LPG Crisis Fuels Surge in Demand for Induction Cookers, Boosting Shares of TTK Prestige and Other Household Appliance Companies

Household Appliances Stocks Surge on Induction Cooktop and Electric Kettle Demand

Shares of TTK Prestige and Greenchef Appliances rose 9% and 6.5%, respectively, on March 12, as sales of induction cooktops and electric kettles surged in the wake of cooking gas supply concerns due to the war in West Asia. TTK Prestige shares rose nearly 25% in the last three trading sessions, while Crompton Greaves Consumer Electricals were trading 2% higher and Jaipan Industries were trading 19% higher.

According to industry players, the surge in demand for induction cooktops and electric kettles is attributed to the ongoing cooking gas supply concerns. Tata Group's Croma observed a threefold jump in demand for induction cooktops over the past few days, while Stovekraft Ltd, the company behind the popular kitchen appliance brand Pigeon, noted that its average weekly online sales have jumped four times.

Croma's average daily run rate for induction cooktops has surged significantly, with sales nearly doubling compared to the regular run rate. The company is ensuring adequate availability across its stores and online channels to meet the increased demand. Additionally, Amazon India reported a 30X increase in sales of induction cooktops over the last two days, with rice cookers and electric pressure cookers seeing a 4X increase and air fryers and multi-use kettles seeing a 2X increase in sales.

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Stovekraft Ltd, which manufactures around 2 lakh units of induction cooktops at its manufacturing facility in Harohalli, Karnataka, plans to ramp up production in the coming financial year. The company expects the shift towards energy-efficient and alternative cooking solutions to continue as consumers increasingly look for reliable and cost-effective kitchen appliances.

Key Figures:

• TTK Prestige: 9% increase on March 12
• Greenchef Appliances: 6.5% increase on March 12
• Crompton Greaves Consumer Electricals: 2% increase
• Jaipan Industries: 19% increase
• Amazon India: 30X increase in sales of induction cooktops over the last two days
• Stovekraft Ltd: 4X spike in average weekly sales of induction cooktops since the beginning of the ongoing tensions in the Middle East