Groupe Atlantic to invest Rs 68 cr for 50% stake in SHIL subsidiary

French company Groupe Atlantic would invest Rs 68.3 crore in Somany Home Innovation Limited (SHIL) for 50 per cent stake in its water heater business, as per a regulatory filing.

SHIL's board approved the execution of the share subscription and shareholder's agreement with M/s Atlantic Societe Francaise De Development Thermique, France (Groupe Atlantic) and Hintastica Private Limited (HPL), the filing added.

HPLis a wholly-owned subsidiary of Somany Home Innovation and is setting up a state-of-the-art manufacturing plant in Telangana.

The plant will be built on a plot of 5.7 acres and will be completed by March 2022.

Chairman and Non-Executive Director of SHIL, Sandip Somany said, "This joint venture is in line with our strategy of building leadership positions across pioneering categories."

Gilles Romagn, International Managing Director of Groupe Atlantic, said, "Combined with our experience of 50 years in water heaters and heating solutions, we believe there is a significant opportunity to forge a profitable partnership, fulfilling the needs of the Indian consumers."

Groupe Atlantic has over 50 years of experience in eco-friendly heating and hot water solutions in Europe, the Middle East, Africa and Asia.

It has 10,000 employees worldwide and owns 17 brands.

Groupe Atlantic produces over 8 million appliances and products every year, including 2.8 million water heaters in its six dedicated manufacturing plants.