end as of now. Thank you.

Moderator Thank you Mr. Tulsyan. Our next question is a follow up from the line of Umesh Gupta of Reliance
Wealth Management, please go ahead.

Umesh Gupta I know you will probably not comment on the competition and what are the reasons. There is a only
one significant competitor, I would not name it, that looking at the numbers they have been facing
problems all around right from the top line to bottom line on the commodities and the raw material
and we have not seen anything like that and your number. So without commenting specifically on
that particular competitor, could you tell us what exactly is different from what you are doing in the
market?

T.T. Jagannathan Sir I will give you all the information on TTK Prestige that you asked me, I refuse to answer any
questions on the competitor, please call them and ask them.

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Umesh Gupta No, I am asking you, is it only because you have extended in terms of the cookware and appliances
which is dragging growth for you even in the cookware probably because the brand has extended or
is it like the market itself is growing and you have just been able to tap that market correctly. What
is the specific reason for your growth?

T.T. Jagannathan I already said that we are growing much faster than the market is so we are certainly getting market
share in the market and as far as we are concerned.

S. Ravichandran We are built enough capacity in the last three years to give me the demand, we are building
capacities that’s the reason why we are able to grow our share very nicely.

Umesh Gupta Okay. In the cooker, in the first nine months what is been the volume growth for you?

T.T. Jagannathan About 35%.

Umesh Gupta And the value growth?

T.T. Jagannathan 32%.

Umesh Gupta Okay. So it’s still a largely volume driven growth and you think that if you continue to do like in
terms of the realization, this will continue to fall may be on a slightly lower rate or do you think
that the realization will also start going up considering the commodity prices have hardened?

T.T. Jagannathan Sir currently the realization will follow the commodity prices, if the commodity prices harden, the
realization will go up.

Umesh Gupta Are you seeing that in the last few months?

T.T. Jagannathan Yes certainly the impact is up by 6% in FY11.

Umesh Gupta On the pressure cooker.

T.T. Jagannathan That is correct.

Umesh Gupta Okay. And how is that trend in the cookware is similar in terms of volume growth and –

T.T. Jagannathan Similar, in terms of cookware the volume growth is much higher. Cookware value growth is 76%
for the nine months and volume growth is about 90%.

Umesh Gupta Okay. And would you be able to give some ballpark number in terms of the sales through these
large format retail stores…

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T.T. Jagannathan 10% of our sales is through large format retail store.

Umesh Gupta And is the growth rate similar there as the overall growth rate?

T.T. Jagannathan Yes, very similar.

Umesh Gupta Very similar okay. Thank you.

Moderator Thank you Mr. Gupta. Our next question is from the line of Ruchita Maheshwari of Nirmal Bang
Securities, please go ahead.

Ruchita Maheshwari Sir, I just missed the CapEx number, can you tell me what is the CapEx for FY11 and for FY12?

T.T. Jagannathan Going forward over the next 15 months it will be 250 crores.

Ruchita Maheshwari Okay. And sir how you are going to fund it?

T.T. Jagannathan We will have about 100 crores in cash by the end of this year we will raise. And we will raise
another 100 crores in cash internally by next year by FY12 March. And that will fund around 250
crores; we expect to borrow the balance and repay it by FY13.

Ruchita Maheshwari Okay. And can you tell me what is the revenue growth from rural and from urban, what is the
percentage?

T.T. Jagannathan It’s been uniform; the company growth has been uniform in the Tier-1, Tier-2, Tier-3 and metros.

Ruchita Maheshwari Okay sir. Sir, what do you expect, like the rural incomes are growing so do you think that revenue
will be more generated from the rural area or it will be like 50-50?

T.T. Jagannathan It will be like it is today, all the territories will grow uniformly.

S. Ravichandran See migration is a big thing in India. So the urban market is also driven by migration trends.
Therefore we will expect that the growth rate is urban and rural in India will be shaped by the
migrations and as well as the rural income growth.

Ruchita Maheshwari Okay. Are you seeing any raw materials pressure or if we are then how we are going to minimize it,
are we seeing any increase in the prices going forward?

T.T. Jagannathan I can’t guess as of now there has been a marginal increase price aluminum and almost flat in
stainless steel. I can only tell you if there are cost increases, we will pass it on to the consumer.

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Ruchita Maheshwari So are we sure of passing on the cost increase to our customers or will we see any volume decline
due to the raise in prices?

T.T. Jagannathan We have passed on cost increase successfully over the last 55 years. And if the cost increases are
very high volume do get impacted For instance one year we increased price by 80% volume
growth is dropped.

Ruchita Maheshwari Sir, apart from Prestige do we have any other brands or is it only Prestige?

T.T. Jagannathan In India it is only Prestige, we have another brand called Mantra for export but its very-very small,
about 1% of our total sale.

Ruchita Maheshwari Okay sir. Are we planning for any new launch of new appliances or?

T.T. Jagannathan Yes.

Ruchita Maheshwari Sir, what will be the timeline for that?

T.T. Jagannathan Q2-FY12.

Ruchita Maheshwari And what type of appliances will that be?

T.T. Jagannathan That I cannot reveal right now.

Ruchita Maheshwari Okay fine. And sir what is the percentage of revenue from the Prestige cooker?

T.T. Jagannathan What do you mean by, what is the revenue for Prestige cooker?

Ruchita Maheshwari Means, if suppose you are having 100 crores of revenue so how much does Prestige contribute to
that revenue?

T.T. Jagannathan 100 crores, we will get all the 100 crores. What is the question, repeat the question, Prestige is our
brand if we grow 100 crore Prestige grows by 100 crores.

Ruchita Maheshwari Okay. I was specifically asking the Prestige cooker?

T.T. Jagannathan You mean pressure cooker growth, 32% in value total 100 crore sale, 42% is pressure cooker.

Ruchita Maheshwari Okay. Sir, what will be the top line for FY12 any guidance for that?

T.T. Jagannathan We expect to grow by 35%.

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Ruchita Maheshwari And if you can tell me what will be the million units that you will be selling it FY12 compared to
FY11?

T.T. Jagannathan Well we sell about 4.7 million units.

S. Ravichandran Yeah, about a million pieces more in pressure cookers.

Ruchita Maheshwari A million pieces more. So what will be the FY11 number roughly?

T.T. Jagannathan About 3.7 million.

Ruchita Maheshwari 3.7 million so roughly FY12 will be 4.7 or 5 million.

T.T. Jagannathan Around 4.7 million.

Ruchita Maheshwari Okay. Thank you sir.

Moderator Thank you Ms. Maheshwari. Our next question is from the line of Abhijit Akella of JM Financial,
please go ahead.

Abhijit Akella Could you please quantify the market opportunity in terms of feature for product lines, or the
industry sizes rather?

T.T. Jagannathan I didn’t get the question, repeat the question please.

Abhijit Akella For cookers, cookware, appliances, what is the industry size and what is our market share within
each of those?

T.T. Jagannathan There is no hard and fast data unfortunately. But in, value we expect the market will be about 1000
crores give or take. We will do about 400 crores which is about 40%. Cookware market, there is no
data at all because cookware requires stainless steel, cottage industry everything and it is unknown.
But in the last cookware market we estimate size to be 800 crores; there also we will be doing
about 250 crores now. Appliance in market in total will be about 10000 crores, we do 250 crores.

Abhijit Akella Okay. Are we emphasizing any one of these categories where we see the bulk of future growth
coming or?

T.T. Jagannathan It will be in all the three categories.

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Abhijit Akella Right. And how do we differentiate ourselves against the larger incumbents lets say in the
appliances category where the currently a relatively small player, what is our unique preposition
there?

T.T. Jagannathan I would disagree that we are currently a small player. We are only in kitchen appliance where we
are a very large player.

Abhijit Akella Okay. What was the size of that be? I mean kitchen appliances as a segment how large could that
be?

T.T. Jagannathan The kitchen appliance, kitchen appliance segment is around 4000 crores.

Abhijit Akella And we said we are doing around 250.

T.T. Jagannathan That is correct. Everybody is very fragment, it is an extremely fragment in market.

Abhijit Akella Got it, okay. And what would you say TTK Prestige key strength relative to competition, is it
branding is it distribution reach, is it manufacturing expertise or all of the above?

T.T. Jagannathan All of the above.

Abhijit Akella Okay. All right, thank you so much.

Moderator Thank you Mr. Akella. Our next question is from the line of Amit Vohra of TCS Securities, please
go ahead.

Amit Vohra What is the cash currently on books?

T.T. Jagannathan About 50 crores as of now.

Amit Vohra Okay. Most of my questions have been answered, thanks.

Moderator Thank you Mr. Vohra. We have a follow up question from the line of Umesh Gupta of Reliance
Wealth Management, please go ahead.

Umesh Gupta Yeah, on the exports what are the currently exporting in terms of revenue and what are the main
export market where we are doing business?

T.T. Jagannathan Currently revenue is very small which is about 25 crores, it could go up to 30 crore this year may
be. And we export to UK, Middle East, Australia, South East Asia, Africa, and US nearly all over
the globe.

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Umesh Gupta So the reason for a small number is that we are currently now focusing on those markets or do you
think that the markets for us are not significant.

T.T. Jagannathan No, there was a capacity concern in FY11 and we decided that we serve in the Indian market first to
protect the brand and supply abroad. As and when the capacity constraints ease over the next year
we will start focusing more on export.

Umesh Gupta But you said next year also you will be targeting about 30 crores revenue?

T.T. Jagannathan We are targeting yes, the growth in export comes very slowly, its not like India.

Umesh Gupta Okay. Thank you sir.

Moderator Thank you Mr. Gupta. We have a follow question from the line of Ruchita Maheshwari of Nirmal
Bang Securities, please go ahead.

Ruchita Maheshwari Sir, are we planning for any capacity expansion as such?

T.T. Jagannathan I have given that details, I said we are going to be investing 250 crores over the next 15 months.

Ruchita Maheshwari Yeah, I just wanted to know in which? In pressure cooker or?

T.T. Jagannathan I also answered that question, pressure cooker we will go up from the current capacity from 4
million to 10 million, cookware will go up to from the current capacity of 3 million to 10 million, I
have answered both those questions.

Ruchita Maheshwari Sir, I joined late that’s why.

T.T. Jagannathan Okay.

Ruchita Maheshwari 3 million to and appliances will be.

T.T. Jagannathan Appliances we just investing a small amount in capacity expansion that will come probably in the
year FY13.

Ruchita Maheshwari Okay sir. And cookware from 3 million to, I missed that number.

T.T. Jagannathan 3 million to 10 million cookware and 4 million to 10 million pressure cooker.

Ruchita Maheshwari Okay sir. And what is the current capacity utilization as of now?

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T.T. Jagannathan I would say above 100%.

Ruchita Maheshwari Above 100%. Okay. And so by what time will these capacities be operationalize?

T.T. Jagannathan Hopefully, before the end of FY12.

Ruchita Maheshwari End of FY12.

T.T. Jagannathan Yeah before.

Ruchita Maheshwari Okay. Thank you sir.

Moderator Thank you Ms. Maheshwari. Our next question is from the line of Aliasgar Shakir of Elara Capital,
please go ahead.

Aliasgar Shakir Sir, I were just wondering, you gave the industry data in all the segments where you are operating,
which is pressure cooker, cookware, and appliances, what I was just trying to understand obviously
you have also outgrown the industry by quite a bit consistently. So what is the opportunity that we
see domestically in all these segments in terms of penetration what about the data that you probably
must be sourcing, what is the opportunity that we see in terms of growth, in terms of the maximum
maturity or saturation in any of these industries?

T.T. Jagannathan Nowhere near saturate in fact what’s happening is all sectors pressure cookers, cookware and
appliances have grown significantly, we expect growth to accelerate actually in the market.

Aliasgar Shakir In that case, where if I have to understand on the scale of one to 100 whatever in terms of
percentage, in terms of penetration where, we like at 20% or 80% of the market is still untapped or
they are at 80% or we are 20%, just to understand how large is the opportunity in this.

T.T. Jagannathan In pressure cookers I would say, the penetration about 40% but even those that 40% by second
cooker, third cooker, and throwing away the old cookers and buy new cooker as far as non-stick
cooker I don’t feel it has penetrated even 10%. So we got huge opportunity, same in appliances.

Aliasgar Shakir Okay. So cookware and basically appliances you are saying, we must at penetration as lesser than
10%.

T.T. Jagannathan That is correct.

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 TTK Prestige
January 31, 2011

Aliasgar Shakir Okay. And pressure cooker I think also when you say 40% I think is much of an inflated number
because in terms of household we may not have more than 20% household with pressure cooker
actually.

T.T. Jagannathan You may be right.

Aliasgar Shakir Okay. So then but again when you say 80% is untapped we would also have to factor that quite a
large part of this 80% remaining untapped also does not have the pertaining power to still buy an
appliance. So factoring all that I just wanted to understand, let us assume we are at 4000 crore
today, where do we see the market 5 years, 10 years down the line?

T.T. Jagannathan That is correct. Share is about, balance 80% . Over the next 10 year maybe we have the penetration
can go up from the current 10% to maybe 25%.

Aliasgar Shakir So that is the sort of growth?

T.T. Jagannathan Yeah, there is a large of growth levels in the market.

Aliasgar Shakir Right, thanks a lot.

Moderator Thank you Mr. Shakir. Ladies and gentleman that appears to be the last question, I now hand the
conference over to the management for their closing comments.

T.T. Jagannathan Thanks everyone for joining the conference call. I hope you had received sufficient replies for their
questions. In case if you had any further questions, you can always call us or e-mail-mail, we will
try to reply Thank you.

Moderator Thank you very much, members of the management team. Ladies and gentleman with that we
conclude this conference call. Thank you for joining us and you may disconnect your lines now.
Thank you.

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