The post-merger equity base of Whirlpool of India stands at nearly Rs 40 crore, while Whirlpool Corporations shareholding in the company is now 56.3 per cent.
The merger, which was approved by the shareholders of all the companies, was awaiting the clearances from the high court. The merger will be with retrospective effect from April 1, 1996.
The 35th annual general meeting of Kelvinator of India held in March this year had passed the resolution changing the name of the company to Whirlpool of India, and had adopted the audited profit and loss account of the company for the 15-month ended September 30, 1995.
Following the shareholders approval, Kelvinator of India had submitted applications for government approval for a change in name as well as for the merger of WWML into it. The decisions to merge WWML into Kelvinator of India and to change the name of the latter to Whirlpool of India has already been approved by the boards.
The share swap has been worked out to 4:1, that is, one share of Whirlpool of India for every four shares of Whirlpool Washing Machines.
The multinational had forked out over Rs 300 crore to acquire the 51 per cent stake in the Indian company at Rs 197.16 per share. Whirlpools acquisition of Kelvinator boosted the Indian companys reserves cum surplus by Rs 263.90 crore, and increased the paid up capital from Rs 17.63 crore to Rs 31.73 crore.
The US-based parent also held the majority stake of 51 per cent and later increased it to 78.5 per cent in Whirlpool Washing Machines the erstwhile TVS Whirlpool which began as a joint venture between the white goods giant and Sundaram Clayton to manufacture washing machines for the domestic market.
Whirlpool has recently reported a net loss of Rs 36 crore in Kelvinator of India and about Rs 20 crore in Expo Machinery for the 15-month ended September 30, 1995. The accumulated losses, as published in the latest annual report of the company is Rs 36.73 crore in Kelvinator of India and Rs 33.40 crore in Expo Machinery.
To focus and expand its thrust in the domestic refrigerator segment, the multinational has closed down the unrelated divisions of cash register and moped manufacturing in Kelvinator of India. It is also investing over $100 million to set up its first Global No Frost project in Asia in India. The new plant, to be located in Ranjangaon near Pune will have an annual manufacturing capacity of 1.3 million refrigerators, and is slated to be operational by end 1997.
Whirlpool Washing Machines ad earlier reported profit before tax of 51.97 lakh for the thirteen-month period ended December 31, 1995, as against a loss of Rs 8.19 crore in the preceding twelve months ended November 30, 1994, thus effecting a turn around under the new Whirlpool management.
