Reliance Retail and appliance maker Havells India have entered the race to buy a majority stake in Whirlpool of India Ltd, the listed subsidiary that contributes the bulk of Whirlpool Corporation’s Asian revenue, according to a report by The Economic Times. The two strategic suitors are up against global buyout specialists EQT and Bain Capital, while TPG Capital has begun due-‘diligence.
What the US parent company wants
Michiga-‘based Whirlpool Corp is marketing roughly 31 per cent of its Indian arm while planning to keep around 20 per cent through its vehicle Whirlpool Mauritius Ltd. The sale forms part of a sweeping global overhaul announced at the end of 2022, after the company reported a $1.5 billion loss. Since then, Whirlpool has pruned operations in parts of Asia and Europe, trimmed headcount, and shifted focus to smaller countertop appliances such as blenders and coffee makers.
Goldman Sachs launched a formal auction in April, and the parent company hopes to raise net proceeds of $550-600 million (₹4,684 crore-₹5,110 crore). As the deal involves a change of control, Indian takeover rules will trigger an open offer for a further 26 per cent from public shareholders. If fully accepted, the acquirer could emerge with a 57 per cent holding.
A valuation that keeps moving
Public investors currently own 49 per cent of Whirlpool of India. In February 2024, the parent cut its stake by 24.7 per cent via block trades worth ₹4,039 crore, selling to domestic mutual funds such as SBI MF and Aditya Birla Sun Life MF and to Societe Generale.
After the plan to become a minority shareholder was announced on January 30, the stock slid from ₹1,577 to a 52-week low of ₹899 on March 3. It has since rebounded to ₹1,329, valuing the company at about ₹16,861 crore. At that level, a 57 per cent stake would cost roughly ₹9,610 crore, the news report said.
Margin worries cloud enthusiasm
“There are concerns around the low-margin business of Whirlpool India, which has a dominant play only in entry-level products and has missed the premium play, unlike competitors such as LG, Samsung or Haier,” said an industry executive, as quoted by the news report. Another sticking point is future royalty payments to the parent.
Next steps in the auction
Whirlpool Corporation’s chief financial and administrative officer James W Peters told analysts last month that the India process has “generated significant interest from large third-party investors”. He expects cash to arrive in the second half of 2025 and plans to deploy it to repay or refinance debt, as the company did after previous divestments, The Economic Times report mentioned.
Bankers caution that if final bids fall short of expectations, the parent company could once again tap the open market — a quicker route that sidesteps thorny royalty negotiations. For now, shortlisted strategics and financiers are poring over data rooms, testing assumptions about margins, brand strength in smaller towns and the scope to move Whirlpool up the price ladder, the news report said.
