Whirlpool India stake sale: EQT, Bain lead as Reliance, Havells step back

Private equity firms EQT and Bain Capital are leading the race to acquire a 31 per cent stake in Whirlpool India, as rivals like Reliance Industries and Havells withdraw over valuation concerns

Global private equity firms EQT and Bain Capital have emerged as the top contenders to acquire a 31 per cent controlling stake in Whirlpool of India, according to a report by The Economic Times. While firms like TPG, KKR, Havells, and Reliance Industries had earlier shown interest, they are reportedly no longer in the fray.

 

Both EQT and Bain are currently conducting detailed due diligence. Binding offers are expected to be submitted by August. The stake is held by Whirlpool Mauritius, a subsidiary of the US-based Whirlpool Corp, which plans to retain a 20 per cent holding in the Indian unit.

 

 

Whirlpool is selling its stake as part of a larger global restructuring plan that began in late 2022, following a reported loss of $1.5 billion. The sale process, officially kicked off in April, is being handled by Goldman Sachs.

 

Through this deal, Whirlpool is looking to generate between $550 million and $600 million (approximately ₹4,684 crore to ₹5,110 crore). The deal would also trigger an open offer for an additional 26 per cent, potentially giving the buyer up to 57 per cent ownership.   

 

Valuation concerns and past sale

 

The company’s high valuation expectations and future royalty payouts to the parent have made several bidders wary. In February 2023, Whirlpool sold a 24.7 per cent stake in its India arm via block deals worth ₹4,039 crore to investors including SBI Mutual Fund and Societe Generale.

 

Havells and Reliance exit

 

Havells, which was keen to expand beyond air-conditioners (Lloyd brand), stepped back due to valuation and focus on its existing business, according to The Economic Times report. Similarly, Reliance exited the race due to a price mismatch and has since acquired the Kelvinator brand in India for ₹160 crore, the news report said.

 

Whirlpool India FY25 financial highlights

 

In the financial year 2024-25 (FY25), Whirlpool India posted a consolidated net profit of ₹362.78 crore, reflecting a sharp increase of 61.7 per cent compared to ₹224.3 crore recorded in FY24.

 

The company’s consolidated revenue from operations grew 15.9 per cent year-on-year, reaching ₹7,919.37 crore, up from ₹6,829.79 crore in the previous financial year.

 

Whirlpool’s total expenses for the year rose to ₹7,627.04 crore, higher than the ₹6,667.35 crore reported in FY24. Meanwhile, the total income climbed 16 per cent on a yearly basis to ₹8,110.16 crore, as against ₹6,993.59 crore in the preceding year.