Stove Kraft announced its plan to enter branded modular kitchen segment with its factory made Ready to Assemble (RTA) kitchen. Stove Kraft currently enjoys a pan-India presence in the cookware and kitchen appliances segment through its flagship brand Pigeon.
The company said that the addressable market for branded modular kitchen industry in India is currently estimated to be around Rs 12,000 crore and expected to grow at a CAGR of 20%. However, the penetration is predominately limited to large cities and a large portion of the segment is still unorganized/unbranded comprising of local carpenters/contractors/builders, small retail operators and architects, it added.
Stove Kraft said that its RTA kitchen will be a standard offering catering to majority of the kitchen shapes, with dedicated modules of wall cabinets, floor cabinets and tall units along with multiple colour options, both in contemporary & classic. A Pigeon RTA kitchen with plywood kitchen cabinets, granite top, kitchen sink, chimney, cooktop & accessories shall be available to the customer from April 2022 at an all delivered starting price of Rs 69,990.
In a separate announcement, Stove Kraft said that it will foray into the business of manufacturing low voltage switchgear solutions like electrical switches, sockets, distribution boxes, switch boards, M.C.B, bulb holders, etc. The firm will acquire the business and IPR rights from SKAVA Electric on a slump sale basis for total consideration of Rs 4 crore in cash which is subject to due diligence and regulatory approvals.
As part of this acquisition, founder of SKAVA will be appointed as a business head of this segment and will be associated with Stove Kraft for a period of at-least 4 years to ensure smooth transition as well as support future business growth. In addition, Stove Kraft will also absorb the design, operation & manufacturing team from SKAVA Electric to kickstart the production. Further, Stove Kraft also plans to incur additional capex of Rs 5 crore over next 3-4 years on moulds and machines to increase the production capacity.
Stove Kraft is a kitchen solutions and an emerging home solutions brand. It is is also engaged in the manufacturing and retail of a wide and diverse suite of home and kitchen solutions under the Pigeon and Gilma brands and propose to commence manufacturing of home and kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium home and kitchen solutions, respectively.
Source - CapitalMarkets
One year performance of the scrip is given below
Buy for long term as the prospects of this company are very good with a strong presence Pan India in kitchenware segment.
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