Stove Kraft Limited entered into an agreement to acquire Business and IPR Rights of SKAVA Electric Private Ltd from SKAVA Electric Private Ltd for INR 40 million.

Stove Kraft Limited (BSE:543260) entered into an agreement to acquire Business and IPR Rights of SKAVA Electric Private Ltd from SKAVA Electric Private Ltd for INR 40 million on January 2, 2022. Stove Kraft plans to incur additional capex of INR 50 million over next 3-4 years on moulds and machines to increase the production capacity. Business of SKAVA Electric Private Ltd reported revenue of INR 100 million in FY21.

As part of this acquisition, founder of SKAVA will be appointed as a business head of this segment and will be associated with Stove Kraft for a period of at-least 4 years to ensure smooth transition as well as support future business growth. Stove Kraft will also absorb the design, operation & manufacturing team from SKAVA Electric Private Ltd. The transaction is subject to approval by regulatory board/committee and consummation of due diligence investigation.