TTK Prestige Ltd, a Hosur-based pressure cooker and kitchen appliance maker, is planning to begin construction of its facility near Vadodara in Gujarat in the second quarter of 2011-12. This is part of the company's Rs 225-crore capacity expansion plan slated to be completed during the first half of 2012.
In his address at the company's annual general meeting, TTK Prestige chairman T T Jagannathan said, “The acquisition of land has been completed and the construction of the factory is slated to commence during the second quarter of the current financial year.” The expansion plan is mainly funded out of internal accruals, he added.
It is to be noted that the company has recently announced completion of acquisition of a 60-acre land near Vadodara, to set up a manufacturing facility for pressure cookers and kitchenware products. The proposed investment for the project is around Rs 125 crore.
The proposed capacity expansion plan of Rs 225 crore would also cover facilities at Hosur, Coimbatore, Roorkee and in Gujarat, apart from other parts of western India.
The company expects to start commercial production in the expanded facility for pressure cookers in Coimbatore factory in September this year.
He said the company's pressure cooker facility in Roorkee was nearly complete and had already started commercial production recently.
As of June 30, 2011, the company spent Rs 100 crore on the expansion plans. It would resort to transient borrowing during the current financial year to fund the capital expenditure, pending accrual of internal cash generations, said Jagannathan.
