IGI Logo

About the Company

Incorporated in 1999, Stove Kraft is a kitchen solutions and an emerging home solutions brand. They are the leading brands for kitchen appliances in India, and are one of the dominant players for pressure cookers and amongst the market leaders in the sale of free standing hobs and cooktops.

They are engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under brands like Pigeon and Gilma, and also it proposes to commence manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions.

Their kitchen solutions comprise of cookware and cooking appliances across brands, and its home solutions comprise of various household utilities, including consumer lighting, this enables them to not only be a one stop shop for kitchen and home solutions, but also offer products at different pricing points to meet diverse customer requirements.

The company has two manufacturing facility one at Bengaluru, Karnataka and other at Baddi, Himachal Pradesh. As on September 30, 2020, they have 651 distributors in 27 states and five union territories of India and 12 distributors for products that are exported.

Objects of the Issue

* Repayment/pre-payment, in full or part, of certain borrowings availed by the company

* General corporate purposes.

Strengths/Risks

Sector to drive growth: The Indian Consumer appliance market demand is driven primarily by rising disposable incomes in Indian households, and easy access to credit which induces a growing purchasing power. Increasing electrification of rural areas, along with rising influence of social media and popularity of online sales are also likely to aid growth in demand. Apart from this, favorable government policy will aid growth for the sector.

Scaling up of branding, promotional and digital activities: Stove Kraft has wide spread presence and scale of operations which allows them to increasingly focus on branding and promotional activities to enhance their visibility in the cookware and kitchen appliances industry. Also they have well established consumer brands which enjoy a high brand recall. Going ahead, it would continue to focus on brand awareness, retail branding and as well increase digital presence.

Expand portfolio in the existing product categories: The company has strong product portfolio under the brand Pigeon. Further it is divided under four categories - cookware, cooktops, small kitchen appliances and home utilities aiding different functions and utilities in the kitchen and home. Going ahead they plan to utilise their research and development capabilities to develop new products to cater the requirements of a large customer base and target new customers

Key Risk:

* The company has negative reserves.

* The debt on books is high

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer