Stove Kraft Limited has informed the Exchange about Investor Presentation
KX STOVCKRAFT
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August 04, 2022
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To,
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 543260
National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 NSE Symbol: STOVEKRAFT
Dear Sir/Madam,
Sub: Investor Presentation for Q1FY23
As per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)Regulations ,2015, please find enclosed the Investor Presentation for Q1FY23.
Kindly note our Earnings call is Scheduled on August 04, 2022 (Thursday) at 4:00 PM.
Request you to kindly take the same record.
Thanking you, For Stove Kraft Limited
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Elangovan S. Company Secretary
Stove Kraft Limited #81/1 Medamaranahalli Village, Harohalli Hobli, Harohalli Industrial Area, Kanakapura Taluk, Ramanagara District, Bengaluru, India- 562 112 €,+91 80 28016222 |
info@stovekraft.com
+91 80 2801 6209 |
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CIN: L29301KA1999PLCO25387
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STOVE KRAFT LIMITED
NEW-AGE SOLUTIONS FOR THE NEW-AGE HOME
INVESTOR PRESENTATION August 2022
Safe Harbor
This presentation has been prepared by and is the sole responsibility of Stove Kraft Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by
the trailing restrictions.
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subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or
commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No
representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or
opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or
amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes
inaccurate.
Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking
statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”,
“pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to
differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to
the Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The
Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.
2
Q1FY23 Financial Performance
Q1FY23 Performance (Y-o-Y)
Revenue from Operations
Gross Profit
EBITDA^
Profit After Tax (PAT)
Rs. 275.1 crores
Rs. 90.5 crores
Rs. 22.4 crores
Rs. 8.1 crores
28.4%
23. 9%
-0.6%
-40.3%
Margin Profile
No. of Outlets
Revenue Breakup : Q1 FY23
EBITDA Margins^
PAT Margins
8.1%
2.9%
79,225 33,851
45,374
Mar-22
LED
10,568 6,329 4,239
Outlets added in Q1FY23 Pigeon
^ EBITDA is before allowance for expected credit loss; Rs.0.75 crores for Q1 FY23.
89,793
40,180
49,613
24.1%
21.5%
7.5%
23.1%
13.4%
Pressure Cookers
Jun-22
10.4%
LED
Induction Cooktop
Gas Cooktp
Nonstick Cookware
Mixers / Small Appliances / Others
4
Increased Volumes during Q1FY23
Pressure Cooker*
Gas Cooktops
Induction Cooktops
+12.6%
9.0
8.0
+25.9%
1.5
1.2
+51.9%
3.2
2.1
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Non Stick Cookware*
+15.1%
28.5
24.7
LED
+47.7%
24.9
16.8
Small Appliances/Mixers/Others
+16.5%
22.2
19.1
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Units in Lakhs
*Represents quantity sold in single units and not as combos
5
Profit & Loss Statement – Q1FY23
Profit & Loss Statement (Rs. Crs.)
Q1 FY23
Q1 FY22
Revenue from Operations
Cost of Materials Consumed
Purchase of stock-in-trade
Changes in Inventories of Finished Goods and Work in Progress
Gross Profit
GP %
Employee Benefits Expense
Other Expenses
EBITDA
EBITDA %
Other Income
Depreciation and Amortisation Expense
EBIT
Finance Costs
Allowance for Expected Credit Loss
PBT
Total Tax Expense
Profit for the year
PAT %
275.1
169.8
22.8
-8.1
90.5
32.9%
31.5
36.7
22.4
8.1%
-1.5
6.6
14.3
3.0
0.8
10.6
2.5
8.1
214.2
129.2
18.5
-6.9
73.4
34.3%
23.8
27.1
22.5
10.5%
0.4
4.1
18.8
3.0
2.3
13.5
0.0
13.5
2.9%
6.3%
Y-o-Y
28.4%
23.3%
-0.6%
-24.1%
-21.7%
-40.3%
Q4FY22
261.3
149.5
20.1
13.4
78.4
30.0%
24.8
32.5
21.1
8.1%
-2.2
5.2
13.7
1.2
5.5
6.9
-1.74
8.6
3.3%
Q-o-Q
5.3%
15.5%
6.2%
4.6%
53.4%
-6.6%
6
About Stove Kraft Limited
Key Milestones
1999
2001
2003
2008
2010
Incorporated Stove Kraft as a Pvt. Limited
Granted trademark registrations for Gilma
Granted trademark registrations for Pigeon
Investments by SIDBI
Commenced production at Harohalli facility
First Investment by Sequoia
2014
2015
2018
2019
2021
Commenced exports to retailers in the USA
Certificate of registration of design was granted for our product ‘Super cooker’
Achieved sales of 9.1 million units
LED Plant in Bangalore & Inner Lid Cooker Plant in Baddi, HP
IPO with listing on NSE and BSE
8
Diverse range of products across consumer preferences…
• Cookware–Pressure cooker, wonder cast cookware, non-stick cookware, electric
rice cookers and titanium hard anodized cookware
• Cooktops and other kitchen solutions –Hobs, glass cooktops, stainless steel
cooktops, induction cooktops and chimneys
• Small appliances –Mixer grinders,
toasters, sandwich makers, knives, steam irons, juicers, food steamers, air fryers and electric grills
rice cookers, electric kettles,
• Other products –Emergency lamps, water bottles and flasks, aluminum ladders,
cloth dryers, water heaters, dustbins and mops
LPG Stoves
Massage apparatus
Water heaters
Chimney
Hobs
Cooktops
Kitchen sinks
• Small appliances –Food processors, juicers, hand blenders, hand mixers, mini choppers, oven toaster grills, rice toasters, coffee makers, cookers, sandwich makers and kettles
• Other products –Steam irons, dry irons,
water heaters and oil fin radiators
LED bulbs
Battens
Downlights
Multi-brand approach to capture the entire value chain…
Value
Semi - Premium
Premium
• 20+ year old brand • One of the market leaders for certain products such as cookware*
• Launched in 2016 and
manufacturing commenced in 2019
• Offers a modular kitchen experience
• Comprises chimneys, hobs and cooktops across price
ranges and designs
• Sold exclusively though Gilma branded outlets, which are
owned and operated by franchisees
• Gilma specific mobile application for customers to raise post
sales service requests
• Entered into an exclusive brand licensing agreement
with Stanley Black & Decker Inc. in 2016
• Retailer for and provider of post-sales service for
blenders, juicers, breakfast appliances, etc.
• Separate distribution spread across 10 states
*Source: F&S Report
9
State of the Art Manufacturing Facilities with focus on quality
Baddi, Himachal Pradesh
Dedicated in-house R&D facility
Comprising of 13 personnel and tie-ups with foreign companies for
technology enablement
ISO 9001:2015 certified
Bengaluru, Karnataka
Focus on quality is maintained at all stages
Sourcing of raw materials Product development Manufacturing stage
Subject to a rigorous review and monitoring process undertaken at our
Bengaluru Facility
Total ~46 acres with ~30 acres available for future expansion
Dedicated sourcing team and quality assurance team based out of
China
Both facilities have a high level of backward integration, and our manufacturing process is not dependent on third party suppliers and OEMs
10
Professional Management
Mr. Rajendra Gandhi, Managing Director
• Founder of Stove Kraft with over 21 years of experience
• Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances in India
• Continues to be closely involved in the day-to-day affairs of the Company and is instrumental in promoting Stove Kraft’s culture of innovation
Mr. Rajiv Mehta, Chief Executive Officer
Mr. A.S. Balaji, Chief Financial Officer
•
Independent director on the board of Stove Kraft since June 2018 & has been re- designated as the CEO with effect from September 2019
• Previously worked as the CEO of Arvind Limited
• Bachelor’s degree in Chemical Engineering from the University of Mumbai and a
Master’s degree in Science from University of Pennsylvania; MBA from INSEAD
• Chartered Accountant and Cost Accountant over a decade of rich experience in
finance, business excellence, process automation & risk consulting.
• Previously associated with reputed organizations like CavinKare Pvt Ltd and KPMG
• Demonstrated history of working with private and publicly held companies in diverse
industries including FMCG, Logistics, insurance, manufacturing etc.
Ms. Neha Gandhi, Executive Director
• Holds a Bachelor’s Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA
• Served as a Graduate Trainee at
Viacom18
Mr. Venkitesh N, Head –Corporate Planning
• Bachelor’s degree in Technology from
University of Kerala
• 25+ years of experience in
manufacturing, product development and project management with a stint in BPL for 13 years
Mr. Rohit Mago, Head – Baddi Manufacturing Unit
• B Sc, Government Autonomous Science College, Jabalpur; MBA, Rani Durgavati Vishwavidyalya; Post-graduate certificate in retail management, XLRI Jamshedpur
• 18+ years of experience including a 14-
year stint with HPCL
*Source: F&S Report
11
Backed by Experienced Board
Ms. Shubha Rao Mayya, Independent Director
Holds a bachelor’s degree in commerce from the University of Mumbai and is a chartered accountant with the Institute of Chartered Accountants of India
Prior experience includes ICICI Limited, ICICI Prudential Life Insurance Company and Tata Consultancy Services
Serves as a Director on the board of Ace Manufacturing System Limited
Mr. Rajendra Gandhi, Managing Director
Founder of Stove Kraft with over 21 years of experience
Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances in India
Continues to be closely involved in the day-to-day affairs of the Company and is instrumental in promoting Stove Kraft’s culture of innovation
Mr. Lakshmikant Gupta, Independent Director
Mr. Rajiv Mehta, Chief Executive Officer
Holds a bachelor’s degree in economics from Hans Raj College, University of Delhi and a post-graduate diploma in business management from Institute of Management Technology, Ghaziabad
Independent director on the board of Stove Kraft since June 2018 and has been re-designated as the CEO of the Company with effect from September 2019. Previously worked as the CEO of Arvind Limited
Previously associated with Ibibo Group, Procter & Gamble and Girnar Software
Bachelor’s degree in Chemical Engineering from the University of Mumbai and a Master’s degree in Science from University of Pennsylvania; MBA from INSEAD
Mr. Anup S Shah, Independent Director
Ms. Neha Gandhi, Executive Director
Mr. Anup S Shah is an Additional Independent Director of the Company. He holds a Bachelor’s Degree in Commerce from HR College, Mumbai and a degree in law from Government Law College, Mumbai. He has over 36 years of experience in the field of law, specifically real estate law. He is the founder partner of Anup S Shah Law Firm in Bangalore.
Holds a Bachelor’s Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA
She has earlier served as a Graduate Trainee at Viacom18
12
Shift in Consumption Patterns and Favourable Governments Policies
Indian Consumer Appliance Market expected to grow @CAGR of ~9%
Key Growth Drivers
Indian Appliance and Consumer Electronics (ACE) Market
(INR Bn)
Kitchen Appliances Market
LCA
SCA
Non Stick Cookware
(INR Bn)
3,150
2,050
SKL’s product mix favorable to market growth trends - LCA and Non Stick growing at 12% and 15%
2017
2022E
207 10 86
111
2020
350
21
127
202
2025E
India Government’s Policies Favourable For The Consumer Appliances Industry
•
•
Shift from unorganized sector to organized sector in Indian manufacturing with the GST Implementation.
Lower tax brackets (5%, 12% and 18%) used for Indian Kitchen Items vs excise +VAT taxed at ~31%
• Make In India Initiative gave ACE market necessary boost which fostered Retail Manufacturing
•
Pradhan Mantri Ujjwala
Yojana – Target to provide 5 Crore LPG connection to under privileged women
• Majority Kitchen appliances are electricity driven, electricity consumption tripled since 2000
• Niche market for foreign investors, as Govt. allowed 100% FDI through automatic route in the electronic
hardware manufacturing sector
Moving towards Aspirational Lifestyle from functional Kitchen tools
Need for Space Utilization –Emerging Concept of Modular Kitchen
Growth of E-Commerce and easy Financing options
Awareness of Cookware through Mass Media and Retality Programs
Health and Environment Concerns
Technological Advancements
•All information on this slide is obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled “Kitchen Appliances Market in India” dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report"); “E” signifies Estimated
13
Indian Large & Small Cooking Appliance Market
Increasing Market for Large Cooking Appliances (LAC)
Increasing Trend by Sub Segments – Value (INR Billion)
Large Cooking Appliances
14,209
15,453
16,817
18,313
111
125
141
159
19,955
21,761
179
202
5 25 26
55
5 29
30
61
6 34
34
67
6 39
39
74
7 45
46
81
8
52
53
89
SKL is the market leader* in Free standing hobs and cook tops
2020
2021F
2022F
2023F
2024F
2025F
2020
2021F
2022F
2023F
2024F
2025F
Volume ('000 Units)
Value (INR Bn)
Free-standing Hobs
Cook Tops
Cooker Hoods
Built-in Hobs
Increasing Market for Small Cooking Appliances (SAC)
Increasing Trend by Sub Segments –Value (INR Billion)
Small Cooking Appliances
52,613
56,405
60,470
64,828
69,501
74,511
86
2020
93
101
109
118
127
2021F
2022F
2023F
2024F
2025F
Volume ('000 Units)
Value (INR Bn)
* As per market share of retail sales volume; # Others include electric rice cooker, blenders, electric kettle, coffee maker and juice extractor
12 12 18
44
13 13 19
48
14 14
21
52
15 16
23
56
16
17
25
60
17
18
27
64
2020
2021F
2022F
2023F
2024F
2025F
Mixer Grinder
Pressure Cooker
Food Processors
Others
#
•All information on this slide is obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled “Kitchen Appliances Market in India” dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report"); “F” signifies Forecasted
14
Non – Stick Cookware and Indian Household Utility Products
Increasing Market for Non-Stick Cookware
Types of Non-Stick Cookware Used (%) in 2020
7,117
7,819
8,590
9,437
10,367
11,389
16.8%
9.9%
74.1%
67.0%
56.2%
9.7
2020
11.3
13.2
15.4
18.0
21.0
2021F
2022F
2023F
2024F
2025F
CAGR
Value (INR Bn)
Volume ('000 Units)
a w a T
i a d a K
n a P g n i y r F
6.4%
c i m a r e C
e r a w k o o C
1.9%
1.3%
y t t e h c a p p A
k k a r a y i n a P
l a
Company has prominent position in South India for non-stick cookware
Household Utility Products – Market INR Billion in 2018
35.1%
s r e h t O
• Stove Kraft Limited is the 3rd largest market share (12.4%) by volume in Non- Stick Cookware • • Stove Kraft Limited has one of the few facilities in India to have an automated roller coating line
It enjoys a prominent position in the Non-Stick cookware market in the southern region
for manufacturing of non-stick cookware
• •
It offers special range of products which cater to the regional cuisine of Southern India
Latest innovation aimed at product efficiency and user convenience includes a new MIOTM non- stick cookware range
– Developed using latest Italian technology – – Range has 5 layer ‘Scandia’ coating
ensuring high durability and smoothness
242
216
144
71
57
52
37
Water Bottles
Dustbin
Flasks
Emergency Lamps
Ladders
Clothes Drying Stand
Floor Mop and Bucket
•Except for Company specific information, all other information on this slide has been obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled “Kitchen Appliances Market in India” dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report")
15
Thank You
Investor Relations Advisors :
CIN: L29301KA1999PLC025387
Contact Person:
Email Address:
Mr. Elangovan S., CS
elangovan.s@stovekraft.com
Mr. Irfan Raeen +91 97737 78669 irfan.raeen@linkintime.co.in
Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in