V-Guard to acquire kitchen appliances manufacturer Sunflame Enterprises

V-Guard Industries has agreed to acquire Sunflame Enterprises Private Ltd. (SEPL), an Indian kitchen appliances manufacturer, for INR 660 crores.

According to the Indian consumer electrical and electronics major, the deal is part of its strategy for becoming a key player in the kitchen appliances segment in India.

Sunflame Enterprises’ product portfolio includes cooktops, pressure cookers, chimneys, mixer grinders, and small kitchen appliances.

The kitchen appliances manufacturer earned revenue of INR 349.8 crores in FY22.

KL Verma — Sunflame Enterprises Managing Director said: “We are proud of the Sunflame legacy, having won and retained the trust of our customers and partners for nearly four decades. Having started this journey in 1984, we have come a long way since then. V-Guard, a name synonymous with trust, is the right organization to take this legacy forward.

“We are confident that the Sunflame brand would scale even greater heights with V-Guard.”

V-Guard Industries, which plans to fund the acquisition through a combination of internal accruals and debt, said that Sunflame Enterprises gives it an ideal opportunity to scale up its kitchen appliances business while also releasing synergy benefits.

Mithun Chittilappilly — V-Guard Industries Managing Director said: “The proposed acquisition is a key milestone in V-Guard’s journey to have deeper engagement with its consumers by providing thoughtful products and experiences. Sunflame is an iconic brand etched in the memories of Indian households and is expected to provide significant thrust to V-Guard’s plans to become a leading Indian Kitchen Appliances player.

“We appreciate the trust reposed by SEPL’s Promoter family in us to take the Sunflame brand to greater heights.”

The deal is likely to close by mid of January 2023.