Kitchen appliances firm TTK Prestige on Tuesday said its UK subsidiary will sell 51 per cent stake in Horwood Life Ltd and exit the joint venture. Horwood Homewares Ltd, UK (HHL) has entered into firm agreements to end the joint venture — Horwood Life Limited — with Eco soul life by divesting its 51 per cent stake, TTK Prestige said in a regulatory filing.
“This decision has been taken by HHL in the light of long-term uncertainty over supply-chain constraints. While there will be one-time impairment to the extent of GBP 869,000 (approx Rs 85.65 lakh) in the books of HHL on account of this exit, HHL will be saving significant recurring overheads from second half of FY21, thus improving its operating profits,” the filing said.
TTK Prestige said HHL is already in the process of building alternate supply chains, including India sourcing, for part of the products that were originally proposed to be sourced from the joint venture.
Further, TTK Prestige said that given the size of the subsidiary, the impact due to this exit will not be material with respect to sales revenue or to total assets/ liabilities of the subsidiary HHL and to that of the company’s consolidated financials.
Source: Economic Times