Whalesbook
Government Drives Shift to Electric Cooking
India's Department for Promotion of Industry and Internal Trade (DPIIT) has directed major domestic electronics makers to sharply increase production of commercial induction cooktops. The push comes amid rising geopolitical tensions in West Asia, fueling fears of Liquefied Petroleum Gas (LPG) supply disruptions and price hikes. This marks a wider strategy to shift from gas to electric cooking, boosting national energy security and cutting reliance on imported fuels. Demand for commercial induction cooktops has reportedly jumped two to three times in the last month.
Supply Chain Bottlenecks Emerge
Companies like Havells India, Epack Durable, and TTK Prestige are ready to ramp up. However, significant supply chain snags lie ahead. Around 40% of essential components, including crystalline glass and printed circuit boards (PCBs), are imported, mainly from China. This has pushed lead times for these parts from 25-30 days to 40-45 days, hindering rapid production increases. Industry groups are asking the government for help, like temporary waivers on mandatory Bureau of Indian Standards (BIS) certification for certain imported parts.
Major Players and Market Outlook
Havells India, a major Fast-Moving Electrical Goods (FMEG) firm, focuses on 'Make in India,' producing about 90% of its goods in-house across 15 sites. The company has a market capitalization of ₹82,616 crore and a TTM P/E of roughly 54.45. Epack Durable, an appliance Original Design Manufacturer (ODM), plans to double capacity by FY27. However, it reported a net loss of ₹223 crore in Q2 FY26, even as it expanded into induction cooktops. Epack's market cap is around ₹2,334.60 crore with a P/E of about 44.03. TTK Prestige, India's largest kitchenware maker, is a leader in cooktops and offers full induction solutions. It has a market cap of ₹6,669.50 crore and a TTM P/E near 48.59. The overall Indian Consumer Electronics and Appliances market is large, valued at USD 86.08 billion in 2024 and expected to grow strongly due to rising incomes and manufacturing support.
Geopolitics and Evolving Regulations
The West Asia conflict, pushing crude oil over $100 per barrel, is a key driver for domestic induction cooktop output. Global energy flows and supply chains are strained. India relies heavily on imports, sourcing about 88% of its crude oil and 60% of its LPG, with nearly 90% of LPG passing through the threatened Strait of Hormuz. This reliance sharpens the focus on electric cooking. Meanwhile, India's electronics regulations are changing. The Bureau of Indian Standards (BIS) is tightening safety norms, moving to IS/IEC 62368-1:2023 for electronics by May 2026. The government may also ease some import rules temporarily to boost local manufacturing. Programs like the Production Linked Incentive (PLI) scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) aim to strengthen the electronics sector.
Risks and Costs in the Transition
Despite government backing and market growth potential, major risks remain. Heavy reliance on imported parts, especially from China, poses a significant long-term challenge. While electric cooking offers cost savings – potentially 60% cheaper to run than LPG for commercial users with a three-year payback for industrial kitchens – upfront costs are a hurdle. Epack Durable's recent net loss and slower sales growth at TTK Prestige point to sector competition and margin pressures. The need to import finished goods to meet immediate demand also shows local capacity is still insufficient. Analyst views on TTK Prestige are mixed, with JM Financial and ICICI Securities rating it 'BUY', while HDFC Securities rates it 'REDUCE'.