Ultrafresh Modular Solutions is engaged in the business of modular kitchens and kitchen appliances and has many franchisee outlets across India.
Ultrafresh was incorporated in 1992 and entered the modular kitchen business in 2018. It started with a turnover of Rs 9 crore in FY19 followed by around Rs 13 crore in FY20 and Rs 12 crore in FY21.Over last 3 years, Ultrafresh has equipped itself with expertise in designing and established design studios and franchise outlets numbering around 85 across India.
Ultrafresh will be able to leverage the expertise of UK Prestige while aggressively growing the modular kitchen business of various kitchen accessories. UK Prestige will be able to leverage the network of Ultrafresh and enhance the reach of Prestige products in many new households.
"Branded modular kitchen is gaining ground with a fast expanding home construction industry and the aspirations of consumers to upgrade their kitchens. Thus this investment has significant synergies with that of the business of TTK Prestige. It is expected to serve the long-term vision and growth of TTK Prestige," the company said in a statement.
The acquisition is for a cash consideration of approximately Rs 30 crore to be released in stages eventually leading to 51% equity shareholding of Ultrafresh Modular Solutions.
Initially, TTK Prestige will hold around 40% of the equity and after completion of the investment, will hold 51% of the equity of Ultrafresh. The acquisition will complete by 31 January 2022.
TTK Prestige rose 2.19% to Rs 9859.55 after the company's consolidated net profit rose 58.21% to Rs 103.53 crore on 34.86% increase in net sales to Rs 858.55 crore in Q2 September 2021 over Q2 September 2020.
In October, the company's board approved 10-for-1 stock split.
TTK Prestige manufactures kitchen appliances and cookware, under the Prestige brand.
Shares of TTK Prestige were up 0.22% at Rs 10685.05.
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