TTK Prestige set to buy Italian firm’s local unit

TTK Prestige Ltd, the maker of cookers and other kitchen appliances, is set to buy Italian firm Bialetti’s ailing Indian unit, called Triveni Bialetti Industries, to expand production capabilities.

The company plans to merge the entity with itself before the end of this fiscal.

TT Jagannathan, chairman, said the takeover will help the company expand faster in the non-stick cookware segment.

Triveni Bialetti has a state-of-the-art, automated manufacturing unit in Khardi in the Mumbai suburbs, which was set up to cater to Indian and global markets.

The parent company, based at Coccaglio in Lombardy, Italy, has already invested €6-7 million since 2008.

Though Jagannathan did not reveal the transaction details, sources said TTK Prestige has almost sealed the takeover for €3-4 million (abour Rs25-30 crore).

Early this fiscal, Bialetti sold its non-stick cookware unit in Coccaglio to TTK Prestige for €4 million that Jagannathan said will be carted entirely to Gujarat. This will nearly double company’s manufacturing capacities.

TTK Prestige had earlier announced an investment of RS225 crore of which, Rs100 crore has already been invested and the remaining will be invested in remaining quarters of this fiscal.

Bialetti formed a joint venture with the Gangar family, a local exporter of cookware products, in late 2007, and announced operations in early 2009.

Finding little success with its premium products and with business in Europe in turmoil, the company decided to exit India altogether.

Jagannathan said he was negotiating the takeover for a year in order to quickly expand the cookware business. “We had run out of capacities. The two plants put together should contribute Rs600 crore to business in 3-4 years,” he said.

He said the company should grow at a CAGR of at least 30% annually.