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Equity Research: Whirlpool Of India Limited
Whirlpool of India Ltd is an totally India-based producer of domestic home equipment. The Company is in general engaged in manufacturing and buying and selling of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small home equipment and caters to both domestic and worldwide markets. It provides services in the vicinity of product improvement, and procurement services to Whirlpool Corporation, The United States and other group businesses. The Company additionally offers Water Purifiers, Built-In Appliances and Induction cooktop. The Company gives add-ons for Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and Water Purifiers. It gives Surge Protector and Affresh Accessories. Its plants are positioned at Faridabad, Haryana; Rajangaon, Pune, and Thirubhuvanai Village, Puducherry.
Whirlpool of India Ltd is one of the leading Emerging Fortune 500 consumer durables Companies established in 1980 as Whirlpool Corporation, United States. The company initially started its operation in India by forming a joint venture with the TVS Group of India where it set up its first washing machine production factory. It later established itself in the refrigerator market after partnering with Kelvinator India Limited to form a subsidiary. All these were merged to become Whirlpool of India Limited.
Based in Gurugram, Whirlpool of India is one of the major appliance companies, with its specialization in home appliances such as refrigerators, washing machines, air conditioners kitchen appliances/purifiers. It also deals in product development and procurement for Whirlpool Corporation, USA, and its group concern. To diversify the organization’s business in cooking and built-in appliances, Whirlpool of India bought an 87% acquisition of KitchenAid.
Whirlpool of India operates three manufacturing units: Refrigerators, the product range under the Faridabad division of the washing machines namely the semi-automatic ones Frost-free and direct cool refrigerators under the Pune division, and the washing machines under the Puducherry division. The company also procure products which include air conditioners for production and microwave ovens, as a manufacturer and distributor to over thirty markets all over the world.
In Q4 FY24, Whirlpool Corporation, the promoter company, divested 24% of its stake in the Indian subsidiary. Despite this divestment, Whirlpool Corporation maintains a majority interest through a wholly-owned subsidiary. Foreign Institutional Investors (FII) increased their stake from 3.64% in Q3 FY24 to 6.48% in Q4 FY24, while Domestic Institutional Investors (DII) increased their stake from 12.63% to 33.68% during the same period. Notably, mutual fund holdings rose significantly from 11.12% to 31.14%, and insurance holdings from 1.46% to 2.40%.
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Management remains focused on new product launches, rural reach expansion, and cost optimization. Optimism prevails for a rebound in consumer sentiment, despite global uncertainties. Key appointments include Debopriyo Sengupta as Vice President of Human Resources and Amit Aggarwal as Head of Information Technology.
Today Whirlpool of India continues to occupy a strong position in the refrigerator and washing machine markets of the country, but during the period under consideration lost some market share due to increasing costs and competitors. The major strategic priorities target the further consolidation of the company’s position within the premium segment, improving the product line and the company’s pricing strategy.
The management anticipates improved full-year revenue growth compared to the first nine months of FY24. Strategic imperatives include product leadership, premiumization, supply chain resilience, enhanced sales execution, and industry-leading growth. The focus remains on strengthening the brand, expanding rural reach, and leveraging the SAARC markets for export growth. Potential risks include higher input costs, delays in product launches, increased competitive pressure, and further market share losses.
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