STRATEGIC

MANAGEMENT

Hawkins Cooker Ltd.

SUBMITTED TO: DR VIVEK SANE

ABHINAV KUMAR GIRI

Company Profile:

Hawkins Cookers Limited is a pressure cooker and cookware manufacturer based in India. The
company is headquartered in Mumbai, with production facilities in Thane, Hoshiarpur, and
Jaunpur.
The Bombay Stock Exchange trades the firm under the symbol HWKN. It has raised money
through "fixed deposits," which are high-interest term deposits provided by businesses rather than
banks.

Hawkins Mission Statement:

The Hawkins Mission: To supply high quality products and innovative solutions with an
exceptional level of customer service while constantly striving to maximize long-term
shareholder value for the business. Pleasing customers is the livelihood and the vocation. It is the
best way we have of fulfilling the expectations of shareholders, employees, vendors and other
associates. Hawkins single-minded determination to please customers drives the kind of people
we employ and promote, the investments we make and the results we produce.

Tagline of the Company:

Pleasing customers is a matter of who we are, of being true to our roots.

Products and Services Provided:

It manufactures under brand names of Hawkins, Futura, Contura, Hevibase, Big Boy, Miss Mary
and Ventura. Hawkins is one of the largest pressure cooker manufacturers in India and exports its
products to more than 65 countries.

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Hawkins Timeline:

1959:
Started in 1959 by a professional-manager-turned-entrepreneur when pressure cookers were
virtually unknown in India Hawkins Cookers was known as Pressure Cookers and Appliances.

1986:
The current name was given to the corporation in 1986. It was a leading cooker maker, with a 32
percent market share, competing against over 100 different cooker types from both the organised
and unorganised sectors. Hawkins offers a wide choice of pressure cookers, cooker accessories,
non-stick cookware, cuisinettes, and satilon cookware. In the domestic market, the company sells
its whole product line under the Hawkins brand, while exporting its products to the United States
under the Futura brand. It can be found in some of Europe's and America's most prestigious
department stores. Yugoslavia, Japan, Panama, Mexico, Finland, and the Netherlands are among
the company's export destinations.

1989:
In 1989 with the sale of cookers crossing the one crore mark it joined a select group of companies
which have sold more than one crore consumer durables. The company diversified by launching
blended spices specially formulated for pressure cooking.

1993:
In 1993, the company amalgamated with PCA Engineers, and its whole business and undertakings
were transferred to Hawkins. The company has introduced four new pressure cooker models to the
market: the 3.5 litre Contura, the 5.5 litre and 7 litre Miss Mary, and the 6 litre Hawkins Heavybase.
Cookware Sets in Satilon and Non-Sticks have been introduced by the company in the Cookware
category. Hawkins Non-stick Frying Pan (30 cm diameter) and Hawkins Non-stick Saute Pan (30
cm diameter) (3.25 litre Capacity).

1999-2000:
The company launched four new models of pressure cookers; 1.5 litre Hawkins Futura 3 litre
Futura Stainless Steel 5.5 litres and Hawkins Stainless Steel 10 litres Five new goods were
introduced in the cookware section, including an additional Futura Seta and a Hawkins Non-
Stick Set Futura Deep Fry Pan (medium) with 2 handles Futura Flat Tava 26 cm and Hawkins
Non-stick Flat Tava 26 cm.

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2000-2001:
The company's PBT was Rs.24.90 million, down 52 percent from the previous year. The reason
for this decrease is that the Central Excise Duty on pressure cookers was raised from 8% to 16%
with effect from March 2000. The company's profit after tax (PAT) was Rs.18.70 million, down
48 percent from the previous year. The company's exports increased by 11% this year over the
previous year. During the year, the business introduced three new pressure cooker models: the 18-
liter Hawkins, the 4-liter Futura, and the 8.5-liter Miss Mary. The firm has introduced six new
cookware items: 22cm diameter Futura Tawa 26cm diameter, 4.88mm thick Futura Tawa Futura
Deep Fry Pan (Small) Hawkins 1.5 ltr Nonstick Hawkins U and All-Purpose Pan.

Hawkins Business Model:

Hawkins Cookers Limited (“the Company” or “Hawkins”) is involved in the manufacturing &
marketing of pressure cookers & other cookware appliances. Hawkins is well known for its brand
& careful selection of materials. With best manufacturing practices and rigid quality controls, the
Company has been able to generate sales of over 72 million pressure cookers worldwide. Hawkins
is the leader in the pressure cooker market in India with a market share of 32.0%.
Hawkins offers 85 different pressure cooker models under 12 different categories. The pressure
cookers are marketed under the following brand names:

❖ Hawkins Classic
❖ Futura
❖ Miss Mary
❖ Contura
❖ Heavy base
❖ Big Boy

Core Competence of Hawkins:

❖ Global Market – Hawkins has a global presence and hence it helps in building the brand
reputation that the products are exported internationally. It sells nearly 72 million units of
pressure cooker annually across the globe which is a huge number.

❖ Brand Reputation and Awareness – Hawkins as mentioned above is present globally as

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 ❖ Quality products – Hawkins has been able to make its brand internationally because of
the fact that the quality of the products is high and they are durable in nature.

❖ Aptly priced for the customers – The brand has priced its products appropriately so that
it can be consumed by the middle and upper-income group. It has different variants of
packages priced according to the size of the pressure cooker such as 1 liter, 5 liters etc.

Strategy Shaft of Hawkins Cooker Ltd.

Hawkins is regarded as India's heritage brand since it has successfully integrated itself into the
cultural sphere of Indian households. The brands that have lasted the test of time are the ones you
look for. Consumers are always on the lookout for new things that will improve their lives.
Changing lifestyles also have a significant part in defining the product's relevance; it is both an
opportunity and a threat to the survival of companies. Hawkins, on the other hand, has always
demonstrated its relevance by adapting with the times. Its basket of products contains various
different products which have been introduced from time to time to keep the relevance of the brand.

Reason for Growth in the demand for Hawkins

❖ The trend towards better brands which follows from the “revolution of rising expectations.

❖ Hawkins’ long years of focus on better product design, better product quality and better
consumer. Industry analysis: The pressure cooker industry is growing at the rate of 10%
YOY basis.

The main competition is the TTK Prestige, which has the same 25% market share as Hawkins
in the pressure cooker segment. The market is mature, and urban markets are increasing at a
snail's pace. Hawkins' potential is in rural areas, where there is a lot of room for growth, as
well as in other kitchen appliances. Hawkins has raised capital through fixed deposits rather
than banks, which is a distinguishing trait. Hawkins Cookers Limited also provides
international marketing services. Hawkins has wonderfully seized the Indian market by
diversifying its penetration into every line of pressure cooker.

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 Conclusion:

One thing hopefully would have become quite clear about the management of Hawkins. Their first
priority is always the long-term sustainability of the business. They understand that they have a
valuable brand in Hawkins which they have built gradually and painfully over many decades. And
they are extremely loath to jeopardize that for any short-term advantages.

This explains why they have stuck to cookers and cookware when others have been diversifying
because of the slow growth in these categories. It is also demonstrated in the way they have dealt
with problems in the past. Management at Hawkins instinctively understand that they are the
stewards of a business which is growing stronger. They do not think in terms of quarterly results.
They understand that it is their obligation to pass on the business to the next generation in better
shape than they inherited. They are in effect playing an infinite game rather than a finite game.

I think we can reasonably say that Hawkins has a competitive advantage over its competitors. It is
demonstrated in their superior performance in terms of returns on capital. Their moat results from
a number of things including the quality of their products both in terms of design and effectiveness,
the Hawkins brand, the strength of their distribution etc. However, the most important component
of their moat is their management. Hawkins in my opinion will continue to grow at a reasonable
rate in the foreseeable future. There will be problems, just like in the past. But they will navigate
the problems with confidence and honesty. The business will be stronger and the moat deeper 10
years down the line.

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