Stove Kraft Ltd

Stove Kraft

About the Company:

Stove Kraft Ltd is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under our Pigeon and Gilma brands.

Company also proposes to commence manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively.

Company is emerging as one of 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.

Company’s kitchen solutions comprise of cookware and cooking appliances, and home solutions comprise various household utilities, including consumer lighting.


Company’s Flagship Brands.



Pigeon Brand:

During the six month periods ended September 30, 2020, Pigeon branded products contributed 76.90% to overall sales, respectively and were amongst the leading brands in the market for certain products such as free standing hobs, cooktops, non-stick cookware, LPG gas stoves and induction cooktops.



Gilma Brand:

Gilma portfolio comprises chimneys, hobs and cooktops across price ranges and designs.

Gilma brand products are sold through exclusively branded outlets owned and operated by franchisees. There are 65 such stores spread across four states and 28 cities and towns, with a presence in the urban market in south India. Gilma stores are designed to be ‘experience’ stores.

During the six month periods ended September 30, 2020, Gilma branded products contributed 5.43% to overall sales.



Under BLACK + DECKER Brand company sells wide range of products such as blenders and juicers, breakfast appliances, small cooking appliances and small domestic  appliances in India under the BLACK + DECKER brand, up to December 31, 2027. Company is yet to commence manufacturing under the BLACK + DECKER brand.

During the six month periods ended September 30, 2020, BLACK + DECKER products contributed 1.50% to overall sales.


Pigeon branded LED products:

In 2016, Company diversified the Pigeon brand by launching LED products under it and in 2019, we commenced manufacturing LED products at Bengaluru Facility.


Trageting both Value, Semi Premium and Premium Customers:

Company manufactures and retail a wide and diverse range of affordable (value segment), quality products under Pigeon brand, including, inter alia, cookware, cooking appliances and household utilities (including consumer lighting).

Company currently offers a wide range of products such as chimney, hobs and cooktops under the Gilma brand, which is targeted at the semi-premium segment.

Company has also entered the premium segment in 2016 pursuant to our exclusive BLACK + DECKER Brand Licensing Agreement with Stanley Black & Decker, Inc.



Company’s Own Manufacturing:

As of September 30, 2020, Company manufactures 79.75% of our Pigeon and Gilma branded products (in terms of number of units) at our well-equipped and backward integrated manufacturing facilities at Bengaluru (Karnataka) and Baddi (Himachal Pradesh), which enables us to control and monitor the quality and costs.

Our Bengaluru Facility is spread over approximately 46 acres and five guntas, out of which 30 acres and one gunta is available for future expansion.

As of September 30, 2020, Bengaluru Facility had an installed annual production capacity of 38.40 million units, with the capability to manufacture products in the pressure cookers, non-stick cookware, LPG stoves, mixer grinders, LED bulbs, iron and induction cooktops categories.


Company’s Distributors:

Company has 651 distributors in 27 states and five union territories of India and 12 distributors for our products that are exported as of September 30, 2020.

Company’s distributors are connected with a dealer network comprising of over 45,475 retail outlets.

Further, we have also entered into agreements with e-commerce platforms such as Flipkart India Private Ltd for the sale of products on their portals. Outside of India, we export our products which are manufactured by us to retail chains in the United States of America and Mexico.



Overview of the Products currently offered by Stove Kraft under the Pigeon brand:




Major Players in the Kitchen Appliances Industry:

Major players currently operating in the Indian kitchen appliances market include TTK Prestige, Stove Kraft Limited, Gandhimathi Appliances Ltd, Hawkins, Bajaj Electricals, Preethi Industries Ltd., Glen, Faber, Kaff Appliances, Inalsa, IFB, Panasonic, and Phillips, etc.


Market share of Market Leader in Key Product categories in Indian Kitchen Appliance market: 


Brand Share (by Volume) 2020: Pressure Cookers: 

Note: The retail sales ‘Value’ of the pressure cooker market in India stands at INR 17.7 billion in 2020, growing at a healthy CAGR of about 9% through 2015-2020. Stove  Kraft Ltd., TTK Prestige and Hawkins have a dominant position in the market for pressure cookers.



Brand Share (by Volume) 2020: Non-Stick Cookware: 

In 2020, Stove Kraft Ltd. sold about 0.77 million non-stick cookware. It sells ‘Non-stick cookware’ mainly through its ‘Pigeon’ brand route. In terms of Retail Sales value, Stove Kraft Ltd. registered total sales of INR 776 million for its ‘Non-Stick Cookware’ category through brand Pigeon.






Objectives of the Issue:

Fresh Issue: (Rs.95 cr )

  • Repayment/pre-payment, in full or part, of certain borrowings availed the Company.
  • General corporate purposes.


Offer For Sale: (Rs.318 cr)

  • Each of the Selling Shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.


Management Team:

  1. Mr. Rajendra Gandhi (Designation: Managing Director)
  2. Ms. Neha Gandhi (Designation: Executive Director)


Positives for the Company:

One stop shop for Kitchen & Home solutions:

Since inception in the year 1999, company has grown from a single brand small LPG stove manufacturing company to become one of India’s leading manufacturers of kitchen appliances.

Stove Kraft’s kitchen solutions comprise of cookware and cooking appliances across brands, and their home solutions comprise various household utilities, including consumer lighting, which not only enables them to be a one stop shop for kitchen and home solutions, but also offer products at different pricing points.


Focus on LED Consumer Lighting Business:

Owing to the increasing government initiatives to boost LED adoption and growing awareness regarding lower power consumption of LED lighting products, the LED lighting market is expected to grow significantly in India.

Stove Kraft Ltd seeks to capture this growing demand for LED lighting products with our range of consumer lighting products including bulbs, battens, downlight and panels.

In Fiscal 2016, Company forayed into a new line of business, i.e. LED products and within in a span of 36 months, achieved a revenue of Rs.49.9 crores.


Make in India Initiative:

To put more thrust on ‘Make in India’ drive, the government has increased the basic custom duty on some key electronic items, which includes LED lamps, one of the product segments catered to essentially by Kitchen appliances manufacturing companies like Stove Kraft Limited.


Pradhan Mantri Ujjwala Yojana (PMUY):

Under this scheme the Indian Government initially made a target to provide 5 Crore LPG connections to under privileged women.

Cooktop gas oven manufacturers, like Stove Kraft Limited, perceive this increase in LPG users as an opportunity to grow their market size since increase in LPG users will directly garner more number of gas stove/cooktop users in the country.


Stove Kraft has Partnered with Gas Companies:

Company has partnered with oil and gas companies such as Indian Oil, HPCL and BPCL, as a co-branding initiative and provides cooktops with new gas connection for any of these oil and Gas companies.

‘Pradhan Mantri Ujjwala Yojana’, has helped Stove Kraft Limited. to increase volume sales and also spread its reach into the country’s interiors.


Good Growth Achieved Since Inception:

Since inception in the year 1999, Company has grown from a single brand small LPG stove manufacturing company to become one of India’s leading manufacturers of kitchen appliances and has presence in 27 states and five Union Territories of India and 14 countries across the world.


Various Brands Catering to all Segments:

Company’s brand portfolio, comprising of the Pigeon, Gilma and BLACK + DECKER brands caters to the value, semi-premium and premium customer segments in the kitchen solutions industry, and allows our customers to engage with the brand specifically designed for their budget and lifestyle.


Widespread, well connected Distribution Network:

Company has 651 distributors in 27 states and five union territories of India. The C&F agents and distributors are, in turn, connected with a dealer network comprising of over 45,475 retail outlets, which are driven through a sales force of 566 personnel.


Products Exported to Foreign Countries:

Internationally, Company’s products are exported to 14 countries including UAE, Qatar, Bahrain, Kuwait, Tanzania, Uganda, Nepal, Sri Lanka, Bangladesh, Oman, Ghana, United States of America, Mexico and Saudi Arabia.

Further, company supplies the products to retail chains in the United States of America and Mexico and also undertake original equipment manufacturing for retail chains in the United States of America under their brands.

During the six month period ended September 30, 2020 and in Fiscal 2020, the export sales contributed to 17.90% and 7.64%, respectively, of our revenue from operations.


Financials of the Company: (Consolidated)

(in Crores) FY 16 FY 17 FY 18 FY 19 FY 20 30th Sept 2020
Revenue 524.79 517.95 534.58 642.6 672.9 329.5
Net Profit (-43.9) (-19.24) (-12.76) 0.90 2.9 30.08



Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Stove Kraft Ltd 10 1.05 366 2.51% 41.84
TTK Prestige 10 133.13 44.93 14.12% 942.56
Hawkins Cookers 10 137.09 42.25 51.91% 264.11
Butterfly Gandhimathi Appliances 10 1.83 284.29 1.70% 107.32



IPO Details:

Details Info
Issue Opens on 25th January 2021
Issue Closes on:. 28th January 2021
Issue Price Rs.384 – 385
Face Value 38 Shares
Minimum Investment Rs.14,630
Issue Constitutes 32.92%
Issue Size Rs.412 cr ($55 million)
Market Cap Rs.1253 cr ($169 million)
Listing at NSE & BSE
Equity Shares Offered (Fresh) 24,67,532
Equity Shares Offered (OFS) 82,50,000
Total Equity Shares Offered (Fresh + OFS) 1,07,17,532
Equity Shares Prior to the Issue 3,00,80,631
Equity Shares after the Issue 3,25,48,163

Also Read : List of Upcoming IPO’s in India.

Important Dates:

Finalization of Basis of Allotment 2nd February 2021
Initiation of Refunds 3rd February 2021
Credit of Equity Shares: 4th February 2021
Listing Date: 5th February 2021


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 05:00 PM) Shares Offered Day-1 Day-2 Day-3
QIB 32,15,260 0.00 0.08 8.02
NII 16,07,629 0.05 1.85 32.72
Retail 10,71,753 5.37 13.08 26.04
Employee ——- —- —— —-
TOTAL 58,94,642 0.99 2.93 18.03



IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
1.05 366 1.46% 51.89


Check IPO Allotment Status:

KfinTech Website: http://kfintech/IPO/Allotment_Status

BSE IPO Website:


Company Contact Info:
Stove Kraft Limited
81/1, Medamarana Halli Village
Harohalli Hobli, Kanakapura Taluk
Ramanagar District 562 112
Karnataka, India
Tel: +91 80 2801 6222


IPO Registrar Info:
KFin Technologies Private Limited
Selenium, Tower B
Plot No. 31-32, Financial District
Nanakramguda, Srilingampally
Hyderabad Rengareddi 500 032
Telangana, India
Tel: +91 40 6716 2222