Whirlpool of India, a major appliance maker, is focusing on cutting costs across various areas like logistics, infrastructure, and travel. They are also reducing new inventory in response to a global forecast of weak demand in 2024 and rumors of a takeover by Germany’s Bosch Group.
A spokesperson from Whirlpool of India stated that efficiency is a core part of their global manufacturing system. They have a comprehensive cost leadership program aiming to improve cost efficiency across all areas.
Regarding inventory, the company recently introduced new glass-door refrigerators and a patent-pending detergent dispenser in their semi-automatic washing machines. They emphasized their commitment to investing in India and growing their business.
Whirlpool faces strong competition from brands like LG, Samsung, Panasonic, and Voltas in the air-conditioner and premium refrigerator segments. Earlier this year, Whirlpool Corp, which owns brands like Maytag and KitchenAid, warned that 2024 sales might be weaker as consumers delay appliance upgrades. They plan to cut corporate headcount and reduce costs in logistics, products, and overall infrastructure.
In the January-March 2024 quarter, Whirlpool of India saw a 24.7% increase in net profit to ₹79.45 crore, with revenues up 3.66% to ₹1,734 crore. However, expenses also rose due to a 31% increase in input costs.
In February, Whirlpool Corp reduced its stake in the Indian entity from 75% to 51% to capitalize on high valuations and reduce debt. This move led Jefferies to downgrade Whirlpool to “underperform,” noting the competitive nature of the durables market.
Reports suggest Bosch is considering a multi-billion-dollar acquisition of Whirlpool, which would strengthen Bosch’s presence in India.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
