TTK Prestige Limited (517506) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to TTK Prestige Limited Q3 FY '22 Earnings Conference Call hosted by Ambit Capital Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Dhruv Jain from Ambit Capital Private Limited. Thank you, and over to you, sir.

Thank you. Hello, everyone. Welcome to TTK Prestige's 3Q FY '22 earnings call. From the management side today, we have with us Mr. Chandru Kalro, Managing Director; Mr. K. Shankaran, Whole-Director; and Mr. R. Saranyan, the CFO of the company. Thank you, and over to you sir for your opening remarks.

Thank you, Dhruv, and thank you, everyone, for coming over. Just to summarize the quarter that just went by -- this is Chandru Kalro here, by the way. Just to summarize the quarter that went by, it wasn't easy. It was a quarter that was quite tough because of various issues that we were facing. One was that there were constant input cost increases right through from June, July, and that was something we were facing. There were weather vagaries, then there was Omicron back with us. Remember that we were starting the quarter with the base effect of the previous year. We had a wonderful quarter in the Q3 of the previous year, and we were on that base, and Diwali, as you know, was a little earlier this year than the previous year. So we're also coming back on a quarter of Q2 which was fantastic in the current financial year. With all that, I think we've done reasonably well. We've shown a marginal top line increase of about 5%. And what is most important is that we managed to pass on most of the cost increases, protected the margins. And also, we believe that we have largely protected market share while passing on the cost increases, which is great news. I now open the floor for any questions that you might have. Thank you.

[Operator Instructions] The first question is from the line of Sameer Gupta from IIFL.

Firstly, just looking at the [ geography ] on the COGS line in the stand-alone statement. This I'm computing as cost of materials, purchase of stock and trade and changes in inventory that you report in the P&L. So this is coming at 57.6% as a percentage of sales this quarter versus 60.1% last quarter. So just wanted to understand it in a better manner. What are the underlying components of this 256 bps improvement in light with the current inflationary situation. I know steel has corrected a little Q-o-Q, but rest all the commodities, I track are of the roof in most of the cases. So what exactly is constituting this? Is it just price increases, the sales mix, lower mix of e-commerce, any other variables that I might be missing?

So largely, this is a function of the price increases that have kicked in. That is one. Of course, the other 2 would also contribute in a smaller way in terms of the channel mix as well as model mix. So -- but largely, these are the price increases that have kicked in. You are right that when you say that there are cost increases that continue, while steel is probably the only commodity that has not increased as much as the others, we're still looking at an inflationary situation, albeit not at the same pace as what we've had in Q2 and Q3. We're confident that we can somehow maintain the margins in the band of, let us say, 57.5% to say 59%. That's where we are looking at, depending on which we have disclosed.

And sir, just a follow-up on that. Any more price hikes taken this quarter? I know you had announced some 5% to 7% last quarter. So any more taken on top of that this quarter?

No, no, no.

And sir, second and the last question from me, on the demand front. Let's leave this quarter, all the vagaries aside, but from the multiple commentaries that we are seeing across companies, we are basically sensing kind of a slowdown in demand, especially on the rural side. So what is has been your experience? I know categories might be different, but is there a real pressure in terms of incomes, because inflation is not only affecting companies but also people and their income. So what is your sense on demand and not only on rural, but overall?

So overall, if you see, what my sense is, honestly, is that the inflation is bitting the lower middle class. There is absolutely no doubt about that. The fact that we've also taken price increases is not -- is going to be easy on them. Having said that, we, as a brand, given the kind of target customers that we look at, we've not had a problem in our demand, albeit, I must add that the buoyancy that we were seeing earlier is not there. We're not seeing a drop in demand. We are not seeing a dramatic growth. However, having said that, there is another trend that we are seeing. If there is an innovation in the market, if there is a new product in the market, if there's a slightly more premium product in the market, there, there is absolutely no slackening of demand.

We'll move on to the next question that is from the line of Aniruddha Joshi from ICICI Securities.

Yes. In terms of -- while we have protected the margin, can you also highlight about the market share in the key categories that is cookers, cookware and some of the key appliances like mixer? What would be our market share now versus Y-o-Y?

The market share is largely stable. I won't say that it moved too much. Remember that all our market share data comes at least with a quarter's lag. So if you are asking me Q3, I don't think I will have the right numbers, we're just into January, January end. Having said that, from whatever I can see from the channel from our own collections, from our channel checks, we are feeling that we have maintained margin -- market shares as we go along. There's been no change there. And even if it has it might have changed very marginal.

Sir is it fair to assume that the market growth itself has slowed down in this quarter? Will it be a fair assumption?

No, I don't know whether we can say that. But as I said, the buoyancy that was there, that was because really galloping that is probably slowed down. I don't think demand has dropped. Now -- there is a difference between a slowdown and a drop in demand. The demand, I don't think has dropped.

Okay. But buoyancy has definitely kind of slowed down now?

The dramatic growth that we were seeing in the last 9 to 12 months, unfortunately, we cannot have any comparable period here. That kind of buoyancy, we are not seeing there.

There is a pent-up [ server ], which we saw last year that [ server ] is not there.

Okay. Sure, sir. Sir, and in terms of going forward, so let's say, Q4 or even FY '23, how do we see it, it's very difficult to assess the exact demand, but how do you see the demand outlook per se? Will it be better than Q3? Or we expect improvement in the environment?

The Q3 is our best season in the year. As you know, we are in a seasonal business. Q4 is not in terms of offtake that high as Q3. That is a typical thing that we have seen. So we have to only discuss Y-on-Y for that particular quarter. The way I am seeing it is that the volume demand is stable vis-a-vis last year Q4. The way I'm also seeing it is there will be a small impact because of the Omicron and the number of people who have fallen sick all over the place. But having said that, I'm hoping that in the next 10, 15 days, we are likely to see all of that abate. We are still confident that we can kind of do a similar number like last year in Q4 if things don't deteriorate anymore.

And last question from my side. If you can indicate the segment-wise price hikes, cooker, cookware and appliances. Y-o-Y price hikes?

If you are looking at price hikes, I think we took about 5% price hike on cookers in Q2. Saranyan, when did we take the price hike?

Q2.

Yes, in Q2, and we have taken a couple of price hikes in the region of 5%, 7% each in the appliances. And the weighted average, therefore, would be around about 5% to 6% that you are seeing.

[Operator Instructions] The next question is from the line of Sanjaya Satapathy from Ampersand Capital.

And then also the performance of quarter 3 is reasonable compared to the kind of guidance, I mean, I distinctly remember that at quarter 2 call, you had indicated that second half will be kind of flat on a year-on-year basis, the kind of high base it had. So all the comment which we're giving about demand, you probably had already factored that in after you had spoken about the outlook after quarter 2 result. So my question is that considering how much strong grip you have about your outlook, will you still maintain that you can grow and really at a 20% rate, I mean this year as well as next year?

This year, I think -- first of all, thank you for remembering what we said last call, which was, you're right, I mean, we had given an indication of what we said. I mean if you are looking at our earnings growth this year of 20%, I think we should be able to achieve that very easily because you know that our growth in bottom line has been very significant in the area of 40% so far in the first 9 months. So that shouldn't be a problem. In the next year, we haven't had made a plan yet. I think we are waiting for some more time to see how this quarter pans out and then plan for next year. Obviously, we -- our attempt will be to again grow by 20% in the bottom line. But I don't think we can state that right now at this point in time.

Understood. And my second question is that as you have correctly analyzed, I mean for us that to this particular market that you're addressing is becoming far more discerning. So whenever you were coming out with innovation irrespective of macro conditions, you are being to generate sales. So -- and there should not be any better company than you, who really come off with innovation. Of course, it's limited by the range of products that you are in. So what I want to hear is that like how much considering your understanding of the market, how much will depend on market and how much it will be because of you, number one. And number two is that you have done some acquisitions recently and will that kind of certify to a much bigger thing sometime soon?

So the innovation pipeline is something that we are constantly working on. And let me assure you that the number of products that we will continue to launch will be very significant. As we speak, in Q3, we have launched so many new products, and we're launching, I think, many new products in the next couple of months. So that approach of ours to the business and the brand, I think, will continue. The second question that you have asked, sorry, what is -- I missed that. What was the second question, again?

You did an acquisition recently and basically you're trying to [ some or more in ] service the kind of [indiscernible] company.

Yes. So before that, you also asked how much of the market -- will the market impact you at all? I don't think we can remain completely insulated from the market. If the market drops, then it will affect us. But I believe that the kind of target audience that we cater to, we are largely protected if we are able to keep that innovation going. Coming back to the acquisition that we have made, clearly, it is very strategic in nature, small but very strategic. They are into modular kitchen solutions, which many years back, we also had double digit, except that this acquisition is an end-to-end player in modular kitchen, then it gives us a complete control on the modular kitchen business. And you know the real estate market is quite hot and there's a lot of things happening there. So for us, the network that we have seen with Ultrafresh is also offering a good opportunity. And we believe that as we go along, and I think it's still early days, we have just about starting to integrate ourselves. I think the opportunities will be immense, thanks to this acquisition.

Understood. Basically, your quarterly seasonality in terms of growth rate is something probably disconcerting for a market, but it has been a period like that, the whole country has been going through some turbulence. And hopefully, from next year, we will be much more steady and secular growth from you.

I indeed, hope so.

[Operator Instructions] The next question is from the line of Digant Haria from GreenEdge Wealth.

Sir, my question is on the e-commerce channel. If you can help me with our positioning in cooker, cookware and mixer segment, like would we be #1, #2, #3 in each of these segments? And another question, again, on e-commerce is that are the rules of winning in e-commerce any different? Like should we now just treat it as one more channel where we are present. And if we are #1 in cooker, cookware and mixers in the offline market, we'll become #1 in the online market eventually. Is that a right assessment?

The answer to the second part of your question is, yes, that is the right assessment. Eventually, I think the offline brand strength should reflect on the online space as well, unless, of course, we decide that we want to either stay away or we are not able to follow the rules of the game. The rules of the game are a little different, but evolving because it's also a new channel. You know that there have been several regulatory issues itself for the aligned seller, so to speak, "Of both the platforms, both the major platforms," and they are also under flux. There are several new platforms that are coming, which is also creating its own set of evolution. But having said that, I think digital commerce is a thing that will grow over a period of time. And we, as a forward-thinking company, have lot of things planned for our dominance or a very strong play in the digital commerce space, and that's something we are engaged with. The idea is that over a period of time, because of the customer habits changing, we want to make sure that we have a very, very strong presence in the online space.

Right, sir. And then the second line of question is on -- sir, this whole, your customer base would be very large, like not just the top 1 crore affluent families. See that the entire cooker, cookware, appliances this segment, if I look at versus pre-COVID levels, almost all the players have grown anywhere between 15% to 20% in the last 12 months. But if we look at all other companies, okay, may be it a biscuit company or an FMCG company or a 2-wheeler selling company who will have a similar customer set, they are still somewhere at pre-COVID or below pre-COVID level. So is this extra bonanza for this kitchen appliances segment? And next 12 months, we can see tapering off of this bonanza or you think secular growth is still very much there ahead?

No, I think we already stated that there is a little bit of a slowdown in that buoyancy, not slowdown in demand. Having said that, you must understand the relative ticket sizes. Now supposing you are buying a 2-wheeler, it is a major purchase, which you plan. If you are going to buy a pressure cooker, it probably doesn't matter to you in your overall scheme of things on your monthly income. So it is also the relative ticket sizes, if you need another pressure cooker, you're not going to think about it so much in today's day and age where credit cards are available and all of that. So therefore, we are not hampered so much by inflationary problems as much as the others. If you're looking at an FMCG, they're into several different kind of problems or factor. I wouldn't like to comment on that. But I think over a period of time, if our innovation pipeline continues, we will be in a position to continuously grow as we have been doing.

The next question is from the line of Bhavin Vithlani from SBI Mutual Fund.

Congratulations for great set of numbers. This April onwards, there was an implementation of ISI for cookers. Do you see that it has any positive implications for the organized players? And if you could also help us understand, are the agencies implementing it by visiting the production facilities or marketplace?

Well, I can tell you that doing -- making BIS ISI mandatory on pressure cookers is something that we welcome. It will standardize the category. And what it has also done is that BIS is also now becoming a little progressive in adding to the standards and we are very happy with the way they we are doing it. They are implementing this. They are short-staffed, they were short-staffed and with all the COVID and all that, there was a lot of issue, but I think that's all behind us now. We are all settled down. And it also helps us work on a good -- we were always like that. But I think -- in terms of category, we would like the customer to be always safe and the ISI is very good for the category.

Sir, have you seen the -- because what we see in the marketplace and maybe the consumer may not be aware that you may be using a proper grade of stainless steel but the unorganized may not and consequently the difference. So have you seen the difference between yours and unorganized or local brands narrow because of proper implementation of usage of proper material?

So the unorganized players in the last 2, 3 years have been losing a bit of share to the brands, not just to us but generally to brands, for a variety of reasons. You know what those variety of reasons are. There's a GST first. They were not complying earlier. They are now compliant with the tax regime and then the COVID hit, the supply chain affected them more than they affected us. Several such things and distribution and online and all of those. So it's not ISI that has come in the way. The ISI is only one more factor. They have also struggled to come to terms with the ISI thing, which I think even they are behind -- behind them also, I don't think there is any issue for anyone to get an ISI mark if you can approach the BIS and get a factory inspection done. And if you are compliant, they will give it to you.

Second is, we have a 670 exclusive stores. Would it be possible to help us what is the total share in the revenue? And maybe what was the total million square feet that we would be having in the exclusive stores?

So presently, the exclusive stores contribute to about between 11% and 13%, depending on which quarter you're talking about to our total revenues. These 670 stores on an average have a floor area of between 500 and 600 square feet. So you're really talking about, what, 30,000 square feet. 3 lakhs square feet, sorry. That's about it.

Okay, fine. In the cooker, in the past calls, you have indicated there was a shift to stainless steel, what would be the mix of SS, aluminum and anodized in the cooker, and are you seeing any mix in the -- change in the mix?

Well, the trend is certainly for a brand like ours to go towards stainless steel and anodized. And there was a time when stainless steel and anodized put together they're not more than 15%, 20% of total sales. Today, that's about 40% of our total sales.

Okay. And is this similar for cookware as well?

Cookware is still -- nonstick is our mainstay. We are at about 85% nonstick -- aluminum nonstick. As you know, last quarter, we did launch stainless steel cookware with nonstick coatings. That's a new segment, and we are hoping that we can create new opportunities for us as we go along. Our anodized is only about 10%, 12% of total sales at this point in time in cookware.

Sure. I understand. And in terms of the first question that was asked in terms of the gross margins, where the TTK seems to be an only exception reporting an expansion versus others have reported drop between 2 to 5 percentage points. Do you believe that we have a room to maybe cut back and grow market share or we would be maintaining our price levels -- at these margins?

See, the gross margins, as I said, they're not expanded by too much. Yes, they have expanded and a player in a market where most of our peer groups have actually shown a shrinkage. Having said that, I think it is a combination of the price increases we have taken, a combination of a strategic module mix and the channel mix that we have gone after. And after that, overall, how do we run our marketing and our innovation pipeline? We, as a company, have always believed in that rather than cutting price and going after market share. As I said in the beginning, as long as I was able to pass on my cost increases and maintain my market share in such difficult times, I was quite happy with what we do.

Just last question from my side. Appliances as a portfolio has seen much slower growth versus cooker and cookware at 2%. Any particular category where we have seen flatness in the growth within the appliances portfolio? And if you could just give us an outlook, because this is a category where we have been expecting a much faster growth vis-a-vis the cooker and cookware?

No, if you look at it at the 9 months, you will get a clearer picture. I don't think we should look at it just on quarter. So if you look at it on the 9 months picture, our appliances growth is quite significant in almost all the major categories. I mean, if you look at gas stoves, if you look at induction cooktops, if you look at kitchen hoods, OTBs, wet grinders in all of these places, we are looking at very substantial growth. The quarter as such because of the vagaries of the quarter itself is looking like. Otherwise, we've done very well even in the appliance space.

We'll move on to the next question that is from the line of Ekta Sanghvi from Vallum Capital.

Most of my questions have been answered. But sir, so the sales mix has -- for appliances has reduced marginally this quarter. So is the current sales mix sustainable? Or is -- like would it change in the next few quarters?

Well, I think -- as I keep saying this, don't judge everything from 1 quarter. Look at it from a longer period of time, and I think the longer period of time has very clear trend regularly. We are looking at market shares for those particular categories in which we are there. And individual strategies are being applied for all the core categories that we are going after, which are gas stoves, mixer grinders, induction cooktops, kettles, kitchen hoods and wet grinders. And our product strategy, our marketing strategy is all after that. So I think that the present growth that we have seen in the 9 months, relatively speaking, I think will happen even going forward in the same proportion. I'm not saying in the same percentages. We will see so much variation in the overall product portfolio.

Okay. All right. And -- which category out of the 3 would - we having the highest margin, sir?

Out of [ 3 ] which...

Out of cookers, appliances and cookware?

Well, it will be cookers and cookware.

Okay. And my next question is, sir, what will be the overall contribution of rural to the revenue?

Rural to the revenue is still very small, as you know, I mean, we are looking at -- 1 second let me see. Sorry, I don't have it immediately, but for the 9 months, we're looking at, what, 5% in rural.

The next question is from the line of Mithun Aswath from Kivah Advisors.

Just a couple of questions. One was, I just wanted to understand your CapEx plans for the next year. And my second question was more in terms of do you see a large opportunity in any [ agencies ] like tableware as well, which is a segment which seems to be growing quite quickly, but where you're not present. So just wanted to understand areas in the kitchen, where maybe you're not present right now that you are looking at, are there any opportunities -- M&A opportunities there that you would consider as well?

So first, the CapEx question, CapEx is likely to be between INR 50 crores and INR 100 crores over the next couple of years, depending on how fast we can get projects off the ground. In terms of the second question, you know we had dabbled with tableware as a distributed arrangement in the past with World Kitchen. And I don't think we enjoyed that business too much. And I don't think we have the core competencies to keep pace with the design attributes of that business. So as of now, we are not looking at the table with crockery things like that. We have brought enough in the kitchen itself within the kitchen, in the appliance space and in the cookware and cooker space, which we are going after. And that will be our strategy going forward.

[Operator Instructions] The next question is from the line of Nirav Vasa from Anand Rathi.

So my first question is like for 9 months FY '22, we have reported a very strong growth of around 27%. Would it be possible for you to dissect this growth in terms of value and volume? Approximate number would be helpful.

So the volume growths are in the double digits, in the low teens. And then the rest have come because of the model mix and the channel mix.

So you can say the rest of around 15% to 18% is because of the price hikes is...

Around 12% to 15% is because of the price hike, model mix and channel mix.

Sir, the other question is like, sir, we -- as you just informed that the rural is just 5% of our revenues. So what steps are we undertaking for our range and reach expansion? And are there any particular areas in the country which -- where our presence needs to be significantly augmented?

So let me first clarify, when I say rural is 5% of our sales, which is what we can directly attribute as the rural sales. And that is through these MFIs largely and nothing else. Whether our sales -- how much of our sales is happening from the Tier 4 cities where we have distribution going into rural is something we can't track because that is [ non-treasury ] sale that we track. And we don't believe that, that is insignificant. It could be quite significant from the Tier 3, Tier 4 towns. And unfortunately, we are not able to track that. In terms of our endeavor going forward, we are going through a very large market research exercise at this point in time to understand the kind of distribution that is there in this Tier 4, Tier 3s, Tier 5 towns and see how we can then actually expand our reach to service these towns in a bigger way. So that rural demand is serviced. See, as the infra push is happening, travel no longer is a problem from rural areas to these towns. And we are looking at outside the MFI channel, how we can set up a channel, which is robust and it can service those customers.

And sir, like government had given a significant push towards gas stoves via UJALA scheme. So do you think that can be basic lever based on which the demand for other kitchen categories can gradually increase and where we can monetize that really this time?

Absolutely, you're absolutely right. The UJALA scheme and the penetration of LPG into so many kinds -- these kind of households, they'll open the door for other appliances in those kitchens. And that is why we are doing what I just said to you.

Right. And sir, now coming to the premiumization piece of our business. So we were working towards the premiumization and getting into inbuilt appliances. And the -- as far as I recall from my last notes, that premiumization part was -- had a little bit slowdown because of the COVID piece, especially the inbuilt appliances. So any incremental updates? And do you see synergies being forced between your modular kitchen and your inbuilt appliances business?

So glad you brought that up, we did have that plan, and we still do have ambition in that area. But remember that during this period, we just did not only have COVID, but apart from COVID, we took the unilateral decision of moving the supply chain from China to India on our existing appliances, which we were importing. So that has kept us very, very occupied. Remember that the categories that we were importing, we not only have to move those [ bows and ties ] here, we've also got to launch new products in those categories. So this now gone into a back burner, unfortunately. And we believe that now we also have the time and space to once we integrate Ultrafresh to see what is the size of that opportunity because remember Ultrafresh has got 85 stores already. And therefore, that could offer us a ready-made channel as we go along. So as and when we have these products developed after we kind of stabilized on the supply chain of the existing category, we will go there. We still believe that there is a lot of potential in those areas of premiumization of building a plan.

Sir, just to dwell on this piece a little bit. Like as I understand this inbuilt appliances market is mainly being created by a lot of this foreign brands like Miele, Gaggenau, Liebe et cetera. And these are the brands which have a very, very strong customer pull. So how do we intend to get with that kind of a customer pull? And what can be the pricing differentiation or maybe pricing differentiation in this -- inbuilt appliance piece?

So here, I don't believe pricing alone is going to drive those kind of customers at that level. It has to be a product, it has to be an overall offering. And I don't think we are going to go into this on the basis of price. It has to be on the basis of the value that we offer those customers. It's difficult to define a strategy today on the periphery. Only once we get our feet wet, we will be able to say more on this.

[Operator Instructions] The next question is from the line of Achal from JM Financial.

Sorry, if I would be repeating the questions, I got disconnected in between. Can you help us in terms of the price hike we have taken in the third quarter? And if there is anything we have announced or planning to take in the fourth quarter, sir?

So we don't -- we have not announced anything in the fourth quarter. The price increases that we've taken are largely taken in the Q2 and the beginning of Q3 and those are in the region of 5% to 7% in pressure cookers and cookware and in the region of 7% to 8%, 10% in the appliances space.

This is each quarter or cumulative 7% to 8% year-over-year?

Cumulative.

Cumulative, both, okay. Understood. But now, is it fair to say that we have covered the cost inflation? Or is there any still room or is there a still impact of cost inflation, which are yet to be covered?

You can see from our COGS percentages, we have largely passed on the pricing cost increases. Having said that, cost increases continue. We are keeping a close watch on it. I believe that there is no need for us to take any price increases immediately as we speak. But we have to watch because there is nothing that is long-term as a trend that we are still seeing.

Understood. Understood. And one more question I had is with respect to the new product categories, A, if you can update on the cleaning solutions and any other category, which we plan to kind of launch, any thoughts on the same?

So we didn't have a very good 9 months for cleaning solutions because we had a very different base on the cleaning training solutions and certain specific products that were significant in value. These 2 categories were vacuum cleaners and fruit and vegetable cleaners. Unfortunately, the base that was there the previous year on these 2 categories was substantial, thanks to the COVID fear and what that did, and the lockdown. So therefore on that base, we have not been able to kind of grow. Having said that, we are now looking at how we can expand distribution further. The COVID has not been very kind on expansion of distribution, unfortunately. And we are hoping that from here on, we will be able to have a very strong FMCG supermarket. Kirana store distribution that we are working on for the cleaning products because that is where we need the products to be available. And that's what we are seeing at this point in time.

And would that require further investment in this area, sir or with the existing resource we will...

Not really, nothing significant, except that there are that many feet on street that will have to be put so that we can serve the final solution.

Understood. Understood. And just last question, if I may. We see that some of the peers, who have the offering on who focus more on the value for money segment, have been reporting very strong numbers. Now, we have our own offerings with another sub-brand, I wanted to understand the status of that as to what kind of run rate we are locking? How do you see that potential of that segment?

See so far, we have not been handling that brand as a growth driver. That has been a defense mechanism that we have used. We've also joshed about stabilized on our supply chain. So in the absence of an abundance and supply, we would have a supply for Prestige rather than the cheaper brand. That's been our approach so far. Having said that, we now have a national footprint of that brand. We have, I think, as we speak about 60-plus distributors already on that brand, we've got feet on street for that brand, and we are looking at how we can create its own personality and not just a 1 for 1 cheaper product. So you will see some very interesting activity on that brand. But we are not looking at that to cannibalize existing Prestige products to gain market share for TTK Prestige. We will make sure that Prestige continues to grow, and we see if we can get some share at that price point from the other brand.

And just last question, bookkeeping question, sir, if you can help us with what is the capacity we have for cooker, cookware each at this point in time?

So see, these are influx kind of situation. Let me tell you that we are utilizing about 80%, 85% of our pressure cooker capacity and we are utilizing about 70% of our cookware capacity, since we have just started a new line. We are still expanding this capacity going forward because, obviously, we are looking at growth for the coming years.

The next question is from the line of Bhavin Vithlani from SBI Mutual Fund.

Could you help us understand mixer grinder as a category. So your presentation highlights 4 new SKUs that you have launched, but given the brand failures, our revenues seem to be much smaller than -- our market share seems to be much smaller than what we could achieve. So in your view, what is it that the corrective action that you need to take to get to the market-leading position?

See look, the grinding appliances and especially motorized appliances, and not an easy space, number one. Number two, we are not marginal players even today. We are currently between #3 and #4 depending on the geography that you are looking at TTK Prestige for. Third, we are continuously launching products, but let me tell you, it's extremely competitive industry and all our peer group also have launched several products. So it is evolving very fast. And what seems to be happening there also is that in mixer grinders, the volume of the mixer grinders are growing faster than the entry level mixer grinders. And that has been what we are also doing. So it's a fast evolving product wins. There are experts in this business. We are not insignificant in market share, and I think we will continue to grow market share as we go along. We've launched, if I'm right more than 12 new models just this financial year. And you will find that in the next few months, we will have another 3, 4 models coming up.

Sure. And what could be your market share in this category according to you? And are we lacking on the bottom end of the market or on the top end of the market?

Actually, we are the only in the middle end. We are lacking in both the top and the bottom. And our market share from the last report that we got was between 6% and 7%. And the leader's market share was between 13% and 14%, just to give you a relative perspective on that.

Understand. And just a last follow-up on this. So the 12 new launches and the 4 new that you are expecting in the current quarter, would that kind of bridge the product gap as you highlighted? You are strong in the middle and not in the entry and the premium?

Initially yes, but this is not a static market. It's very dynamic in nature. So we can only answer after we've got those 4 models in, again, whether we have to launch another one. But we are actually currently working on some breakthrough concepts. That could be a very different ballgame.

Sure, so something like the Svachh that you launched on the cooker side?

Yes. We are looking at a breakthrough, not 1 more feature, 1 more benefit, 1 more base or a price or this. We're looking at something that is likely breakthrough, different.

The next question is from the line of Charanjit Singh from DSP Mutual Fund.

Sir, just one question on the different categories. If you can just highlight what would be the share of regional brands or smaller companies in these categories, be it in cooker, cookware. And you had earlier talked about how some of these regional brands were struggling, and they had seen reduction in the share, and is it the case right now also, are you seeing them coming back? That's my first question.

So I didn't say regional brands, I said unorganized players. And these are unorganized players which are main that are losing share. So for example, in pressure cooker they've lost close to 12% in the last 2 years, from what something like 46%, 47% they've come down to 36%, 37%, 34%, 36%. Similarly, there are other categories where they have lost share. I don't remember offhand the individual pieces of market share, but conceptually, the unorganized players have lost market share. Regional brands have been moving around, if you might say. Someday this brand is strong, someday that brand is strong. It's not been a consistent performance. National brands such as ours and even I can say zonal brands have gained in this -- on the expense of the unorganized players. That's what happened.

Okay. And sir, if we see that TTK has been taking the price hikes to pass on the commodity increase. So one, in terms of the price gap versus the other competitors in different categories, if you can highlight that, how -- what could be the quantum of the price gap? And in terms of further price hikes and what are these -- what we are seeing is also in particular product segment, you might be moving up the price curve, and you might have to vacate certain particular product SKU because the price has increased. So how we are trying to incorporate that and maybe bring in the SKUs at the lower price points? If you can touch upon that in different product categories, be it in cooker, cookware as well as appliances?

See, first of all, let me assure you, that we have not taken price increases unless there has been a necessary cost increase. Our peer group has been a little delay on taking price increases. If you look at the quantum of price increases that they have taken, they have probably taken similar price increases or even higher price increases in some case, but delayed. So what we are seeing here is that their margins have contracted in a particular quarter. And they probably delayed taking the price increase to be fair to them, thinking that okay, the commodities will cool off maybe going forward by the [indiscernible] price increases. But the long and short of this is that we have not become uncompetitive because of the passing on the price increases, we were nearly more timely than the other.

And sir, in terms of the channel mix, I don't know whether you have touched upon that. If you can highlight in terms of the general trade online. What is the share now online? We had seen it has increased significantly for TTK. Are we see it further increasing as the overall mix in the distribution?

No, the channel share -- see, we have made sure that we have not gone after any one particular channel. That is something that we have done very, very consciously. So -- and we have not -- like in your previous question you asked, we have not played the price game as, we believe it was not healthy for the brand in the long run or it was unhealthy from a channel conflict perspective. So therefore, what has happened is in this financial year, our offline channels have grown at a half... [Technical Difficulty]

Hello. Sorry to interrupt. Sir, we are not able to hear you. Mr. Kalro, we are not able to hear you. Ladies and gentlemen, we seem to have lost the audio from the management's lines, please stay connected while we try regain the audio.

Can you hear me?

Yes, sir. We able to hear you now. Please proceed.

Yes. I finished answering, my thought. Were you able to hear me when I finished?

Sir, you said that our offline channels has grown faster than online, that was the...

Yes, that is correct. And I also said at the same point in time that our growth last year in the online was very high. So the base was very...

Okay. So from a mix perspective, will you able to just share in terms of what percentage is coming from now online?

Our online today at about 18% or thereabout of the total sale.

Ladies and gentlemen, that is the last question. I now hand the conference over to the management for the closing comments.

So, thank you. That was an engaging session indeed. So we had a very good quarter from our perspective given the kind of situation we were in. And we hope to continue the growth trajectory and the margins that we have gained. And hopefully, the third wave will abate and we will get back to normalcy and we will have a little more predictable future as we go along. So thank you all for coming, and all the very best. Stay safe.

Thank you. Ladies and gentlemen, on behalf of Ambit Capital Private Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.