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Time of India
29-04-2025
- Business
- Time of India
Advent, Bain, TPG, others drawn to Whirlpool India
Advent International, Bain Capital, TPG, EQT, Carlyle and KKR are among private equity funds that have been sounded out on buying into Whirlpool's India business as the US parent looks to pare its stake in the listed subsidiary, said people aware of the matter. Whirlpool Corp. is looking to sell a 31 per cent stake in Whirlpool of India Ltd , which generates 85 per cent of its Asia revenue, while retaining a 20 per cent holding, they said. It's looking to raise net cash proceeds of USD 550-600 million (Rs 4,684-5,110 crore) from the transaction. A formal stake sale process was launched earlier this month by the company's advisor Goldman Sachs. The executives said the deal could involve two funds jointly acquiring the stake, since Whirlpool Corp. has indicated it wants to remain the largest shareholder in the Indian arm. An entity getting a stake of 26 per cent or more would also trigger an open offer. However, most of the buyout funds are keen on getting a controlling stake. Talks are in the initial stage with management meetings just kicking off. Many of the funds have started the process of roping in industry advisors. Several PE funds that are in the fray for a stake in Haier India will also be keen to evaluate the Whirlpool option. TPG, Warburg Pincus, Goldman Sachs and GIC of Singapore are in that race, along with the family offices of leading Indian industrialists, ET reported on Monday. PE funds have previously backed homegrown consumer appliance brands. Advent took control of CG Consumer along with Temasek and made a successful exit through the markets. They still are the controlling shareholders of Eureka Forbes , which was acquired from the cash-strapped SP Group. Whirlpool India stocks fell after the parent announced the decision to reduce its holding to a minority stake on January 30 — to a 52-week low of Rs 899 on March 3 from Rs 1,577 on January 29. It closed at Rs 1,199.35 on Monday on the BSE for a market value of Rs 15,216.4 crore. The parent had sold a 24.7 per cent stake in the Indian unit in February 2024 through block deals for Rs 4,039 crore. The buyers had included SBI Mutual Fund, Aditya Birla Sunlife Mutual Fund, and one foreign institutional investor Societe Generale. Among the first MNC electronic brands to enter India in late 1980s, Whirlpool hasn't been able to scale up as much as rivals LG, Samsung and Haier, which entered much later, or even homegrown brands such as Voltas and Havells-owned Lloyd. 'Whirlpool Corp. has informed them they want the Indian entity to carve out its own future without much interference and hence reducing their stake to a minority,' a senior industry executive said. 'This makes it interesting for private equity funds to take control, build the business, which has been lagging compared to its peers like LG and Samsung, and increase its valuation.' The US company's chief financial and administrative officer James W Peters told analysts on Thursday night that the India transaction has 'generated significant interest from large third-party investors'. He said the company expects cash generated by the transaction in the second half of 2025. The parent intends to repay or refinance debt with this money as it had done the last time. Whirlpool Corp. didn't respond to queries. Carlyle, Advent International, TPG, EQT Group and KKR declined to comment. The US parent had earlier said the reduction of its shareholding will result in 'increased autonomy' at the Indian unit, allow it to focus on accelerated growth, and utilise its well-funded business to invest further. Peters said in February that Whirlpool is not looking for a 'strategic buyer' for its shares in the Indian unit. 'A strategic transaction with another player would not make sense at this time because it would… not be as value-creating as it is for us to provide the brand and the technology over the long term,' he had said, adding that a deal would free up Indian management. 'This will put decision-making completely in their hands without the oversight of Whirlpool that has to balance the needs of US shareholders and Indian shareholders.' The company clocked sales of Rs 6,332 crore and net profit of Rs 167 crore in FY24. In the nine months ended December 2024, revenue from operations rose 17 per cent to Rs 5,530 crore from the year earlier. LG India posted FY24 sales of Rs 21,557 crore and net profit of Rs 1,511 crore. Voltas posted sales of Rs 8,687 crore and net profit of Rs 604 crore in the same period. In the March quarter, Asia accounted for 7.4 per cent of Whirlpool Corp.'s global sales of USD 3.6 billion and 9 per cent of global ebit of USD 214 million. 'With the parent planning to sell 31 per cent stake in the company, there is a possibility of multiple scenarios which may or may not be favourable for minority shareholders,' said Aniruddha Joshi of ICICI Securities.
Economic Times
29-04-2025
- Business
- Economic Times
Advent, Bain, TPG, others drawn to Whirlpool India
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Advent International, Bain Capital, TPG, EQT, Carlyle and KKR are among private equity funds that have been sounded out on buying into Whirlpool's India business as the US parent looks to pare its stake in the listed subsidiary, said people aware of the Corp. is looking to sell a 31% stake in Whirlpool of India Ltd , which generates 85% of its Asia revenue, while retaining a 20% holding, they said. It's looking to raise net cash proceeds of $550-600 million (Rs 4,684-5,110 crore) from the transaction. A formal stake sale process was launched earlier this month by the company's advisor Goldman executives said the deal could involve two funds jointly acquiring the stake, since Whirlpool Corp. has indicated it wants to remain the largest shareholder in the Indian arm. An entity getting a stake of 26% or more would also trigger an open offer. However, most of the buyout funds are keen on getting a controlling are in the initial stage with management meetings just kicking off. Many of the funds have started the process of roping in industry PE funds that are in the fray for a stake in Haier India will also be keen to evaluate the Whirlpool option. TPG, Warburg Pincus, Goldman Sachs and GIC of Singapore are in that race, along with the family offices of leading Indian industrialists, ET reported on funds have previously backed homegrown consumer appliance brands. Advent took control of CG Consumer along with Temasek and made a successful exit through the markets. They still are the controlling shareholders of Eureka Forbes , which was acquired from the cash-strapped SP India stocks fell after the parent announced the decision to reduce its holding to a minority stake on January 30 — to a 52-week low of Rs 899 on March 3 from Rs 1,577 on January 29. It closed at Rs 1,199.35 on Monday on the BSE for a market value of Rs 15,216.4 parent had sold a 24.7% stake in the Indian unit in February 2024 through block deals for Rs 4,039 crore. The buyers had included SBI Mutual Fund, Aditya Birla Sunlife Mutual Fund, and one foreign institutional investor Societe the first MNC electronic brands to enter India in late 1980s, Whirlpool hasn't been able to scale up as much as rivals LG, Samsung and Haier, which entered much later, or even homegrown brands such as Voltas and Havells-owned Lloyd.'Whirlpool Corp. has informed them they want the Indian entity to carve out its own future without much interference and hence reducing their stake to a minority,' a senior industry executive said. 'This makes it interesting for private equity funds to take control, build the business, which has been lagging compared to its peers like LG and Samsung, and increase its valuation.'The US company's chief financial and administrative officer James W Peters told analysts on Thursday night that the India transaction has 'generated significant interest from large third-party investors'. He said the company expects cash generated by the transaction in the second half of 2025. The parent intends to repay or refinance debt with this money as it had done the last Corp. didn't respond to queries. Carlyle, Advent International, TPG, EQT Group and KKR declined to US parent had earlier said the reduction of its shareholding will result in 'increased autonomy' at the Indian unit, allow it to focus on accelerated growth, and utilise its well-funded business to invest said in February that Whirlpool is not looking for a 'strategic buyer' for its shares in the Indian unit.'A strategic transaction with another player would not make sense at this time because it would… not be as value-creating as it is for us to provide the brand and the technology over the long term,' he had said, adding that a deal would free up Indian management. 'This will put decision-making completely in their hands without the oversight of Whirlpool that has to balance the needs of US shareholders and Indian shareholders.'The company clocked sales of Rs 6,332 crore and net profit of Rs 167 crore in FY24. In the nine months ended December 2024, revenue from operations rose 17% to Rs 5,530 crore from the year earlier. LG India posted FY24 sales of Rs 21,557 crore and net profit of Rs 1,511 crore. Voltas posted sales of Rs 8,687 crore and net profit of Rs 604 crore in the same the March quarter, Asia accounted for 7.4% of Whirlpool Corp.'s global sales of $3.6 billion and 9% of global ebit of $214 million.'With the parent planning to sell 31% stake in the company, there is a possibility of multiple scenarios which may or may not be favourable for minority shareholders,' said Aniruddha Joshi of ICICI Securities.
Time of India
29-04-2025
- Business
- Time of India
Advent, Bain, TPG, others drawn to Whirlpool India
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Advent International, Bain Capital, TPG, EQT, Carlyle and KKR are among private equity funds that have been sounded out on buying into Whirlpool's India business as the US parent looks to pare its stake in the listed subsidiary, said people aware of the Corp. is looking to sell a 31% stake in Whirlpool of India Ltd , which generates 85% of its Asia revenue, while retaining a 20% holding, they said. It's looking to raise net cash proceeds of $550-600 million (Rs 4,684-5,110 crore) from the transaction. A formal stake sale process was launched earlier this month by the company's advisor Goldman executives said the deal could involve two funds jointly acquiring the stake, since Whirlpool Corp. has indicated it wants to remain the largest shareholder in the Indian arm. An entity getting a stake of 26% or more would also trigger an open offer. However, most of the buyout funds are keen on getting a controlling are in the initial stage with management meetings just kicking off. Many of the funds have started the process of roping in industry PE funds that are in the fray for a stake in Haier India will also be keen to evaluate the Whirlpool option. TPG, Warburg Pincus, Goldman Sachs and GIC of Singapore are in that race, along with the family offices of leading Indian industrialists, ET reported on funds have previously backed homegrown consumer appliance brands. Advent took control of CG Consumer along with Temasek and made a successful exit through the markets. They still are the controlling shareholders of Eureka Forbes , which was acquired from the cash-strapped SP India stocks fell after the parent announced the decision to reduce its holding to a minority stake on January 30 — to a 52-week low of Rs 899 on March 3 from Rs 1,577 on January 29. It closed at Rs 1,199.35 on Monday on the BSE for a market value of Rs 15,216.4 parent had sold a 24.7% stake in the Indian unit in February 2024 through block deals for Rs 4,039 crore. The buyers had included SBI Mutual Fund, Aditya Birla Sunlife Mutual Fund, and one foreign institutional investor Societe the first MNC electronic brands to enter India in late 1980s, Whirlpool hasn't been able to scale up as much as rivals LG, Samsung and Haier, which entered much later, or even homegrown brands such as Voltas and Havells-owned Lloyd.'Whirlpool Corp. has informed them they want the Indian entity to carve out its own future without much interference and hence reducing their stake to a minority,' a senior industry executive said. 'This makes it interesting for private equity funds to take control, build the business, which has been lagging compared to its peers like LG and Samsung, and increase its valuation.'The US company's chief financial and administrative officer James W Peters told analysts on Thursday night that the India transaction has 'generated significant interest from large third-party investors'. He said the company expects cash generated by the transaction in the second half of 2025. The parent intends to repay or refinance debt with this money as it had done the last Corp. didn't respond to queries. Carlyle, Advent International, TPG, EQT Group and KKR declined to US parent had earlier said the reduction of its shareholding will result in 'increased autonomy' at the Indian unit, allow it to focus on accelerated growth, and utilise its well-funded business to invest said in February that Whirlpool is not looking for a 'strategic buyer' for its shares in the Indian unit.'A strategic transaction with another player would not make sense at this time because it would… not be as value-creating as it is for us to provide the brand and the technology over the long term,' he had said, adding that a deal would free up Indian management. 'This will put decision-making completely in their hands without the oversight of Whirlpool that has to balance the needs of US shareholders and Indian shareholders.'The company clocked sales of Rs 6,332 crore and net profit of Rs 167 crore in FY24. In the nine months ended December 2024, revenue from operations rose 17% to Rs 5,530 crore from the year earlier. LG India posted FY24 sales of Rs 21,557 crore and net profit of Rs 1,511 crore. Voltas posted sales of Rs 8,687 crore and net profit of Rs 604 crore in the same the March quarter, Asia accounted for 7.4% of Whirlpool Corp.'s global sales of $3.6 billion and 9% of global ebit of $214 million.'With the parent planning to sell 31% stake in the company, there is a possibility of multiple scenarios which may or may not be favourable for minority shareholders,' said Aniruddha Joshi of ICICI Securities.
Business Mayor
28-04-2025
- Business
- Business Mayor
After Sunil Mittal, Mukesh Ambani's Reliance aims for Haier India stake
ET was first to report on December 25 that Mittal had formed a consortium with Warburg Pincus. In this battle of billionaires, the other groupings include TPG and the Burman family of Dabur; Goldman Sachs and the Amit Jatia family; and GIC of Singapore with BK Goenka of Welspun, after initially joining forces with Uday Kotak ( yes GIC) The combine of the family office of Puneet Dalmia of the Dalmia Bharat Group and Bain Capital have opted out. Chinese companies are now more amenable to conditions requiring stake dilution in favour of Indian entities if they want to expand in the country following Donald Trump's tariff blitz. With that threatening to price their products out of the US market, Chinese companies are eager to gain ground in India. Reliance entered the race after non-binding offers were made in the beginning of the year. Its advisors have directly approached Haier's headquarters in Qingdao, according to people in the know. Mittal too had gone to China a few weeks ago to meet the Haier top management, two industry executives said. Read More UK may need new gas-fired power stations to decarbonise grid It's understood that the Reliance retail unit will be the vehicle for the potential acquisition, said the people cited. Reliance is keen on going solo, unlike the others, as of now, they said. It's been building its own-brand business in electronics with licensed labels such as BPL and Kelvinator. Reconnect and Wyzr, brands that Reliance founded, have met with limited success. With most Indian companies and private equity firms making clear they are unlikely to remain junior partners in any alliance, the Chinese company is exploring the dilution of 45-48% equity to a local partner with another 3-6% set aside for Indian employees and local distributors, while retaining the rest. The final structure is expected to evolve in the next few weeks, added the people cited above. 'Reliance was nowhere in the initial list of suitors who had placed a non-binding bid for the Haier India stake,' one of them said. 'They entered the race recently and have directly reached Haier headquarters. They are very keen since they want a larger play in their own brand space in electronics like they are doing in FMCG with Campa Cola.' Reliance and Haier didn't respond to queries. Third & Growing Haier, which sells refrigerators, washing machines, televisions and air-conditioners in India, posted sales of Rs 8,900 crore in calendar 2024, up 33% from 2023, when it started local operations. It's targeting Rs 11,500 crore sales in calendar 2025. Haier has been keen to strike an equity alliance with a prominent Indian business group so that it can receive prompt approvals for its ambitious plans to expand the business in the country. Apart from the South Korean companies, it competes with Whirlpool, Havells-owned Lloyd, Godrej Appliances and Voltas Beko in India. Since tensions rose between the two countries, India has been going slow on most investments from China under Press Note 3 norms, which mandate government clearance instead of automatic approval for countries that share a border with the country. The move has hit several Chinese investments, even though some joint venture proposals, mainly in components, have been cleared in recent months. Haier India had applied for Rs 1,000 crore foreign direct investment (FDI) in 2023 but hasn't yet received approval. Its plans include expansion of plants in Greater Noida and Pune, and setting up a third greenfield facility in the south, for which it's seeking land in Andhra Pradesh and Tamil Nadu. Capacities will be saturated at the Pune and Greater Noida plants in another two to three years, going by the current pace of growth. Industry watchers say the Haier transaction got delayed by a few weeks due to the US-China tariff war as well as mixed signals. Prime minister Narendra Modi has been talking about improving bilateral relationship but in a recent interaction commerce minister Piyush Goyal said India does not intend to encourage foreign direct investment (FDI) from China. On the other hand, government officials have recently indicated to industry that joint venture proposals with Chinese minority ownership will be cleared as long as such partnerships involve transfer of critical technology that will help India build its component ecosystem. The recent volatility in global equities has dampened several high-profile listing plans, including the Indian IPO of market leader LG Electronics. Reliance is said to have raised this point to negotiate discounted valuations. The LG Electronics IPO outcome is being studied closely by the Chinese company, said executives in the know. Merger markets was the first to report that Reliance had submitted an initial bid. 'There has been a change in Reliance's thinking about their China engagement,' said a veteran group watcher. 'There has been a realisation that without China its new energy business will find it difficult to scale up. The group has also tied up with Shien for fast fashion, a move that was unthinkable some years back.' Reliance Retail chief financial officer Dinesh Taluja told analysts on Friday that its own-brand business in electronics was up 30% on a year-on-year basis in FY25. The company sells these brands not only in its Reliance Digital stores but also through distribution channels. Taluja said the merchant base selling its own brands was up 60% in FY25 from the year before.
