Groupe Atlantic, France to invest ₹68.3 crore in SHIL’s subsidiary for 50% stake in its water heater business| APN News
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Groupe Atlantic, France, is investing £ 68.3 crore in the SHIL subsidiary for a 50% stake in the water heater business
Published on March 26, 2021
Bengaluru: Group Atlantic, France, a 2.2 billion euro company with a dominant presence in the manufacture, development and sale of environmentally friendly heating products and hot water solutions, is investing £ 68.3 billion in a 50% stake in the subsidiary of the water heater business of Somany Home Innovation Limited (SHIL), one of India’s leading premium consumer and building products companies.
The Company’s Board of Directors has approved the execution of the Share Subscription and Shareholders’ Agreement (“SSHA”) (together with the ancillary agreements) with M / s Atlantic Society Francaise De Development Thermique, France (“Groupe Atlantic”) and Hintastica Private Limited (“HPL” ) ”), Which is currently a wholly owned subsidiary of Somany Home Innovation Limited (SHIL).
Hintastica Private Limited is building a state-of-the-art production facility in Telangana. The project is in line with the “Make in India” initiative of the Indian government and all components are manufactured / sourced from India. The plant will be built on a plot of 5.7 hectares and will be completed by March 2022. The trial runs are expected to begin in May 2022. The facility will also help directly and indirectly create jobs for over 500 people in high season.
Groupe Atlantic has more than 50 years of experience in environmentally friendly heating and hot water solutions in Europe, the Middle East, Africa and Asia. It has commercial activities on four continents and 28 industrial locations. The organization employs 10,000 people worldwide. The company owns 17 brands that are focused on providing efficient and environmentally friendly heating solutions for homes and other applications. Groupe Atlantic produces over 8 million appliances and products each year, including 2.8 million water heaters in its six own production facilities. New product development accounts for 4% of Groupe Atlantic sales. This reflects the organization’s commitment to innovation and research and development.
HPL will use Groupe Atlantic’s proven expertise in manufacturing and assembly, as well as SHIL’s strengths in marketing and sales, to deliver a range of high quality products and accessories under the brand to consumers in India and also to neighbors in the SAARC region Name ‘Hindware Altantic’.
Mr. Sandip Somany, Chairman and Non-Executive Director of SHIL, said, “This joint venture is in line with our strategy of building leadership positions in landmark categories. The transaction, which is value-adding for SHIL, is in line with our goal of being “asset right” and carefully investing capital to create sustainable value and enjoyment for our consumers. Groupe Atlantic is a well-known name known for its expertise in the heating solutions segment. Investing in our company is proof that we have created value in the water heater segment in India.
He added: “Although the water heater segment is a highly fragmented market, we have managed to make a name for ourselves in a short period of time. We believe that the joint venture will not only help us further strengthen our position in this market, but also offer a winning combination that will bring consumers a wide range of innovative and exciting products while increasing our margins. “
Gilles Romagné, International Managing Director of Groupe Atlantic said: “After a fruitful partnership, Groupe Atlantic is excited to join SHIL in this new company to further strengthen the bond between us. Hindware is a brand with a rich heritage and exceptional expertise in the Indian market. Combined with our 50 years of experience in water heaters and heating solutions, we see a significant opportunity to build a profitable partnership that meets the needs of Indian consumers and delivers value. We will jointly build a first-class plant for the manufacture and marketing of water heaters in Telangana, India, in order to meet the future requirements not only of India, but also of the neighbors in the SAARC region. “
The Indian water heater market is currently set at almost 36 lakhs per year, with SHIL having a market share of approximately 7.3%. The water heater market has grown at a 10% annual CAGR rate for the past four years and is expected to grow at the same rate in the years to come.
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