Hindware Group’s 5 years journey after demerger: Still waiting for unlocking value

From its presence in sanitaryware & packaging in 2011, over the years, the Hindware Group expanded to numerous consumer facing businesses like Faucets, Appliances, Plastic pipes & fittings, Fans, Kitchen fittings, Furniture etc. This obviously ushered in a mismatch of risk & return among different business verticals. So, management decided in FY 2018 to demerge B2C businesses into Hindware Home Innovation Limited (Earlier known as Somany Home innovation Limited or Resultant company) and keep manufacturing assets heavy businesses in AGI Greenpac Limited (Historically known as HSIL Limited or Demerged company). In a complete U-turn of the strategy based on which demerger was done, in FY 2022, manufacturing facilities for building products and consumer products were sold on slump sale basis to the resulting company. Currently, the group operates two listed companies post demerger and slump sale.

AGI Greenpac Limited (Historically known as HSIL Limited) is India’s leading Packaging Products Company that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures.

Hindware Home Innovation Limited (Earlier known as Somany Home innovation Limited) is recognised by its Brand Hindware, engaged in the Indian Consumer Appliances and Building Products segment. The company is involved in manufacturing, branding, marketing, sales & distribution, and service of various product categories. The company through its wholly owned subsidiary, Hindware Limited (Earlier known as Brilloca Limited) has a versatile range of best-in-class sanitaryware and faucets products with brands catering to a wide pricing spectrum, from luxury to mass.

Demerger to separate asset light business from manufacturing:

In 2018, pursuant to the composite scheme of arrangement, HSIL Limited (“HSIL” or “AGI”) now known as AGI Greenpac Limited demerged marketing & distribution of Consumer Products and Retail Divisions to Somany Home Innovation Limited (“SHIL” or “HHIL”) now known as Hindware Home Innovation Limited. Further, marketing and distribution of Building Products of HSIL Limited was demerged into Brilloca Limited (“Brilloca”) now known as Hindware Limited, a wholly owned subsidiary of SHIL.

Before demerger, AGI was engaged in four divisions:

• Building Product Division
• Consumer Product Division
• Retail Division
• Packaging Division