From South to North: Stove Kraft expands footprint by launching first brand outlet in Delhi
Stove Kraft Limited, a prominent player in cutting-edge Cookware, Kitchenware Appliances, and Consumer Lighting, has made a major announcement regarding the company’s expanding footprint in the North side of the country.
Expanding Footprint
As per the detail in the press release, the company has launched its first exclusive Pigeon Brand Outlet in Mayur Vihar, New Delhi. This introduction signifies the company’s inaugural step into the North Indian market with an exclusive retail store. The primary goal is to cater to the rising demand from customers desiring an enhanced in-store shopping experience. Over the next 30 days, the company plans to inaugurate an additional 5 exclusive stores across the Delhi NCR market.
The dedicated Pigeon brand outlet in Delhi spans an area measuring 610 square feet. This deliberate extension of exclusive brand outlets empowers the company to expand its presence in North India, consequently strengthening its market stance nationwide. Presently, the company operates 124 exclusive retail outlets across Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana.
As Stove Kraft sets forth on its expansion journey in North India, the company takes pride in the overwhelming love and acceptance received from consumers across its existing stores in South India. This positive response from customers in the south has been instrumental in motivating the company to expand its footprint.
Stock Performance:
At the beginning of the day, the stock opened at Rs 489.95 per share on the BSE, reaching intraday highs and lows of Rs 491.65 and Rs 479.60, respectively. Finally, it concluded the day at Rs 481.35 per share, representing an almost flat closing today.
The present market capitalisation of the company stands at Rs 1590 crore. Furthermore, the stock has not delivered impressive returns to its shareholders. However, upon its listing in the Indian market in February 2021, the stock debuted with a premium of 21% over its final issue price of Rs 385 per share, and it is currently trading around 25% above its issue price.
Business Overview
Stove Kraft Limited is recognized as India’s foremost kitchen appliances brand, founded by Rajendra J Gandhi. Originating from kerosene wick stoves in 1994, the brand now offers a diverse range of over 600 products under Pigeon, Gilma, Black & Decker, and Pigeon LED. Boasting a turnover exceeding Rs 1,000 Crore, its reach extends across the nation through 25 Super Distributors, 600 Distributors, and 61,000 Dealers.
The company’s global presence spans over 12 countries, including the USA, Middle East, and Africa, catering to esteemed clients such as Walmart and Big Lots. Notably, it hosts the largest manufacturing facility for kitchen appliances in the Harohalli Industrial Area, near Bangalore. Additionally, its second manufacturing unit operates in Baddi, Himachal Pradesh.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.