Whirlpool extends stake in Elica PB to 87 percent


Whirlpool of India Limited, the leading home appliance manufacturer, has signed a share purchase agreement with a kitchen appliance manufacturer; Elica PB India will acquire an additional stake in the company for $ 57 million (approximately Rs 420 billion).

Whirlpool currently owns 49 percent of Elica PB India and the agreement will increase its stake to 87 percent, effectively making Elica a controlling subsidiary of the company. The transaction is expected to be completed by the end of September 2021. Thereafter, the annual financial statements of Elica PB India will be consolidated with Whirlpool.

Cooking and built-in appliances are under-penetrated categories and demand has now accelerated as consumers discover cooking as a passion and invest more in their kitchens. Covid-19 has made more and more consumers think about buying more home appliances.

Whirlpool sells laundry, air conditioning and refrigeration products. The company also has a small range of microwave ovens. Since the beginning of the joint venture, Elica PB India also brought in its strong distribution network and made whirlpool cooking products widely available in the market.

At the close of Tuesday market, Whirlpool of India Limited shares were trading at 2267.45 rupees, up 1.18 percent, or rupees 26.40 per share, versus a 0.67 percent decline in the benchmark. The company’s 52-week high was recorded at Rs 2,777, while its 52-week low is Rs 1,970 on BSE.

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