Welcome to my blog on the cooker industry. This blog aims to provide a comprehensive guide for investors interested in exploring this sector. Cooking will be an essential aspect of our daily lives. The cooker industry plays a vital role.
Throughout this blog, we will delve into various facets of the industry, including an in-depth look at the types of cookers available and the intricacies of the manufacturing process. Whether you’re an investor seeking promising opportunities or simply curious about the inner workings of this market, join us as we uncover the captivating world of cookers and the immense potential it holds.
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Overview of Cooker Industry
Food was traditionally prepared in open pots. However, this was time-consuming and posed hazards due to smoke inhalation during the cooking process.
Fortunately, the advent of pressure cookers has revolutionized the way we cook. This has several advantages over open-pot cooking:
Increased Cooking Speed
Pressure cookers utilize a unique design and a sealed environment, allowing them to cook meals up to 53% faster compared to traditional methods. This significant reduction is highly beneficial for individuals and families.
Environmental Friendly
Pressure cookers promote an eco-friendly kitchen by reducing reliance on conventional fuel sources like firewood, charcoal, and kerosene. This not only contributes to environmental preservation but also eliminates health hazards associated with smoke inhalation.
How Power is Generated
Types of Cookers
There are three broad means of classification based on:
- Technology
- Material used
- Capacity
Technology
Pressure Cookers
Pressure cookers are sealed cooking pots that use steam pressure to cook food quickly. They are ideal for preparing a wide range of dishes, including rice, soups, stews, and curries.
Electric Cookers
Electric cookers use electricity for cooking. These are programmable, offering convenience and ease of use.
Induction Cookers
These cookers use electromagnetic fields to heat the cookware directly, resulting in fast and efficient cooking.
Microwave Cookers
Microwave cookers are designed to cook using microwave radiation. They are commonly used for reheating food, defrosting, and cooking small portions.
Solar Cookers
- These cookers use Solar power for cooking.
Note: The focus of this blog will be more on Pressure and Electric cookers.
Material Used
Aluminium
These cookers are light and affordable. They may react with certain acidic or alkaline foods, affecting the taste and quality of the dish. Despite this, their affordability makes them a popular choice among a vast majority of consumers.
Brass
They are durable and have excellent heat conductivity. These cookers however need regular maintenance and polishing. They are also costly.
Stainless Steel
They do not react with food, making them safe for cooking a variety of dishes. However, stainless steel is not the best conductor of heat. Thus, it takes longer to cook compared to other materials.
Hard Anodized Aluminium
The Hard Anodised surface is non-toxic, non-staining and non-reactive with foods. It is thermal-efficient, heats fast and evenly and is not spoiled by high heat. It is tough and durable, will not tarnish or corrode and will stay looking new for years. (Reference: Hawkins website)
Insights for Investors
Aluminium and stainless steel cumulatively captured 70% of the market revenues in 2020, with aluminium leading the market. The reasons are:
- Lower pricing compared to other material types like stainless steel, brass, and hard-anodized aluminium. Thus, these cookers are the natural choice for price-conscious customers.
- The unorganised segment and the small-scale manufacturers focus on Aluminium cookers. These products have a large market in the rural areas.
Reference: https://www.researchandmarkets.com/reports/5473892/india-pressure-cooker-market-2021-2027-market
As we discussed earlier, one differentiating factor between aluminium and stainless steel cookers is their reaction with food items. Aluminium cookers may react with certain foods, whereas stainless steel cookers do not exhibit the same reactivity. This distinction has played a significant role in the growing popularity of stainless steel pressure cookers, especially among urban consumers who prioritize durability and modern aesthetics in their kitchen appliances. The stainless steel segment has experienced remarkable growth, fueled by the increasing disposable income of consumers and their willingness to invest in higher-quality kitchen appliances.
Cooker Capacity
When searching any online shopping site for cookers, you will discover a wide range of products available in various sizes. The choice of a specific capacity depends on factors such as the size of the family, the number of family members, or the desired volume of food to be cooked at a given point in time. The capacity of cookers is measured in litres. The most common sizes are:
- Cookers with a capacity of up to 3 litres are ideal for small-sized families, while there are even 1-litre cookers available that are well-suited for individuals.
- In the 3 to 5 litres range, you’ll find cookers suitable for medium-sized families.
- For larger families or those looking to cook in bulk, cookers with a capacity above 5 litres are commonly used.
Pressure Cookers of 3 and 5-litre capacity are mostly demanded by the customers.
How a Cooker is Manufactured?
Aluminium is the main raw material used. A 5 Kg cooker uses around 1 Kg of Aluminium. (Reference TTK Annual Report)
Note: The choice of main raw material for cookers depends on the type of cooker being manufactured. For instance, Aluminium is the primary raw material used for Aluminium cookers, while Brass is utilized for Brass cookers.
Parts of a Cooker
The parts of a Pressure Cooker are:
- Main body: It is where food is cooked. It is made of Aluminium. This is also called as cooker body.
- Lid: It seals the cooker to create a pressurized environment. It is made of Aluminium.
- Gasket: It is made of rubber or Silicone to ensure an airtight seal between the main body and lid. This is also called a sealing ring.
- Handles: The main body and lid of the cooker feature handles made of Bakelite material, which serve the purpose of facilitating easy handling. One notable aspect of these handles is their ability to withstand the heat generated by the main body and lid, ensuring that their surface remains cool to the touch. This is particularly important as the handle is where we place our hands to open the lid or move the cooker.
- Regulator: It is a small valve or weight that controls the pressure inside the cooker by releasing excess steam. It helps maintain the desired cooking pressure.
- Fusible Plug: It is a safety feature to release steam and prevents excessive pressure buildup. It melts at a specific temperature, allowing steam to escape in case the pressure exceeds safe levels.
- Other Components: Various other components such as screws, rivets, packing boxes, and additional safety features may be included in different cooker models.
The below image helps you to better understand the above.
Reference: Hawkins website
Insights for Investors
As an investor, you may question if these details give you any value?. The straightforward answer is ‘No’. However, I would say the answer is ‘Yes’ as it gives many insights.
- Parts: The number of parts involved in cooker manufacturing is very limited, typically not exceeding 15.
- Raw Material: Aluminium, the primary raw material used in cooker production, is readily available to anyone, ensuring a stable supply.
- Manufacturing Process: The manufacturing process requires minimal machinery, making it relatively straightforward to manufacture.
- Skill Set: The required skill set for cooker manufacturing is not overly complex. With minimal training, individuals can acquire the necessary expertise to effectively engage in the manufacturing process.
Although these details may not directly impact investment decisions, they provide investors with valuable insights into the cooker manufacturing industry. Starting a cooker manufacturing factory requires a limited capital investment of 2 – 3 crores and necessary approvals. With the initial capital, individuals can enter the industry and gradually expand their operations by acquiring additional machines and scaling up production.
This observation leads to an intriguing aspect of the market structure. It can be categorized into two main segments: (1) A large number of manufacturers operating in the small-scale manufacturing and unorganized sector, and (2) a smaller group of organized manufacturers, including listed companies.
In the next blog, we will delve deeper into the market structure, competition, and the unique dynamics that shape this industry. By exploring these aspects, investors will gain a better understanding of the opportunities and challenges within the cooker manufacturing sector.
Cooker Manufacturing Companies in India
The cooker industry in India is marked by intense competition, with numerous manufacturers operating in both the organized and unorganized sectors. However, among the listed companies (Organized sector) there are 5 notable players:
- Hawkins Cookers Limited
- TTK India Limited
- Stove Kraft Limited
- Butterfly Gandhimati Appliances Ltd.
- Bajaj Electricals
Of these 5 companies, Hawkins is the only company that is predominantly into Pressure cooker manufacturing. The other companies are in diversified business extending to cookware and kitchen essentials. Read about all the above 5 companies in this blog.
In our next blog, we will dive deeper into each of these companies, exploring their product offerings, market presence, and competitive advantages. Stay tuned for an in-depth analysis of these prominent players in this industry.
Conclusion
The cooker industry presents a compelling opportunity for investors to consider. Predominant players in India, such as Hawkins Cookers Limited, TTK India Limited, Stove Kraft Limited, Butterfly Gandhimati Appliances Ltd., and Bajaj Electrical. While competition is fierce, these companies continue to innovate and capture market share. They manufacture a diverse range of cookers, including those based on material and capacity. Consumers have a wide array of options to suit their cooking needs. As the demand for efficient and time-saving cooking solutions continues to rise, investing in the cooker industry holds promising prospects for investors seeking long-term growth and returns.
By understanding the nuances of this dynamic sector, investors can make informed decisions and grab opportunities (when it presents themselves in the form of the right valuation) in the cooker industry.
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