### **Overview** Stove Kraft Limited (SKL) is a leading Indian manufacturer and retailer of kitchen and home solutions, headquartered in Bengaluru, Karnataka. Founded in 1999 by Mr. Rajendra Gandhi, the company has evolved from a regional LPG stove manufacturer into a national powerhouse with a diversified portfolio of over **1,000 SKUs** across cookware, appliances, and home solutions. The company went public in 2021 with its listing on the BSE and NSE. Operating under a **multi-brand strategy**, Stove Kraft targets consumers across value, semi-premium, and premium segments through its three primary brands: - **Pigeon** – Value and mass-market appeal - **Gilma** – Semi-premium, focused on modular kitchens - **BLACK+DECKER** – Premium segment via exclusive licensing agreement with Stanley Black & Decker With an annual turnover exceeding **₹1,450 crores**, the company maintains a strong pan-India presence across all 28 states and 6 UTs, while exporting to over 10 countries including the USA, UK, UAE, and Mexico. --- ### **Business Model & Strategy** #### **1. Omni-Channel Distribution** Stove Kraft leverages a robust, multi-pronged distribution strategy: - **General Trade (28–40%)** - **E-commerce (32–40%)** – Leading brand on platforms like Amazon, Flipkart; also present on quick commerce (e.g., Instamart, Zepto) - **Modern Retail (11–13%)** - **Direct Retail (Own Stores)** - **Corporate & Institutional Sales** - **Exports** The company has built **dedicated distribution networks** for each brand (Pigeon, Gilma, BLACK+DECKER, Pigeon LED), enhancing operational efficiency and channel-specific engagement. #### **2. Direct-to-Consumer (D2C) Retail Expansion** As of **November 2025**, Stove Kraft operates **300 exclusive retail stores**, including: - 300 **Pigeon-exclusive stores** across **120 cities in 21 states** - 40 **Gilma branded franchisee-operated outlets** These stores are expanding rapidly, with **16 new Pigeon stores added in the latest quarter**. The retail strategy is transitioning from **Company-Owned, Company-Operated (COCO)** to a **Company-Owned, Franchisee-Operated (COFO)** and **Franchisee-Owned, Franchisee-Operated (FOFO)** model to ensure scalable and capital-efficient growth. - **Regional Mix:** 205 stores in South, 67 in North, 26 in West, 3 in East. - **Revenue Concentration:** ~75% of retail revenue from Southern India. - **Future Focus:** Aggressive expansion in **North and West India**, especially in **UP, Bihar, Maharashtra, and Madhya Pradesh**. - **Break-even:** All stores expected to breakeven within **6 months**; underperforming stores are relocated. - **Average Monthly Sales per Store:** **₹3.81 lakhs** (breakeven threshold: ₹2.5 lakhs) Stove Kraft aims to **double its retail footprint to 500 exclusive Pigeon stores by April 2027**, contributing **15–20% of total revenue** within two years. --- ### **Manufacturing & Operational Excellence** Stove Kraft is a fully **backward-integrated manufacturer** with advanced capabilities at its two main facilities: - **Harohalli, Bengaluru, Karnataka** – Integrated 46-acre site; primary hub for cookware, appliances, and lighting. - **Baddi, Himachal Pradesh** – Specializes in inner-lid pressure cookers. Key operational highlights: - **37 manufacturing lines** across two facilities - **ISO 9001:2015 certified**, with in-house R&D of **13+ personnel** - **India’s largest cast iron foundry** for cookware: **2.2 million pieces per annum (scalable to 4.4M)**, commissioned in 2024 - **One of India’s few automated roller coating lines** for non-stick cookware - **Self-owned glass lid and gasket manufacturing**, reducing import dependence - **4 MWp solar power plant** in Bengaluru, meeting ~20% of energy needs; 49% renewable energy usage - **1.8 lakh sq ft new facility under construction in Harohalli** to support global demand Cost-plus pricing model ensures **consistent margins** across domestic channels, while **online pricing is kept 10–15% lower** than competitors to drive volume growth. --- ### **Product Portfolio & Innovation** #### **Core Product Categories** - LPG stoves, water heaters, chimneys, hobs, cooktops, kitchen sinks - Small appliances: Mixer grinders, air fryers, kettles, toasters, vacuum cleaners - Cookware: Pressure cookers, non-stick, titanium anodized, cast iron, ceramic - Personal care: BLDC hair dryers, men’s trimmers - Home & lighting: LED bulbs, battens, emergency lamps, electrical switches (via SKAVA acquisition) #### **Recent Launches (2025)** - **Tesla Electric Kettle**, **Nutri Blender**, **Pure Slow Juicer** - **All-Clad Tri-Ply Pressure Cooker**, **Idiyappam Maker** - **9-in-1 Electric Cleaning Brush**, **BLDC Ceiling Fans** - 5-in-1 **Balancing Gender Roles at Home** campaign under Pigeon #### **Diversification** - **Personal Care**: Entry in FY24–25 via e-commerce; launched BLDC hair dryers and trimmers to target digitally savvy urban consumers. - **Home Solutions**: Pigeon LED, SKAVA electrical switches, modular kitchens (RTA). - **Outdoor Products**: Grills under development for export. #### **Flagship Products** - **Pigeon Airfryer** – First "Made in India" air fryer; received **CSD approval**, enabling sales through military canteens - **Pigeon Imperia** – High-pressure cast iron cookware; Amazon bestseller - **MIO™ Non-Stick Range** – 5-layer Scandia coating (Italian tech); durable, smooth --- ### **Brand Portfolio & Positioning** | **Brand** | **Segment** | **Go-to-Market** | **Key Features** | |------------------|------------------|-----------------------------------------------|------------------| | **Pigeon** | Value (Mass) | General trade, e-commerce, 300 exclusive stores | Co-branded with IOCL, HPCL; fast-growing D2C | | **Gilma** | Semi-Premium | 40+ franchisee-owned exclusive outlets | Modular kitchens; post-sales app; strong South presence | | **BLACK+DECKER** | Premium (Licensed)| Dedicated 17-state network | Exclusive Indian retail rights; trusted global brand | --- ### **Exports & International Growth** Exports account for **11–12% of total sales**, primarily to: - **USA, UK, Mexico, UAE, Southeast Asia** - Key clients: **Walmart, Big Lots, IKEA** **Strategic IKEA Partnership (FY26 Onwards):** - **Set to begin supplying ceramic cookware** (PTFE non-stick alternative) starting FY26 - Drives need for the **new 1.8 lakh sq ft manufacturing facility at Harohalli** - Validates global manufacturing standards - Supplies to over **1,200 global retail outlets** Export operations are **FOB-based**, shielding from tariff volatility (e.g., 25% US duty). Despite temporary pausing of new product exports due to tariff uncertainty, **existing product sales continue**, and one major buyer has committed to **tripling import volume**. Export revenue expected to grow **by ~50% YoY**. --- ### **Financial & Strategic Highlights** - **Revenue (FY25):** ~₹1,450 crores - **Gross Margins:** Improved from **32.5% to 38.5%** over three years - **Cost Control Focus:** Prioritizes affordability and market share over short-term margin maximization - **Capital Expenditure:** Expected to remain below **₹25 crores** (cash), with total outlay under **₹40 crores** - **Manufacturing Output:** Share of manufactured products in revenue increased from **70% pre-IPO to 95%**, with **incremental revenue from these products tripling** --- ### **Retail & Market Performance** - **Store Economics:** - Avg. monthly sales/store: **₹3.81 lakhs** - Repeat purchase rate: ~**18%** - Units per Transaction (UPT): >2 - Avg. Selling Price (ASP) in stores: **₹1,530** (~2x overall average) - **Top Revenue Drivers:** - Pressure cookers, cooktops, chimneys, small appliances (together 49% of revenue) - E-commerce strong across kettles, air fryers, induction cooktops (63% growth YoY) - **Geographic Strength:** - Dominant in **South India** (~75% retail revenue) - Strategic push into North and West --- ### **Strategic Milestones & Partnerships** - **IKEA Supply Agreement (FY24–25):** Strategic global partnership for cookware; reinforces Stove Kraft’s manufacturing capabilities. - **CSD Approval:** Pigeon Airfryer now available in defense canteens across India. - **Franchise Model Rollout:** Low capital entry with ₹17 lakh franchisee deposit (inventory + fit-out); company retains ownership and lease. - **Digital Enablement:** Gilma app for service, e-commerce integration, digital-first campaigns. - **Sustainability Efforts:** 49% renewable energy, closed-loop aluminum recycling, solar power deployment. --- ### **Leadership & Vision** - **Mr. Rajendra Gandhi** – Founder & Managing Director; 21+ years in kitchen appliances - **Ms. Neha Gandhi** – Executive Director; leading marketing & digital strategy **Vision:** To become **India’s leading end-to-end kitchen and home solutions brand**, combining innovation, affordability, and nationwide accessibility. **Long-Term Goal:** Sustain **historical 19% CAGR**, driven by product innovation, retail expansion, and global partnerships.