Kitchen appliances firm TTK Prestige is eyeing double-digit growth this festive season and expects it to contribute over 30 percent to the overall sales this fiscal, a top company official said.
"We are expecting substantial growth during this year festival season. We had very good Onam sales, which generally sets the momentum for the festivals. We are expecting a little over 30 percent sales during September to November," TTK Prestige Managing Director Chandru Kalro told PTI.
He added that with the demonetisation last year, there will be a base effect and the company is expecting a double-digit growth this festive season, without quantifying the anticipated growth.
On advertising and marketing spends during the festive season, he said, "given the clutter, we spend close to 40 percent of our total budget during this period. Our spends are about 6.5 percent of revenues".
The company had clocked a turnover of Rs 1,603.64 crore last fiscal.
The Bengaluru-based company will focus on North market which sees a huge spike in sales during Dusshera and Diwali.
Category-wise, pressure cookers, cookware and small electrics are likely to sell more during the festive season, TTK Prestige EVP Sales and Marketing Dinesh Garg said.
"During festival season, all the categories do really well as kitchen items are the most bought products during the festival seasons.
"We do see a spike in the small domestic appliances sales during Diwali because of institutional orders. Corporate gifting creates a huge spike as does the marriage season which comes just after the festival. Therefore, pressure cookers, cookware and small electrics sell well," he said.
On the impact of GST, Kalro said, "there was a disruption as expected in the run-up to the implementation to GST and a large de-stocking in the channel. This is now settling down but still, glitches remain since the taxpayers have to get used to the new system and also the network has to settle down. However, we are seeing a good growth in our sales post implementation of GST".
Online currently contributes around 7 to 8 percent of the total sales and the company expects this retail channel to become stronger in future.
Prestige will also be launching new products in water purifier segment.
When asked about entering new categories, Kalro said, "we do believe there is a lot of space for product innovation in the existing category and we will keep coming with more and more new innovated products in all existing category".