Groupe SEB buys all of Maharaja Whiteline

French parent's Eurasia V-P Martin Zouhar appointed CMD

After three years of fierce battle with its Indian partner, France-based Groupe SEB, the world’s largest home appliances company, has decided to buy the remaining 45 per cent stake in Maharaja Whiteline, to take full control.

The Rs 35,000-crore company had entered the Indian market in December 2011 by taking a 55 per cent stake from Harish Kumar, founder of Maharaja Whiteline. However, with its premium imported products, the French company failed to crack the Indian market, dominated by value-for-money products by local manufacturers.

The battle
A growing spat between the French partner and Kumar stepped out of the board room and reached the court room in 2012. This was after Groupe SEB decided to remove Kumar as the executive chairman and managing director (CMD), for failing to meet the financial targets. This was in 2012, after Kumar declined to step down, to take a non-executive role, before his two-year term ended, scheduled for December 2013. Kumar is a veteran of many corporate battles, and came into the limelight after he took Electrolux, his previous joint venture partner, to court.

He was replaced by Frederic Verwaerde, a member of the executive committee of Groupe SEB. Sunil Wadhwa, former managing director and chief executive officer of Usha International, was inducted as the new CEO.

Maharaja Whiteline, set up in 1976, has 500 distributors and sells through 26,000 outlets across India.

“This full acquisition confirms Group SEB’s ambition to expand in India and significantly develop Maharaja Whiteline. As a matter of fact, Groupe SEB’s objective is to now quickly accelerate Maharaja Whiteline’s growth in India,” the company stated.

Martin Zouhar, vice-president at Groupe SEB for Eurasia (Africa, India, Middle East, Russia,Turkey and Ukraine), has been appointed CMD of Maharaja Whiteline.

Sunil Wadhwa will remain the CEO, the statement added.

While Maharaja is a known brand, there is a negative perception about the quality of its products, which the French owner would like to change.

Last year, Verwaerde told Business Standard there was a need to improve quality to meet customer requirements. Groupe SEB has a range of popular global brands in the premium segment, such as Moulinex and Tefaland Rowenta. The French appliances giant has a little more than 20 product categories.