Whirlpool expands stake in Elica PB to 87 per cent

Home appliance major, Whirlpool of India Limited has entered into a share purchase agreement with kitchen appliance maker; Elica PB India to acquire an additional stake in the company for US$ 57 million (around Rs 420 crore). 

Whirlpool currently owns 49 per cent in Elica PB India and the agreement will bring the holding up to 87 per cent, effectively making Elica a majority-owned subsidiary of the company. The transaction is likely to be completed by the end of September 2021 after which Elica PB India’s financial statements will be consolidated with Whirlpool.   

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. Covid-19 has prompted more consumers to consider buying more household appliances.  

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

Towards market close on Tuesday, the stock of Whirlpool of India Limited was trading at Rs 2267.45, up by 1.18 per cent or Rs 26.40 per share, against a 0.67 per cent decline in the benchmark index. The 52-week high of the company was recorded at Rs 2,777 while its 52-week low is Rs 1,970 on BSE.