Small Cooking Appliances in India

PROSPECTS

Increased LPG coverage boosts demand

The Indian Government is pushing the use of clean fuel through the Pradhan Mantri Ujjwala Yojana scheme, leading to an increase in the coverage of LPG as the number of subscribers has grown. Historically, it has been common practice in rural areas to use wood and coal fires to cook food, creating significant pollution and affecting the health of the person doing the cooking.

Electrification scheme creating opportunities

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme, introduced in 2017, aimed to extend the range of electrification, taking in rural and urban households and remote areas. The scheme provided free connections for below the poverty line (BPL) households, while other households were required to pay INR500 for the connection.

New, smaller households seek convenient small cooking appliances

The rising number of households in India, the reduction in average household size and the growth of households such as nuclear families and individuals living in rented apartments as flatmates are creating conducive conditions for the development of small cooking appliances. As more people, both men and women, move away from home to work and set up new living units, convenient, small appliances such as freestanding hobs are becoming increasingly central to consumer lifestyles.

COMPETITIVE LANDSCAPE

TKK Prestige benefits from strong brand equity

TKK Prestige Ltd retained the lead in small cooking appliances in the final year of the review period. The company has a strong presence in freestanding hobs, and benefits from strong brand equity built upon memorable advertising campaigns and extensive distribution incorporating both store-based and online channels.

Intensifying competition

The significant growth potential of small cooking appliances is attracting the attention of new national, local and regional players, as well as seeing competition intensified by increasing investment from existing players. Given that the category is price-sensitive, local companies sometimes compete extremely aggressively in terms of price, impacting industry margins.

Low-pricing underpins fragmentation

Small cooking appliances remains a relatively fragmented category. As more products fall in the low-price range than in categories comprised of larger appliances, unbranded and regional players represent a considerable competitive threat to national and multinational players.

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