Prestige to grow stores by 30% in 4 years
India’s kitchen appliances maker TTK Prestige plans to expand its store count by up to 30% over four years, as it bets the government’s income tax relief will aid consumer spending, a top executive said on Thursday.
To boost demand, TTK Prestige will expand in large towns, while also targeting growth in smaller ones, where consumption is increasing, CEO Venkatesh Vijayaraghavan said.
The expansion plan comes at a time when consumer spending is slowing in urban India, which in part resulted in a 6.4% annual drop in the company’s profit in the October-to-December period.
TTK Prestige, which sells a range of pressure cookers, cookware and gas stoves, operates about 680 stores across 375 towns.
Demand for kitchen appliances has been under stress over the last few quarters due to persistently high inflation, but Vijayaraghavan is betting the tax relief will help consumption.
Earlier this month, the government cut personal income tax rates in a bid to aid consumption across Asia’s third-largest economy.
India’s consumer-facing brands, including those in the $72 billion home and household goods sector, are ramping up investments in smaller towns, driven by rising incomes and urbanization that raise discretionary spending.
The company is increasing its marketing expenditure to capture more of the consumer spend, Vijayaraghavan said, without sharing details.
TTK Prestige faces headwinds in the form of higher prices of raw materials, including aluminum, which could push it to raise prices again.
“The current scenario is challenging for us, and we may not rule out (raising prices) over a period of time,” Vijayaraghavan said, weeks after the company implemented marginal price increases for select products.
