Home appliance maker Whirlpool of India Ltd will acquire an additional stake in kitchen appliance maker Elica PB India, moving its ownership from the current 49% to 87% for $ 57 million, according to a press release from the companies.
Elica PB India will become a majority-owned subsidiary of Whirlpool India NSE with 2.32% and its financial statements will be consolidated within Whirlpool India.
The statement says the agreement is expected to expire at the end of September 2021. Both organizations will continue to run their operations as they currently do. Whirlpool India initially acquired a 49% stake in Elica PB India in 2018.
Vishal Bhola, Managing Director of Whirlpool India, said the deal is in line with the company's ambition to accelerate profitable growth in India.
"Kitchen and built-in appliances are low penetration categories and the demand has now accelerated and consumers are choosing to cook as a passion and invest more in their kitchens," he said.
Elica PB India has a manufacturing unit in Pune and sells range hoods, stoves, and cookers. Whirlpool is one of the leading brands in the washing machine and refrigerator sector in India.
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