Whirlpool plans to sell 24% ownership in India business to reduce debt

Whirlpool of India reported a 23.7% drop in second-quarter profit earlier this month, as the home appliances maker grappled with weak demand amid stiff competition

American home appliances major Whirlpool Corporation is planning to sell up to 24 per cent stake in its Indian arm, Whirlpool of India Ltd next year to raise funds to reduce debt level, according to a regulatory filing.

On November 30, 2023, Whirlpool Corporation announced its intention to enter into one or more transactions to sell up to 24 per cent of its ownership interest in Whirlpool of India Ltd in 2024, the company said in a regulatory filing, which was shared on BSE by Whirlpool of India.

"The company maintains a 75 per cent ownership interest in Whirlpool India through a wholly-owned subsidiary, and intends to retain a majority interest in Whirlpool India following completion of such transaction or transactions," it added.

Further, Whirlpool Corporation said it expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility.

"Proceeds expected to be used for debt repayment are incremental to the USD 500 million term loan repayment that the company previously disclosed it expects to pay in the fourth quarter of 2023," it added.

Whirlpool Corporation asserted that it continues to see India as a significant marketplace for growth and an integral part of its growth strategy and it "remains committed to expand the business with new product launches and the recently acquired Elica India business".

Whirlpool of India is a listed entity with 25 per cent public shareholding.