Rising LPG prices and supply restrictions in India have triggered a sudden surge in demand for electric cooking appliances. Induction cooktops, electric pressure cookers, and other appliances are witnessing record sales as households and restaurants search for alternative cooking solutions.
Kitchen appliance manufacturers have increased production and tested supply chains for imported components due to an unexpected spike in demand for induction cooktops brought on by India’s restrictions on LPG supplies.
Induction Cooktop Demand Surges Amid LPG Restrictions
After the government raised the cost of LPG cylinders and placed restrictions on their reservation, the demand for induction cooktops surged, forcing urban homes and eateries to search for electric cooking options.
Managing director Rajendra Gandhi told Mint that average sales of induction cooktops at Stovekraft Ltd., the parent company of the kitchen appliance brands Pigeon and Gilma, have surged nearly four times over the previous few days, with weekly demand almost five times more than it was during the same period last year.
Manufacturers Witness Record Sales Growth
“The most popular items right now are induction cooktops, followed by cookware,” Gandhi stated. According to him, the majority of demand comes from retail customers via internet channels, with some support from eateries and cloud kitchens.
The CEO and founder of Wonderchef Home Appliances Pvt Ltd, Ravi Saxena, reported that the company’s monthly supply of induction cooktops sold out in a matter of hours following an unexpected spike in demand.
🔥 Induction Cooktop Demand Snapshot
- Stovekraft Sales: 4x increase in recent days
- Weekly Demand: 5x higher than last year
- Wonderchef Stock: Sold out in hours
- Electric Pressure Cooker Sales: 4x increase
- Induction Cooktop Sales: 30x spike on Amazon
- Main Driver: LPG price hikes and supply restrictions
Companies Struggle to Meet Demand
“In less than half a day, we have already consumed all we offer in a month,” Saxena stated. About 5% of Wonderchef’s sales are induction cooktops, but Saxena claims that the current surge has brought the segment into clearer focus.
Hawkins Cookers CEO and chairman Subhadip Dutta Choudhury told Mint, “Sales volumes that normally take around two weeks to reach are currently happening within a single day.”
Online Marketplace Sales Surge
In July of last year, Hawkins began offering electric kettles and induction cooktops. According to Choudhury, the segment’s present revenue contribution is in the low single digits.
Additionally, demand for electric cooking gadgets has increased on online marketplaces.
âš¡ Electric Cooking Appliance Boom
- Electric Pressure Cookers: Sales up 4x
- Rice Cookers: Sales up 4x
- Air Fryers: Sales doubled
- Multipurpose Kettles: Sales doubled
- Induction-Compatible Cookware: Demand up 10%
E-commerce Demand Explodes
Sales of electric pressure cookers and rice cookers have soared fourfold during the past two days, while sales of induction cooktops have increased thirtyfold.
Additionally, sales of air fryers and multipurpose kettles have doubled compared to a typical day, according to an Amazon India representative.
Growing Demand Across Appliance Brands
Demand for items like electric cookers and kettles has increased by 20–30% at TTK Prestige, while sales of induction-compatible cookware, such as non-stick cookers and pans, have increased by roughly 10% recently, according to the business.
The abrupt change in consumer behavior is a result of India’s tightening LPG supplies amid difficulties related to the conflict in West Asia.
India’s Dependence on LPG Imports
About 60% of India’s LPG needs are imported, mostly from Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates.
Anand Ramanathan, partner and consumer leader (South Asia) at Deloitte India, claims that induction cooktops are a low-penetration category in India. These products are therefore not well stocked. In India, induction cookers do not have a high turnover rate.
Traditional Cooking Habits Limit Adoption
Due in part to traditional cooking practices and the fact that many Indian kitchen utensils lack flat bottoms, making them incompatible with induction, only a small portion of homes use them, according to Ramanathan. As orders increase, appliance manufacturers are expanding their production of induction cooktops.
At its Harohalli facility in Karnataka, Stovekraft produces over 200,000 induction cooktops every month, with ambitions to grow that number to 300,000. Gandhi declared, “To meet the rise in demand, we have started to ramp up production and boost supply.”
Production Risks and Market Uncertainty
According to Choudhury of Hawkins, the business is attempting to treble its production pace, but it is still hesitant to raise capacity too quickly in case the demand spike turns out to be transient.
Executives stated that although the present surge has increased sales, businesses are nonetheless aware that demand may level off once LPG supplies return to normal.
Inventory Constraints in the Industry
According to Ramanathan of Deloitte India, the industry’s inadequate inventory has led to the current constraint. It is not a category with a lot of inventory. Due to the extremely low frequency of purchases, retailers usually keep roughly 90 days’ worth of inventory. The market lacks a substantial buffer of stock since demand has abruptly increased.
We are currently experiencing a shortage of supplies as a result of it,” he stated. “The trade itself is stockpiling because it anticipates an increase in demand, which is contributing to some of the pressure.”
Global Supply Chain Dependencies
Similar demand increases frequently happen during times of supply disruption, according to Hawkins’ Choudhury, and they usually subside once the acute strain subsides. According to executives, supply networks might find it difficult to swiftly adapt if demand stays high.
This is due to the fact that induction cooktops depend on a variety of electronic parts and specialized materials that go via intricate international supply chains. Hawkins relies on some imported technology, especially control boards, according to Choudhury.
Dependence on Imported Electronics
“These components come from all over the world and have long supply chains,” he stated, noting that although the company has enough inventory, it can encounter difficulties if the increase persists.
The printed circuit board (PCB), which regulates power flow and temperature, and the copper induction coil, which creates the electromagnetic field required for cooking, are the two most important parts of an induction cooktop.
Manufacturing Supply Chain Risks
PCBs and control modules are usually obtained from China and other Asian manufacturing hubs, although coils and metal parts are often produced locally.
According to Ramanathan, “any disturbance there can hold down the capacity to ramp up manufacturing because many of the components used in induction stoves come from China.”
Component Procurement Delays
According to Saxena of Wonderchef, procurement may take weeks if businesses require more PCBs and glass components than they currently have ordered.
According to Saxena, “supply chains are restricted and if there is a sudden rush, then that supply chain breaks,” adding that it can take one to two months for new parts to arrive.
Logistics and Shipping Challenges
Additionally, Stovekraft noted the potential for more limited component supply. Gandhi stated that even if the company has enough inventory, pressure may arise for glass and electronic components.
Disruptions in logistics could make supply responses much more difficult. “Capacity concerns are a major cause of disruptions in the shipping industry.
When the most recent shock struck, it had actually only begun to rebound to pre-pandemic levels, according to Ramanathan. Managing production and supplier cooperation to satisfy demand while preventing deeper bottlenecks in component procurement is the top priority, according to the CEOs.
Frequently Asked Questions
1. What is the reason behind the rise in demand for induction cooktops in India?
Due to government restrictions on LPG cylinder reservations and price increases, demand has increased. Because of this, a lot of homes, eateries, and cloud kitchens are switching to electric cooking options like induction cooktops.
2. Which businesses are witnessing the most increase in sales of induction cooktops?
Demand has sharply increased, according to businesses including Stovekraft Ltd., Wonderchef Home Appliances Pvt Ltd, Hawkins Cookers, and TTK Prestige. Some companies have seen sales climb many times over usual levels.
3. What are the essential parts needed to make induction cooktops?
The printed circuit board (PCB), which regulates temperature and power, and the copper induction coil, which generates the electromagnetic field required for cooking, are the most important parts.
4. What makes supply shortfalls a worry for manufacturers?
Manufacturers depend on imported glass panels and electronic parts. Supply chains may find it difficult to keep up if demand is high since global sourcing and shipping delays can cause additional components to take one to two months to arrive.
5. Will the demand for induction cooktops continue to soar?
Executives in the industry think the rise might be short-lived. Although the current scenario may drive more people to embrace electric cooking appliances, demand may moderate if LPG supply increase and costs normalize.
Conclusion
The demand for induction cooktops and other electric cooking gadgets has suddenly increased in India due to recent LPG restrictions and price increases that have drastically altered customer behavior.
The strong reliance on imported electronic components, particularly PCBs, presents a difficulty for supply chains even when producers are increasing production to satisfy this demand.
Demand may eventually revert to normal levels if the LPG situation stabilizes. But the current change may also hasten Indian households’ long-term adoption of electric cooking alternatives.
Disclaimer: This article is for informational purposes only and is based on publicly available industry reports and market data.
