Whirlpool India to increase stake in Elica PB India to 87% in $57m deal
Whirlpool of India Ltd. (Whirlpool India) has agreed to acquire an additional stake of around 38% in Elica PB India, a manufacturer of kitchen hoods and chimneys, for $57 million from its joint venture partner Elica S.p.A.
The deal will enable Whirlpool India to increase its stake to around 87% to make Elica PB India its majority-owned subsidiary.
Elica, which is an Italian designer and manufacturer of kitchen hoods, induction hobs, and boilers, had sold a stake of 49% in Elica PB India to Whirlpool India in 2018, thereby creating a joint venture.
Under the Whirlpool brand in India, Elica PB India has been manufacturing and distributing cooking and built-in appliances ever since it became a joint venture.
Vishal Bhola — Managing Director of Whirlpool India 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. 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.”
Elica PB India has a manufacturing unit in Pune, which features machinery, automated assembly lines, and equipment, which were imported from Italy.
Pralhad Bhutada — CEO and Director of Elica PB India said: “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.
“I am confident that with our continued relationship, we will offer consumers a more comprehensive range of innovative, premium cooking solutions for both brands.”