Date: December 23, 2024
In a move aligned with the ‘Make in India’ initiative, Whirlpool of India Ltd has entered a definitive agreement with PG Electroplast Ltd (PGEL) for the contract manufacturing of select models of Whirlpool-branded semi-automatic washing machines.
Key Highlights
- Manufacturing Details:
- PG Electroplast Ltd will manufacture specific SKUs at its Roorkee, Uttarakhand factory.
- PGEL is already a supplier for Whirlpool-branded air conditioners, and the partnership may expand further.
- Leadership Statements:
- Narasimhan Eswar, Managing Director of Whirlpool India:“Today’s announcement reaffirms our commitment to the government’s ‘Make in India’ initiative and to providing best-in-class products to our consumers at an affordable price point.”
- Vikas Gupta, Managing Director (Operations) of PG Electroplast Ltd:“We are pleased to deepen our relationship with Whirlpool, a leader in home appliances.”
Financial Performance
- Q2 FY25 Results:
- Net Profit: ₹287 crore, down 25.4% YoY (₹384.7 crore in Q2 FY24).
- Revenue from Operations: ₹1,582 crore, up 13% YoY (₹1,400 crore in Q2 FY24).
- EBITDA: ₹68.4 crore, up 31% YoY (₹52.2 crore in Q2 FY24).
- EBITDA Margin: Improved to 4.3% from 3.7% YoY.
- Stock Performance:
- Whirlpool shares closed at ₹1,851.35 on the BSE, down ₹87.75 (-4.53%) on Monday.
Implications
- Boost for ‘Make in India’:
- Strengthens local manufacturing capabilities.
- Supports the development of affordable, high-quality appliances for Indian consumers.
- Strategic Collaboration:
- Enhances Whirlpool’s product offerings by leveraging PGEL’s manufacturing expertise.
- Opens avenues for potential future collaborations in other product categories.
- Consumer Benefits:
- Greater availability of affordable semi-automatic washing machines.
- Reinforces Whirlpool’s position in the home appliance market.
Outlook
With this collaboration, Whirlpool aims to solidify its leadership in the Indian appliance sector while contributing to sustainable local manufacturing growth. Despite the recent decline in profit, the company’s increasing revenue and improved margins indicate a strong operational recovery trajectory.