TTK Prestige, through its wholly-owned subsidiary TTK British Holdings Limited (TTK Brit), has acquired the business of UK-based Horwood Housewares Limited. The acquisition gives TTK an opportunity to increase its presence in Europe.

Speaking to Bloomberg TV India, TTK Prestige Chairman TT Jagannathan said the deal make immense sense as the 120-year old brand has an operating profit margin of close to 17 per cent. With the acquisition, TTK Prestige aims for double-digit growth in the top line and better profit margins in FY17. Excerpts:

Horwood has a double-digit EBITDA margin. Can you tell us the EBITDA in absolute terms?

The EBITDA has been about ₹30 crore, or £3.1 million.

So, can we say EBITDA margin is close to 20 per cent?

The EBITDA margin is close to 17 per cent.

What are the synergies that will be brought on the table for TTK Prestige?

A lot because Horwood Homeware is a very powerful brand. They operate largely in the UK and Ireland, but also have a presence in the rest of Europe. They do not have any manufacturing, which will be the biggest synergy. We can supply to them as their product synergies are largely the same – they sell cook wear, pressure cooker, and electrical appliances of the same type – so we can supply to them. This way, our exports will get a boost.

Horwood Homewares does not have in-house manufacturing. Does this mean this will boost utilisation levels?

Precisely, it will boost (the utilisation level). We have not figured out how much of a boost we will get. We have a management meeting next week in Bengaluru and we will know after that.

You hold almost 50 per cent of the market share when it comes to southern India. There are worries regarding retention of the southern market share…

We do not have any worries. If anything is growing, it is our market share.

There are companies increasing reach and marketing spend. Are you looking to increase marketing spend during FY17?

Yes, we will be increasing our marketing spend by 15 per cent in the peak season.

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