Whirlpool, the appliance maker based in Benton Harbor, Michigan, has announced its intention to sell up to 24% of its controlling stake in Whirlpool of India. The company aims to use the proceeds from the sale to reduce its debt levels and enhance the flexibility of its balance sheet.
Currently, Whirlpool holds a 75% stake in Whirlpool India, which boasts a market capitalization of approximately $2.35 billion. Despite the planned sale, Whirlpool intends to maintain a majority interest in the Indian home-appliance maker.
In addition to the debt reduction plan, Whirlpool will also make a $500 million term-loan repayment by the end of the year. The company emphasizes its commitment to India as a significant marketplace for growth and a vital part of its overall strategy. This commitment is demonstrated through plans for new product launches and the recent acquisition of Elica India business.
Whirlpool’s decision to sell a stake in Whirlpool India aligns with its objective to strengthen its financial position. The company aims to take advantage of opportunities for growth while maintaining its leading position in the Indian market.