Germany-based Bosch is said to be contemplating a takeover of US white goods maker Whirlpool, a move which could bolster its India position in the appliances segment, industry experts said.
Media reports have indicated that Bosch is looking to make a multi-billion-dollar offer for Whirlpool, which is currently in discussion with advisers.
The potential deal has India implications since the Bosch group runs BSH Home Appliances in India, a company which manufactures and sells products under the Bosch, Siemens and Gaggenau brands. The company, an unlisted entity, is a subsidiary of BSH Hausegerate Gmbh, the appliances arm of the Bosch group and the largest appliance maker in Europe.
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Products sold by BSH Home Appliances in India include washing machines, refrigerators, dishwashers and small home appliances within the premium, mass premium and luxury segments. Whirlpool, apart from Korean companies LG and Samsung, are key competitors of BSH Home Appliances in India.
The company declined comment when contacted about the likely acquisition of Whirlpool and its impact on India. BSH Home Appliances also does not give a break-up of its India revenue in its global financial results. But the company has so far invested Rs 800 crore at its Sriperumbudur factory near Chennai with two lines of production, industry executives said. The company is also betting big on the India market, with its global management saying that it wishes to take sales in the country to Rs 5,000 crore in the next few years, industry sources said.
Whirlpool of India, on the other hand, reported FY24 net sales of Rs 6,830 crore, a year-on-year growth of 2.44%. Net profit for FY24 stood at Rs 224 crore, flat versus last year.
Shares of Whirlpool’s Indian subsidiary were up 10% intraday on Thursday on the BSE afters news of the likely global acquisition broke. The stock finally closed at Rs 1,990.70 apiece, up 8.37% versus the previous day’s close.
In February, parent Whirlpool Corporation trimmed its stake by 24% in its Indian unit for Rs 3,880 crore, bringing down its shareholding to 51% from 75% earlier. It had also reiterated its commitment to India despite the stake sale, saying that it was a significant marketplace from a growth perspective.
The Bosch group has also indicated this in recent analyst calls and press meets. In a virtual press meet in April, Rudolf Klotscher, global sales and services head of BSH Hausgerate GmBH, said India was the company’s “second-largest emerging market alongside Turkey” and was a “huge focus” area for the company.
Klotscher also said the company had reported “double-digit” growth in India in categories such as dishwashers, where it was the market leader.
Bosch’s likely global acquisition of Whirlpool may give it access to a larger market in India, sector experts said.
“Whirlpool is a bigger appliance brand in India and has a stronger recall in the marketplace,” said Arvind Singhal, chairman, Technopak, a Gurugram-based retail and management consultancy firm. “A potential global acquisition will mean that it could become a key part of the BSH portfolio, which includes names such as Bosch and Siemens,” Singhal said.
In recent media interactions, Saif Khan, MD & CEO of BSH Home Appliances India, said the firm was looking at newer products, greater localisation and aggressive distribution to drive growth.
The company was transforming its existing showrooms into new Bosch brand stores, starting with Chennai, he said. BSH Home Appliances has nearly 115 brand shops across India, in addition to thousands of touchpoints.
From: financialexpress
Financial News
