Geopolitical Tensions Spark Surge in Induction Cooktop Demand: StoveKraft MD Highlights LPG Fears and Business Outlook
In a recent interview with NDTV Profit, Rajendra Gandhi, Managing Director of StoveKraft Limited, shed light on the dramatic rise in demand for induction and electric cooktops across India. The surge is largely attributed to widespread concerns over potential shortages of liquefied petroleum gas (LPG), fueled by ongoing geopolitical instability in the Middle East, particularly involving Iran and related conflicts affecting global energy supplies.
StoveKraft, a leading player in the kitchen appliances sector with popular brands like Pigeon, Wonderchef, and others, manufactures both LPG stoves and electric alternatives such as induction and infrared cooktops. Gandhi noted that while the company produces LPG-based products, consumer behavior is shifting rapidly toward electric options amid fears of supply disruptions.
According to Gandhi, there has been a significant surge in the consumption of electric stoves. He specifically highlighted a 3x increase in induction cooktop sales over the last week, based on real-time data from online channels. This spike is evident in both e-commerce platforms and offline retail, with the company positioned as a market leader in the induction category. The demand reflects household anxiety over LPG and LNG availability, despite government assurances that there is no immediate crisis and supply chains remain stable.
The fears stem from broader instability in global energy markets, including supply chain ripple effects from the Iran-related conflict. Although officials have downplayed panic buying and maintained that normal delivery cycles continue, precautionary purchases have driven consumers toward reliable electric alternatives for everyday cooking.
On the business front, StoveKraft reported solid performance in recent quarters. The company achieved 13% revenue growth in Q3, with profit after tax exceeding expectations due to lower interest and tax burdens. Non-stick cookware grew by 16%, exports performed strongly, and the partnership with IKEA continued to show positive momentum. Despite slower growth in some segments like pressure cookers, overall momentum remains encouraging.
Looking ahead, Gandhi reaffirmed the company’s guidance of approximately 15% revenue growth for FY26. He expressed confidence in achieving double-digit growth this quarter and beyond, even before factoring in the recent induction surge. The company is well-capitalized and capable of ramping up production, though meeting an extreme 3-4x demand spike immediately could pose challenges. Gandhi anticipates stabilization and sustained growth in the coming months if the situation persists.
However, the rapid demand increase comes with headwinds. Supply-side pressures include rising costs for metals, imported electronic components (primarily from China), plastics, and forex fluctuations. These factors, combined with logistics disruptions, are exerting upward pressure on input costs. While price adjustments occur quarterly and the company plans to pass on increases to consumers with some lag, Gandhi acknowledged a potential 1-2% impact on gross margins in the current quarter. Despite this temporary squeeze, absolute revenue is expected to grow strongly.
The interview underscores a broader market trend: as households hedge against energy uncertainty, electric cooking solutions are gaining traction. For StoveKraft, this presents an opportunity to capitalize on its leadership in induction technology while navigating short-term cost and supply dynamics. The company remains optimistic about delivering on its growth targets amid these evolving consumer preferences.
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