agencyfaqs! News Bureau
BANGALORE, August 28
The Rs 5.5-billion TTK group, the largest manufacturer of pressure cookers and condoms in the world, is likely to finalise the sale of its foods division by September this year. In the early nineties, the company had launched the popular 'ready to eat' snacks, Fryums, but it lost out to competition.
Currently, the company is aiming at acquisitions in the kitchenware segment. The potential targets have been identified and the acquisitions would be completed over a two-year period. Essentially, the company's focus is on kitchenware, healthcare and textile products and it is moving away from non-core areas of paper, printing and yarn manufacturing.
According to the company's chairman, T.T. Jagannathan, his company also sees a lot of growth opportunity in the branded clothing segment. Plans are underway to amalgamate the company's textile business with TTK Prestige Ltd., the company's flagship brand.
This follows the breakdown of its joint venture talks with Sara Lee Corp. Though there is no apparent synergy between TTK Textiles and TTK Prestige, the merger will help TTK Group clear its balance sheet. TTK Textiles will carry forward a loss of Rs 250 million in the eventuality of a merger, resulting in tax savings of Rs 100 million for TTK Prestige.
Jagannathan feels that there is a potential for the textiles division revenue to touch Rs 2 billion, having reached a revenue figure of Rs 300 million in the year 1999-00.
Apart from the restructuring involving acquisition in the kitchenware segment, group firm, TTK Healthcare, is set to sweep southern Tamil Nadu with its new range of over-the-counter herbal and ayurvedic products, early this September. The company's core brands include Chitra heart valve and Woodward's gripewater and ORS. The company is launching Athrid, an OTC formulation for arthritis.
The company currently has a joint venture with Seton Scholl Healthcare Plc for manufacturing condoms, and is contemplating another JV with the same partner to enter into branded pharmaceuticals, footcare and chemicals.
With all this happening, Jagannathan is optimistic about clearing up the company's balance sheets in a year or two and starting afresh on the growth path.
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TTK group on revamp mode
agencyfaqs! News Bureau