On September 19, 2024, Whirlpool of India Limited announced its decision to acquire an additional 9.56% stake in its subsidiary, Elica PB Whirlpool Kitchen Appliances Private Limited. Following the completion of this acquisition, Whirlpool will hold approximately 96.81% of the subsidiary’s issued and paid-up share capital.

Key Details of the Acquisition

Elica PB Whirlpool, incorporated on April 16, 2010, specializes in the manufacturing and distribution of kitchen appliances, including hoods, hobs, built-in ovens, refrigerators, microwave ovens, dishwashers, and more. As of March 31, 2024, the subsidiary reported a turnover of INR 498 Crores with a paid-up share capital of INR 4.83 Crores.

The acquisition falls under the purview of related party transactions, as defined by the Securities and Exchange Board of India (SEBI) regulations. However, it has been confirmed that the promoter group does not hold any direct interest in the subsidiary, ensuring that the transaction has been conducted at arm's length.

Strategic Alignment

This investment is in line with Whirlpool's long-term growth strategy, particularly in the cooking and built-in appliances market. The company aims to leverage this increased stake to explore further growth opportunities within the industry.

Transaction Overview

Consideration: The acquisition is being conducted as a cash transaction, with Whirlpool set to pay INR 167 Crores for the additional shares.

Completion Timeline: The acquisition is expected to be finalized within September 2024.

Regulatory Approvals: No governmental or regulatory approvals are required for this transaction.

Future Outlook

With this acquisition, Whirlpool strengthens its control over Elica PB Whirlpool, which primarily operates in India and exports to Nepal. The subsidiary has shown consistent growth over the last three years, with turnover figures reflecting steady progress: INR 375 Crores in FY 2022, INR 459 Crores in FY 2023, and INR 498 Crores in FY 2024.

In conjunction with this acquisition, a Shareholders’ Agreement will be established among Whirlpool, Elica S.p.A, and the CEO-led group to outline governance and management rights within the subsidiary, ensuring streamlined operations moving forward.

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