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amitdip
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Quote amitdip Replybullet Posted: 10/Nov/2009 at 10:32am
You are correct. After I read it, I was telling my wife on way back from office about this story. Author is a jacka$$

It struck me again when I took printout and re read and he did not write the name of official from TTK Prestige, I understood it as a story from someone planted in media who wants the price down on these jewels, sour grapes.

With 80% Rural India without cookers, and increasing product range, it has long way to go. 10% increase in aluminium which is itself only 55% part of raw material cost means nothing. I also came across a paper sometime back that there are about 250 regional cooker makers, if that did not do much...then this surely cant.

On a side note, I believe these are billion $ businesses if handled correctly. You must have read about Pampered Chef acquired by Buffett. It was started by one woman who left job to follow her passion at home, its reached or crossed 1 Billion US$ in sales, its got direct selling model.

http://www.pamperedchef.com/join_us/cju_your_life.html

Probably we should take consulting assignment with them :)


Originally posted by basant


This is a normal movement. WHat is this guy trying to talk about?

http://www.lme.co.uk/aluminium_graphs.asp
Originally posted by amitdip

In the last one month, though, the price of aluminium, which accounts
for 50-55% of the material cost has seen a price increase of around
10%. “How much of the cost increase can be passed on depends on market
factors, although history states that we have been able to handle
this,” said an official from TTK Prestige.
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rakhi183
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Quote rakhi183 Replybullet Posted: 10/Nov/2009 at 10:56am

The total raw material cost forms around 50% of the sales, and if 50% of the raw material cost is aluminium, then the aluminium consumption forms 25% of the total sales. Hence, for every 10% increase in the price of aluminium, the company would have to increase the sales price only by 2.5% (25%*10%)(excluding inflation) to maintain the same profit per unit sold. That should not be too difficult to pass on to the consumers.

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amitdip
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Quote amitdip Replybullet Posted: 11/Nov/2009 at 11:01pm
I asked TTK Prestige and they have no clue about who made that statement. I have written to HT Media and Authors of that article to state the name of official of TTK Prestige but they have not come back yet.

I was feeling glad for theequitydesk.com being there to air our views so clicked on few Ads to support

Edited by amitdip - 11/Nov/2009 at 11:04pm
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shivkumar
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Quote shivkumar Replybullet Posted: 11/Nov/2009 at 11:04pm
Originally posted by amitdip

I asked TTK Prestige and they have no clue about who made that statement. I have written to HT Media and Authors of that article to state the name of official of TTK Prestige but they have not come back yet.

I was feeling glad for theequitydesk.com being there to air our views so clicked on few Ads to support


No journo worth his/her salt would the name of a source. Even the editor would not know it. So don't try asking.
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PKB2000
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Quote PKB2000 Replybullet Posted: 11/Nov/2009 at 10:56am
Originally posted by rakhi183

The total raw material cost forms around 50% of the sales, and if 50% of the raw material cost is aluminium, then the aluminium consumption forms 25% of the total sales. Hence, for every 10% increase in the price of aluminium, the company would have to increase the sales price only by 2.5% (25%*10%)(excluding inflation) to maintain the same profit per unit sold. That should not be too difficult to pass on to the consumers.

Thank you
An interesting conclusion. I was little worried about Aluminium Price. But the beauty of this product is that people will not mind to pay 2.5%- 5% higher prices. Besides there are an increase in consumer purchasing power over past few years. But the stock price is going down at the moment- (who knows may be making ground for some more upmove!)
 


Edited by PKB2000 - 11/Nov/2009 at 10:58am
I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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amitdip
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Quote amitdip Replybullet Posted: 17/Nov/2009 at 10:29am
Circa 4 month old franchise in Hyd is doing very well.

TTKP has inner lid cookers like Hawkins but not vice versa. TTKP to expand in north india too which is Hawkins mainhold.

http://www.thehindubusinessline.com/iw/2009/10/19/stories/2009101950210400.htm

Subu et al. can you please update on how franchise is doing in your area ?

Thanks
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CHINKI
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Quote CHINKI Replybullet Posted: 17/Nov/2009 at 10:41am
As I had mentioned earlier, Franchisee at my place in Bangalore is also doing well.
TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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subu76
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Quote subu76 Replybullet Posted: 17/Nov/2009 at 11:28am
I have the same report. I've visited 2 different stores in Hyderabad and both seemed to be doing pretty well....so much so that the shop keeper ignored me completly.

Edited by subu76 - 17/Nov/2009 at 11:29am
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