Prestige to spend Rs 300 cr on marketing; to launch water filters
Oct 06 2013 , Mumbai
The company is also looking at making a foray into newer categories like water filters this year.
"No more are women asking their husbands to buy cookware for them. But we wanted the old tagline, it was very popular in the 80s. So a modern context had to be put in and the new campaign was designed," TTK Prestige Chairman T T Jagannathan told PTI.
The advertising and marketing budget is Rs 100 crore for this year and Rs 300 crore (total) in three years, which includes the brand ambassador fee, he added.
The new television commercial, featuring the star couple, is already on air.
Talking about the company, Jagannathan said business has been good and TTK Prestige has grown 30 per cent CAGR over the past decade.
However, he admitted that the cookware business has been slowing down, especially in South, his major region. "If growth is 10 per cent (for cookware) this year, I will be happy," he said.
The Bangalore-based publically traded firm, which sells cookware and appliances like induction plates, mixers and toasters, clocked revenue of Rs 306.33 crore in June quarter while its FY13 revenue stood at Rs 1,358.48 crore, out of which about 45 per cent came come from appliances.
Jagannathan said the company is also looking at foraying into the water filter category. "We launch one (new) category in three-four years and this year we will launch water filters...Water filter category has big players, you have HUL in the business," he said, adding, the company's water filters will be priced about Rs 3,000 onwards.
"We will not be cheap but our products will be far superior and dealer margins would be better. We are talking of a completely different technology -- fibre technology, it is something that has not been seen."
He further said innovation is a key driver for the company and it spends 2 per cent of revenues on R&D. "We launch about 100 new products a year and 80 per cent of our products are less than five years old," he said, adding that for water filters, the company has tied up with a Swiss firm Vestergaard Frandsen for technology.
"The water filter market is Rs 3,000 crore and we are in a Rs 1,000-cr category, which is gravity filters. This is the largest category and the fastest growing category," he said, adding that other categories are UV-based and reverse osmosis (RO) based filters.