Latest news with #RelianceRetail
India.com
40 minutes ago
- Business
- India.com
Mukesh Ambani's joins BIG race to acquire on of world's largest…, Reliance will compete with major players like…
Whirlpool Corp is likely to divest a 31% stake in its Indian arm over global restructuring after a $1.5 billion loss. Indian big players like Reliance Retail, Havells India, and buyout funds like EQT and Bain Capital are interested in this share, as reported by Economic Times. Whirlpool wants to raise $550-600 million. Reliance Retail and consumer appliances major Havells India will compete with other bulge-bracket buyout funds to acquire a controlling interest in Whirlpool of India. It is the locally listed firm of the Michigan-based company that was once the world's largest appliance maker by sales. Other financial sponsors EQT and Bain Capital are also shortlisted after the initial round of screening. Whirlpool Corp Divesting Plan Whirlpool Corp is looking to sell 31% stake in Whirlpool of India, which generates 85% of its Asia revenue. They will retain a 20% equity stake in the company. The equity in India is held through Whirlpool Mauritius Ltd. This exercise is part of a global reorganisation started by the company in 2022 in the US after its KitchenAid and Maytag products reported a $1.5 billion loss. It has already reshaped its global portfolio operations in other Asian markets and also in some parts of Europe. Whirlpool Corp is also trying to cut costs and its workforce. Why Is Whirlpool Corp Divesting? The company is also focusing on selling smaller home appliances like blenders and coffee makers. The company reportedly said it is keen to raise net cash proceeds of $550-600 million (Rs 4,684-5,110 crore) from the transaction. They will also give an open offer for an additional 26% stake from public shareholders of the company. If it is fully subscribed to, the incoming investor may own around 57% of the company.
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Business Standard
4 hours ago
- Business
- Business Standard
Reliance, Havells in race to acquire majority control in Whirlpool India
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.
India.com
4 hours ago
- Business
- India.com
Mukesh Ambani and Isha Ambani make big move, Reliance Retail to sell ready-to-cook items with...
Mukesh Ambani and Isha Ambani make big move, Reliance Retail to sell ready-to-cook items with... Packaged spices and seasoning company ZOFF Foods has inked a strategic partnership with Reliance Retail and entered the ready-to-cook foods segment, the company said on Thursday. ZOFF Foods partners with Reliance Retail to enter the Rs 5,000 crore ready-to-cook market. Products to be available across 400+ Reliance stores and online platforms. The move targets evolving consumer needs and growing demand in the convenience food segment. It said its products will be available on Reliance Retail outlets as well as its own e-commerce platform and would be introduced on other e-commerce and q-commerce platforms. Akash Agrawalla, co-founder, ZOFF Foods, said that the products address 'evolving needs of today's home cooks'. He said the partnership with Reliance Retail would enable the brand to reach over 400 stores by next month. The Indian ready-to-cook meals' market size is estimated at Rs 5,000 crore, growing about 7-8% per annum. The category is seeing interest from both large companies–which are foraying into this space–as well as newer brands who are leveraging q-commerce and e-commerce for discoverability and reach.
Time of India
11 hours ago
- Business
- Time of India
Reliance & Havells enter PE party to snap up Whirlpool
Reliance Retail and the home-grown consumer appliances major Havells India would compete with several bulge-bracket buyout funds, multiple people told ET, to acquire a controlling interest in Whirlpool of India , the locally listed arm of the Michigan-based company that was once the world's largest appliance maker by sales. These two companies are competing with financial sponsors EQT and Bain Capital , who have also been shortlisted after the initial round of screening. TPG Capital is also among those initiating the due diligence, said the people mentioned above. Whirlpool Corp is looking to sell 31% stake in Whirlpool of India , which generates 85% of its Asia revenue, while retaining a 20% equity stake in the company. The equity in India is held through Whirlpool Mauritius Ltd. The monetisation exercise is part of a global reorganisation initiated at the end of 2022 when the company, synonymous in the US with its namesake brand as well as KitchenAid and Maytag products, posted a $1.5 billion loss. Live Events It has already reshaped its global portfolio pruning operations in key Asian markets and in pockets of Europe. Whirlpool Corp has also heightened efforts to cut costs and its workforce. The company is simultaneously focusing on selling smaller home appliances like blenders and coffee makers — to overhaul its more than century-old business — as consumers pull back on large purchases. The company said it is keen 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 in April by the company's advisor Goldman Sachs. The change of control transaction will also trigger an open offer for an additional 26% stake from public shareholders of the company. If fully subscribed to, the incoming investor could end up owning 57% of the company. Public shareholders own 49% of the company. ET in its edition dated April 29 had reported PE funds like Bain, Carlyle, KKR among others were evaluating the opportunity. The high valuations have seen some interest taper, added people in the know. Open Market Deal Last February, the parent sold a 24.7% stake in its Indian arm through block deals worth Rs 4,039 crore. The buyers had included five mutual funds such as SBI Mutual Fund and Aditya Birla Sunlife Mutual Fund, and one foreign institutional investor--Societe Generale. After the parent announced the decision to reduce its holding to a minority stake on January 30, the stock price in India fell to a 52-week low of Rs 899 on March 3 from the highs of Rs 1,577 on January 29. It closed at Rs 1,329/a piece on Thursday, down almost 3% from previous day's closing with a market capitalisation of Rs 16,861 crore. At current value, a 57% stake would translate to a Rs 9,610 crore ($1.13 billion) acquisition. Emails sent to Whirlpool Corp, Reliance Retail and Havells remained unanswered until the publication of this report. TPG, Bain, EQT declined to comment. Hot & Cold '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 who is part of the deal negotiations. Analysts believe if the US parent is not happy with the final offers on the table, it may once again divest through the open market route. Another bone of contention is believed to be the royalty payout to the parent in future. 'It's a low margin business and if the parent insists on hiking royalty then the pressures will be far more,' said one of the contenders who had evaluated the opportunity but chose not to pursue. Reliance, he added, wants a stronger brand play in consumer electronics after it found some success with its licensed labels BPL and Kelvinator to mirror its FMCG strategy where Campa Cola is giving stiff competition in the beverage segment. Reconnect and Wyzr, electronic brands that Reliance founded, have met with limited success. 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 Godrej. Strategic Choice Industry players believe Whirlpool still has a sizable brand equity, factories and good presence in smaller cities and towns through distributors. Like Reliance, Havells, too, wants a larger play in appliances such as refrigerators and washing machines which it is yet to achieve with its Lloyd brand. Lloyd is more popular in air-conditioners, where it is among the top four. The Whirlpool brand will add heft to the Havells portfolio. The Noida-based company enjoys leadership position in electrical goods such as wires, switches, and is a leading brand in fans and small appliances. Reliance, TPG and Bain have all evaluated buying into the India business of Haier India where its Chinese parent is looking to significantly bring down its ownership to make it into a local company as diplomatic relations between the two countries continue to remain strained. However, all of them had backed out following massive differences in valuations. Whirlpool Corp's chief financial and administrative officer James W Peters had told analysts last month 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. The US parent had 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.
India.com
a day ago
- Business
- India.com
Mukesh Ambani and Isha Ambani make big move, decides to expand Reliance Retail in…., big challenge for….
Isha Ambani and Mukesh Ambani Mukesh Ambani, Isha Ambani led Reliance Retail has taken its beauty retail brand Tira by opening its first store in Chandigarh. The new outlet at Elante Mall will increase Tira's presence across North India. The launch event was done with a promotional bike rally in Chandigarh. Bikers and beauty influencers also visited these stops and offered product applications like mists, lipsticks, and SPF balms. The activity was carried out to improve brand visibility on social media and increase local engagement in Punjab. Tira already has stores in metro cities like Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Pune. The brand has been focusing on urban centers with strong retail presence which can give them more customers. This new store has different beauty and wellness products including international and Indian brands. The products are from different categories like skincare, makeup, haircare, fragrance, and wellness. The store also gives personalized services like Tira Signature Looks and makeovers by in-house beauty experts. Its mobile app has over 5 million downloads and a digital presence on 98 percent of India's pin codes. Tira is managing its brand online and offline with a customer focused beauty retail model. Isha Ambani daughter of Mukesh Ambani leads Reliance Retail which is the retail arm of Reliance Industries . She handles the company's strategy and operations like looking after e-commerce platforms Ajio and the beauty platform Tira. During her regime Reliance Retail has introduced many global luxury brands to the Indian market. She has also tried reducing the urban-rural divide by making quality goods and services available for all types of consumers.
