Steady demand. Stove Kraft expects over 20% growth in sales backed by steady demand from Tier II, III markets

Stove Kraft Ltd, the makers of cookware, kitchen and home appliances, is expecting over 20 per cent growth in sales backed by a steady demand coming in both from new and replacement markets primarily in Tier II and Tier III towns. The company, which had posted a turnover of ₹1136 crore in FY22, markets its cooking appliances under Black+Decker, Pigeon, and Gilma brands.   

According to Rajendra Gandhi, Managing Director, Stove Kraft, the industry has been growing at a CAGR of around 8-10 per cent. The company has been witnessing a higher rate of growth as it addresses a larger and wider consumer base in the mass or affordable segments, particularly from Tier II, Tier III, and Tier IV towns and cities.

“There is a lot of shift happening from unorganised to organised segment, particularly in the cookware and kitchen appliances category and we are at the entry-level of that shift. We are witnessing a CAGR of over 20 per cent. We are looking at a good double digit growth in FY23,” Gandhi told businessline.

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Nearly 50 per cent of the total consumption of its products comes through the replacement market as consumers look to upgrade themselves. The company’s manufacturing facilities, located in Bengaluru (Karnataka) and Baddi (Himachal Pradesh), have a high level of backward integration and the manufacturing process is not dependent on third-party suppliers and OEMs.

Expanding footprint

The company, which has close to 50 exclusive retail outlets primarily in South India, is looking to add 8-10 stores every month moving forward to expand its footprint.

Its brands straddle across all segments of the market, including value, semi-premium, and premium, thereby enhancing its reach and meeting the varied requirements of consumers. Stove Kraft has been focusing on launching new products and foraying into new segments besides strengthening its distribution network and driving enhanced backward integration to reduce its dependence on third party suppliers.

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It has over 700 distributors, 79,000 retail outlets, and a sales force of over 560 people. The products are available across several channels, including independent third-party retail stores, exclusive brand outlets, retail chains, e-commerce platforms, and brand websites.

“We are looking to open 8-10 stores each month and all these stores will be company-owned and company-operated. We will remain in the southern region for some more time before moving to west, north, and east,” he said.

The company, which exports its products to 12 countries across the globe, expects revenues from international business to grow moving forward. Exports currently account for around 12 per cent of its sales and are expected to go up to 20 per cent moving forward.

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