Shares of TTK Prestige spurted by more than 7 percent on the stock exchanges Tuesday after the Chennai-based kitchen appliances maker announced acquiring 100 percent equity in Silampos UK Limited, which owns Horwood Homewares Limited, table and cookware suppliers in the U.K.
The acquisition came a day after the company announced formation of TTK British Holdings Ltd.
The stock opened at Rs. 4,560 and rose to Rs. 4,696.50, but shed gains later to close at Rs. 4,527.15, 3.86 percent from its previous close.
"It (Horwood) is a leading brand owner and distributor of international brands supplying over 2,000 table and cookware products across key European markets," TTK Prestige said in a statement Tuesday.
While announcing the formation of TTK British Holdings, the company said the target (Horwood Homewares Limited) "is of the size of 18 million GBP per annum with a double digit EBITDA margin".
TTK Prestige said the transaction would enable to expand its global footprint besides providing access to European markets.
"Horwood brands will provide a strong footing for the rapid expansion of TTK's business in the European markets. We will combine the design, manufacturing and marketing capabilities of TTK prestige to expand and grow the Horwood business in the European markets," T T Jagannathan, executive chairman of TTK Prestige, said in the statement.
TTK Prestige has 10 factories and 23 warehouses, and caters to 50,000 retailers across India. The company has an international presence and through OE it supplies to the U.K., Europe, the U.S., West Asia Africa, South East Asia, Australia and New Zealand, according to the statement.
TTK Prestige is part of the TTK Group, which has business interests in consumer durables, pharmaceuticals, medical devices and health insurance.
The company reported revenues of Rs. 447.83 crore and net profit of Rs. 37.20 crore for the quarter ended December 2015.
Its rival Hawkins Cookers Ltd. posted revenues of Rs 147.22 crore and net profit of Rs. 6.61 crore for the December quarter.
In a note earlier, brokerage Karvy Stock Broking had said that monthly per capita expenditure (MPCE) has a direct co-relation with sales at Hawkins Cookers. "The MPCE on durable goods has increased from Rs.21 in FY05 to Rs.90 in FY14 in Rural India and from Rs.56 in FY05 to Rs.187 in FY14 in Urban India," it said in the note, citing Indian government statistics.