Whirlpool Corp is set to divest a 31% stake in its Indian subsidiary as part of a global restructuring strategy following a staggering $1.5 billion loss. Major Indian players, including Reliance Retail and Havells India, along with buyout funds such as EQT and Bain Capital, are vying for this stake, according to a report by the Economic Times. The company aims to raise between $550 million and $600 million from this transaction.
Reliance Retail and Havells India are in direct competition with these international financial sponsors to secure a controlling interest in Whirlpool of India, which is the local entity of the Michigan-based firm that once held the title of the world’s largest appliance maker by sales. Following an initial screening process, EQT and Bain Capital are also in the mix of potential investors.
The ongoing plan by Whirlpool Corp involves selling a significant share of its Indian operations, which account for 85% of its revenue in Asia. The firm intends to maintain a 20% equity stake in this subsidiary, with the investment managed through Whirlpool Mauritius Ltd. This sale is a continuation of a broader restructuring initiative initiated in the U.S. in 2022, following substantial losses in its KitchenAid and Maytag product lines.
As part of its strategy, Whirlpool has already restructured operations across various Asian markets and parts of Europe while also aiming to reduce costs and workforce. The company is shifting focus towards smaller home appliances, including items like blenders and coffee makers. Whirlpool has expressed its intention to secure net cash proceeds of $550 million to $600 million from this deal.
Additionally, the company plans to make an open offer for an extra 26% stake from public shareholders. If fully subscribed, new investors could control approximately 57% of Whirlpool of India.
Original Source: https://www.india.com/business/mukesh-ambanis-reliance-joins-big-race-to-acquire-on-of-worlds-largest-appliance-maker-whirlpool-corp-stake-will-compete-with-major-players-like-havells-india-7895918/
Category: Business,Havells India,Mukesh Ambani,Mukesh Ambani Reliance Industries,Reliance Industries,Reliance Retail,Whirlpool Corp
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Publish Date: 2025-06-20 16:03:00
