Whirlpool India holds 87% stake in Elica PB with a recent investment of $57 million

After the deal is concluded, Elica PB India will become a majority-owned subsidiary of Whirlpool in India.

Consumer durables maker Whirlpool India Limited announced that it has entered into a share purchase agreement with Elica S.p.A, an Italian manufacturing company, to acquire an additional 38 per cent stake in its Indian venture Elica PB India for $57 million. Prior to this, Whirlpool of India had acquired a 49% equity interest in Elica PB India in 2018. 

The transaction which is set to conclude by the end of September will bring Whirlpool’s total equity ownership in Elica PB India to 87 per cent. After the completion of the deal, Elica PB India will become a majority-owned subsidiary of Whirlpool India, a statement released by Whirlpool of India said. 

Expressing his delight over the new development, the Managing Director of Whirlpool of India Vishal Bhola said, “We are very excited about this transaction and it is aligned with our ambition to accelerate profitable growth in India.” 

“Cooking and built-in appliances are under-penetrated categories and the demand has now accelerated with consumers picking up cooking as a passion and investing more in their kitchens,” he further noted on acquiring Elica PB India, which manufactures kitchen equipment and appliances.

“Our consumers have always been at the heart of our business and now with both Elica and Whirlpool brands, we are in an even better position to improve life at home for them,” Bhola said. Whirlpool of India is targeting to use this newfound opportunity to advance further into the kitchen appliance market in the country.

The regulatory statement, which was submitted to the exchanges also noted Elica PB India’s stance on the acquisition. “Over the last decade, Elica PB India has built a very strong product portfolio and distribution network in India, which it has been harnessing for the last three years to build both the Elica and Whirlpool brands in the cooking category,” Pralhad Bhutada, chief executive officer and director of Elica PB India said, asserting that this acquisition will be beneficial for both the companies moving ahead.

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