TTK Prestige Commits ₹500 Crore Investment for Business Expansion and Innovation

TTK Prestige Limited has announced a substantial investment of ₹500 crore over the next 3 financial years, beginning from Q4 FY 2024-25. The company’s Board of Directors has approved this investment plan, which is aimed at enhancing innovation, manufacturing, and market expansion while ensuring long-term business sustainability.

Allocation of Investment

The planned investment will be distributed across two primary areas:

• Operational Excellence: ₹200 crore will be allocated towards soft operational expenses, focusing on innovation, design, manufacturing and sourcing, logistics, and service. This expenditure aims to enhance the company’s go-to-market strategy with a clear market segmentation approach.
• Capital Expenditure (Capex): ₹300 crore will be invested in hard capital expenses to strengthen core business segments, including pressure cookers, cookware, and domestic kitchen appliances. The investment will also support targeted export clients, further expanding the company’s global footprint.

Impact on Business and Margins

The investment plan is expected to fortify TTK Prestige’s core business while fostering cost efficiencies and growth. However, the company anticipates a transient impact on operating EBITDA margins over the next eight quarters. This is due to the one-time soft investments, which may take time to translate into tangible cost savings and revenue growth.

Leveraging External Expertise

To ensure the effective execution of this strategic initiative, TTK Prestige intends to collaborate with external experts in specific domains. This approach will help optimise resources and drive efficiency in various operational and capital-intensive areas.

Share Price Performance

TTK Prestige share price was trading higher by 1.68% at ₹689.70 on NSE as of 11:56 AM on February 19, 2025. 

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