Stove Kraft Limited Approves Wholly-Owned Subsidiary and Joint Venture in China
Stove Kraft Limited, during a Board meeting held on May 25, 2026, gave in-principle approval for two major international expansions: the incorporation of a wholly-owned subsidiary (WOS) in China and entering into a joint venture agreement with a Chinese company.The approval details the company's planned expansion into the People's Republic of China, covering both the establishment of a fully controlled subsidiary and a strategic partnership aimed at manufacturing and trading specialized goods.
Wholly-Owned Subsidiary Incorporation
The company approved the incorporation of the WOS, tentatively named Stove Kraft Guangzhou Import Export Limited, or any other name approved by Chinese regulatory authorities. Stove Kraft Limited will hold 100% shareholding in the proposed entity.The planned subsidiary is intended for the trading of goods required by the Company from time to time. The subscription of shares in the WOS will be completed via cash consideration, securing 100% control for Stove Kraft Limited.
Key details regarding the proposed Wholly-Owned Subsidiary are presented below:
| Particulars | Details |
|---|---|
| Proposed Name | Stove Kraft Guangzhou Import Export Limited (or name approved by regulatory authorities in China) |
| Country of Incorporation | People's Republic of China |
| Purpose/Industry | Trading of goods required by the Company |
| Ownership Structure | 100% shareholding by Stove Kraft Limited |
| Consideration | Cash consideration |
Joint Venture Agreement
In addition to the WOS, the Board also gave approval for a Joint Venture (JV) Agreement with Ningbo Wochi New Materials Co.,Ltd., both established in the People's Republic of China.The purpose of this JV is the manufacture of triply sheets or circles for use in cookware, and other related products. The agreement is structured with a 50:50 shareholding between Stovekraft Guangzhou Import Export Limited (the WOS) and Ningbo Wochi New Materials Co.,Ltd.
The key provisions of the Joint Venture Agreement include equal rights for both Stove Kraft Limited and its JV Partner regarding the appointment or change of nominees on the Board of Directors. Furthermore, the agreement stipulates that any change in the capital structure must be jointly approved by both parties, and both shareholders hold a first right of share subscription in case of future share issuance, in equal proportions.
Details of the Joint Venture Agreement are summarized in the table below:
| Feature | Details |
|---|---|
| JV Partners | Stovekraft Guangzhou Import Export Limited (WOS) and Ningbo Wochi New Materials Co.,Ltd. |
| Geographic Location | People's Republic of China |
| Purpose | Manufacture of triply sheets / circles for cookware and related products |
| Shareholding Ratio | 50:50 |
| Director Rights | Equal authority to appoint/change nominees on the Board |
| Capital Structure Change | Requires joint approval from both parties |
STOVEKRAFT Stock Price Movement
On Monday, Stove Kraft Limited shares slipped by 0.73%, closing at ₹554.00 as the stock settled for the session. The equity saw a trading volume of 91,177 shares during the period.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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