Stove Kraft Limited has informed the Exchange about Investor Presentation
2nd February 2023
BSE Limited
National Stock Exchange of India Ltd.
Phiroze Jeejeebhoy Towers,
Exchange Plaza, Plot no. C/1, G Block,
Dalal Street,
Mumbai- 400 001
Scrip Code: 543260
Dear Sir/Madam,
Bandra-Kurla Complex
Bandra (E), Mumbai - 400 051
NSE Symbol: STOVEKRAFT
Sub: Investor Presentation for Conference Call – Regulation 30(6).
This has reference to our letter dated 27 January 2023 informing about conference call being
organized by Orient Capital. In this connection please find attached a presentation to be made
to analysts and the institutional investors at the conference call scheduled today.
After the conference call, a transcript of the discussion shall also be posted on the website of
the Company, www.stovekraft.com for information of the investors.
Thanking you,
Yours faithfully, For Stove Kraft Limited
Rajendra Gandhi Managing Director
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STOVE KRAFT LIMITED
Q3 & 9MFY23 INVESTOR PRESENTATION
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.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or
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
The only way to do great work is to love what you do
- Steve Jobs“
”
Q3 & 9MFY23 FINANCIAL PERFORMANCE
3
Q3FY23 Performance (Y-o-Y)
Q3FY23 Revenues
INR 324.5 crores
+8.9 % y-o-y
Q3FY23 Gross Profit
INR 108.6 crores
+15.1% Y-o-Y
Q3FY23 EBITDA
INR 26.4 crores
+23.0% Y-o-Y
No. of Outlets
1,21,765
15.367
1,06,398
Sep-22
Outlets added in Q3FY23
Dec-22
^ EBITDA is before allowance for expected credit loss; Rs.1 crore for Q3 FY23.
Revenue Breakup: Q3 FY23
23.1%
6.5%
13.7%
33.5%
15.1%
8.1%
Pressure Cookers
LED
Induction Cooktop
Gas Cooktp
Nonstick Cookware
Mixers / Small Appliances / Others
4
9MFY23 Performance (Y-o-Y)
9MFY23 Revenues
INR 1005.8 crores
+14.9% Y-o-Y
9MFY23 Gross Profit
INR 331.0 crores
+16.3% Y-o-Y
9MFY23 EBITDA
INR 95.9 crores
+10.1% Y-o-Y
No. of Outlets
42,540
Revenue Breakup: 9M FY23
1,21,765
29.6%
21.7%
79,225
Mar-22
Outlets added in 9MFY23
Dec-22
^ EBITDA is before allowance for expected credit loss; Rs.2.75 crore for YTD Dec FY23.
6.5%
12.1%
20.9%
9.2%
Pressure Cookers
LED
Induction Cooktop
Gas Cooktp
Nonstick Cookware
Mixers / Small Appliances / Others
5
Profit & Loss Statement – Q3 & 9M FY23
Profit & Loss Statement (Rs. Crs.) Revenue from Operations Cost of Materials Consumed Changes in Inventories of Finished Goods and Work in Progress Manufacturing and Operating Costs Gross Profit GP % Employee Benefits Expense Other Expenses EBITDA EBITDA % Other Income Depreciation and Amortisation Expense EBIT Finance Costs Exceptional Items PBT Total Tax Expense Profit for the year PAT %
Q3 FY23 324.5
222.3
-6.4
0.0
108.6
33.5%
38.8
43.4
26.4
8.1%
-2.9
8.3
15.2
4.0
1.0
10.2
2.4
7.8
2.4%
Q3 FY22 298.0
Y-o-Y 8.9%
246.5
-42.9
0.0
94.3
31.7%
33.5
39.4
21.5
7.2%
0.1
5.6
15.9
3.0
2.9
10.0
-1.1
11.1
3.7%
15.1%
23.0%
-4.8%
1.4%
-29.8%
9MFY23 1,005.8
681.5
-6.7
0.0
331.0
32.9%
106.4
128.7
95.9
9.5%
-5.2
22.3
68.4
10.4
2.8
55.2
13.5
41.8
4.2%
9MFY22 875.0
Y-o-Y 14.9%
643.9
-53.5
0.0
284.5
32.5%
87.6
109.9
87.1
10.0%
0.6
14.5
73.2
9.8
7.8
55.6
8.1
47.6
5.4%
16.3%
10.1%
-6.6%
-0.7%
-12.2%
6
Success is walking from failure to failure with no loss of enthusiasm
- Winston Churchill“
”
ABOUT STOVE KRAFT LIMITED
Key Milestones
Granted trademark registrations for Gilma
Investments by SIDBI Commenced production at Harohalli facility
Commenced exports to retailers in the USA
Achieved sales of 9.1 million units
IPO with listing on NSE and BSE
2001
2008
2014
2018
2021
1999
2003
2010
2015
2019
Incorporated Stove Kraft as a Pvt. Limited
Granted trademark registrations for Pigeon
First Investment by Sequoia
Certificate of registration of design was granted for our product ‘Super cooker’
LED Plant in Bangalore & Inner Lid Cooker Plant in Baddi, HP
10
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, rice cookers, electric kettles, food toasters, sandwich makers, knives, steam irons, steamers, air fryers and electric grills
juicers,
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
appliances
– juicers,
Food Small processors, hand blenders, hand mixers, mini choppers, oven toaster grills, rice cookers, coffee makers, toasters, sandwich makers and kettles
Other products – Steam irons, dry irons, water heaters and oil fin radiators
LED bulbs
Battens
Downlights
Value
Semi - Premium
Premium
Multi-brand approach to capture the entire value chain…
20+ year old brand One of the market leaders for certain products such as cookware
Launched in 2016 and manufacturing commenced in 2019
*Source: F&S Report
• 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
11
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
Rigorous review and monitoring process
Subject to a rigorous review and monitoring process undertaken at our Bengaluru Facility
Sourcing team and quality assurance team
Dedicated sourcing team and quality assurance team based out of China
Total ~46 acres with ~30 acres available for future expansion
Both facilities have a high level of backward integration, and our manufacturing process is not dependent on third party suppliers and OEMs
12
Professional Management
Mr. Rajendra Gandhi, Managing Director
Mr. A.S. Balaji, Chief Financial Officer
• 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
Ms. Neha Gandhi, Executive Director
Mr. Venkitesh N, Head–Corporate Planning
• 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
• 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
• 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
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
13
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
Mr. Rajendra Gandhi, Managing Director
• Serves as a Director on the board of Ace Manufacturing System Limited
• Founder of Stove Kraft with over 21 years of experience
• Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances
Mr. Lakshmikant Gupta, Independent Director
in India
• 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
• Previously associated with Ibibo Group, Procter & Gamble and Girnar Software
• 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
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
Mr. Anup S Shah, Independent Director
• She has earlier served as a Graduate Trainee at Viacom18
• 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.
14
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
Kitchen Appliances Market
(INR Bn)
LCA
SCA
Non Stick Cookware
3,150
2,050
2017
2022E
SKL’s product mix favorable to market growth trends - LCA and Non Stick growing at 12% and 15%
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
01
02
03
04
05
06
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
15
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
125
141
159
19,955
179
21,761
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
2021F
2022F Volume ('000 Units)
2023F
2024F
2025F
Value (INR Bn)
2020
2021F
2022F
2023F
2024F
2025F
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
93
101
109
118
127
12 12 18
44
13 13 19
48
14 14 21
52
15 16
23
56
16 17
25
60
17 18
27
64
2021F
2022F
2023F
2024F
2025F
Volume ('000 Units)
Value (INR Bn)
2020
2021F
2022F
2023F
2024F
Mixer Grinder
Pressure Cooker
Food Processors
2025F
Others
#
111
2020
86
2020
* As per market share of retail sales volume; # Others include electric rice cooker, blenders, electric kettle, coffee maker and juice extractor
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
16
Non – Stick Cookware and Indian Household Utility Products
Increasing Market for Non-Stick Cookware
Types of Non-Stick Cookware Used (%) in 2020
8,590
9,437
10,367
11,389
16.8%
9.9%
74.1%
67.0%
56.2%
7,117
7,819
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
35.1%
s r e h t O
Company has prominent position in South India for non-stick cookware
Household Utility Products – Market INR Billion in 2018
• • •
• •
Stove Kraft Limited is the 3rd largest market share (12.4%) by volume in Non- Stick Cookware
It enjoys a prominent position in the Non-Stick cookware market in the southern region
242
216
Stove Kraft Limited has one of the few facilities in India to have an automated roller coating line 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 ensuring high durability and smoothness Range has 5 layer ‘Scandia’ coating
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")
17
Thank You
Investor Relations Advisors :
CIN: L29301KA1999PLC025387
Contact Person:
Email Address:
Mr. Shrinivas P H - Company Secretary
cs@stovekraft.com
Mr. Irfan Raeen +91 97737 78669 irfan.raeen@linkintime.co.in
Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in