Whirlpool India to acquire 49% stake in Elica PB

Whirlpool India on Saturday said its board has approved a proposal to enter into a strategic joint venture with Elica and acquire 49% equity in Elica PB India Pvt.

In a statement issued, the company stated that, "In line with the strategic priority for Whirlpool India to expand the cooking and built-in appliance portfolio, the board of Whirlpool India approved a proposal to enter into a strategic joint venture with Elica and acquire 49% equity in Elica PB India Pvt Ltd."

As part of the joint venture, Elica PB India will manufacture and distribute cooking and built-in appliances under the Whirlpool brand in India.

Elica PB India is a subsidiary of Elica SpA Italy and has been operating in India since 2010. The parties expect the transaction to close in the second half of 2018.

However, the statement did not disclose financial details of the transaction. The parties expect the transaction to close in the second half of 2018.

Commenting on the development, Whirlpool India Managing Director Sunil D’Souza said the cooking and built-in appliance space is poised for very strong growth in India based on increasing consumer demand. 

"Whirlpool aims to expand its portfolio of innovative products with Elica’s impressive capabilities in consumer insights, design, and manufacturing and also broaden its distribution. This association will bring outstanding product innovation and provide more options to the kitchens of our consumers," said D’Souza.

Speaking about this joint venture, Elica PB India CEO Pralhad Bhutada said Elica PB has built a very strong product portfolio and distribution network for the Elica brand.

"With the addition of Whirlpool brand’s products, we will be offering two very appealing  appliance brands to the Indian consumers and we are confident that we can take both these brands to greater heights," he said.

Whirlpool of India Limited is part of $21.25 billion revenues Michigan-headquartered US multinational Whirlpool Corporation, which is manufacturer and marketer of home appliances.

Whirlpool entered India in the late 1980s as part of its global expansion strategy and is headquartered in Gurugram. Presently the company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune.