Stove Kraft to set up automated foundry for cast iron cookware

Bengaluru-based Stove Kraft sets up automated cast iron foundry to manufacture cookware for global markets. Investing ₹55 crore, the company plans to hit markets by April 2024. Women entrepreneurs to operate 100 of 500 own outlets, with ₹300 crore invested in last 3 yrs & 5,500 employees, 70% women.

Stove Kraft Ltd., the owner of cookware brand Pigeon, is setting up a fully automated cast iron foundry to manufacture cast iron cookware, a fast-growing cooking medium, globally.

“We are currently building the country’s first completely automated foundry for cast iron cookware,’‘ Founder and Managing Director Rajendra Gandhi told The Hindu. “We will start production trials in December and products from this foundry will hit the markets by April 2024,” he added.

Cast iron, by nature, is a good cooking medium, perceived to be safer than other metals without coating and comes with high heat retention properties which makes it fuel efficient as well, according to Mr. Gandhi.

“The segment has been gaining momentum in developed markets including the U.S and Europe. We already have sizable orders from several new and existing global cookware brands/retailers,’” he added. For the technical knowhow and equipment supply and maintenance, Stove Kraft roped in DISA, a Norwegian provider of molding equipment and foundry technology, and New Jersey-based Inductotherm that offers technology for heating and melting of metal/steel.

“We will invest a capex of ₹55 crore to put up this foundry that will melt and mold all kinds of cast iron cookware right from tawas, kadais and frying pans for Indian market and various other types cookware for global markets,” Mr. Gandhi stated. According to him, the Pigeon brand. which currently exports to 12 countries, has plans to ramp up exports and 50% of the cast iron cookware produced at the foundry will be for export markets. “Our key strategy has been to offer high-quality products at affordable prices and cater to the masses. Our target is to grow the cast iron cookware business to ₹500 crore in five years,” Mr. Gandhi maintained. To offer women a launch pad to entrepreneurship, Stove Kraft has introduced a unique programme which would help them own and operate a business without any upfront expenditure towards infrastructure and merchandise. However, each women entrepreneur has to make a refundable security deposit of ₹15 lakh to be under this programme. “We currently have 100 exclusive Pigeon outlets mostly in Karnataka, Andhra Pradesh and we are also scaling up in Kerala and Tamil Nadu. By 2025, we will have 500 own outlets and we are investing ₹75 crore in store expansion activities,” Mr. Gandhi elaborated. The company is expecting women entrepreneurs to operate at least 100 of these stores. The soft launch of this women entrepreneurship programme last week attracted 219 responses, he claimed. Stove Kraft has invested ₹300 crore in the last three years to expand its production capacity, manufacturing and R&D infrastructure. It employs 5,500 people, of which more than 70% are women.

The company is also trying to boost its water bottle and flask manufacturing and sales. Stove Kraft, which posted a revenue of ₹ 1,280 crore during FY23, has been growing at CAGR of 19% in the last five years, Mr. Gandhi said.