Stove Kraft to acquire the business of SKAVA Electric; it will foray into electric switches & accessories segment

Stove Kraft Limited today said that it will acquire the business and IPR rights from SKAVA Electric Private Ltd to foray into the business of manufacturing low voltage switchgear solutions like electrical switches, sockets, distribution boxes, switchboards, M.C.B, bulb holders, etc.

The acquisition will be made 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, the founder of SKAVA will be appointed as a business head of this segment and will be associated with Stove Kraft for at least 4 years to ensure a smooth transition as well as support future business growth.

In addition, Stove Kraft will also absorb the design, operation & manufacturing team from SKAVA Electric Private Ltd to kickstart the production. Further, Stove Kraft also plans to incur additional CapEx of INRS Cr. over the next 3-4 years on moulds and machines to increase the production capacity.

SKAVA currently enjoys a robust distribution network in Southern India and will supplement Stove Kraft's existing distribution network. The combined sales network will comprise of retail network, builder projects through professional channels of interior designers/architects, e-commerce platforms like Amazon, Flipkart, Udaan, JioMart etc. and leading physical channel partner networks like Croma, Future group, DMart, Reliance Group, etc. The Company intends to cover the majority of the smart cities of India, as listed under the National Smart Cities Mission by the Department of Ministry of Housing and Urban Affairs.

Commenting on this development, Mr. Rajendra Gandhi, Managing Director said, "This acquisition will act as a natural extension to our existing product offerings of Pigeon LED. SKAVA enjoys a strong brand recall and has a wide distribution network in Tier-I and Tier-II cities of Southern India. SKAVA has developed multiple innovative products in the past and with the support of Stove Kraft will continue to do so in the future as well. With this acquisition, Stove Kraft will cater to the mid-segment Electric Switches & Accessories segment and aims to capture a market share of 3 per cent in the next three fiscal years".

Stove Kraft Limited (SKL) is a kitchen solution and an emerging home solutions brand. It is one of the leading brands for home and kitchen appliances in India, and one of the dominant players for pressure cookers and amongst the market leaders in the sale of free-standing hobs, cooktops and nonstick cookware. SKL 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.