Somany Home soars 5% after Groupe Atlantic plans to invest Rs68.3cr for 50% stake in its water heater biz subsidiary
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, plans to raise 68.3 billion rupees for a 50 percent stake in the subsidiary of Water heater business to invest in Somany Home Innovation Limited (SHIL), one of India’s leading premium consumer and building products companies.
Somany Home Innovation Limited was trading at the daily high of Rs 266.35, an increase of Rs 12.65 or 4.99% over BSE.
The Company’s Board of Directors has approved the implementation of the Subscription and Shareholder Agreement (SSHA) (along with its ancillary agreements) with M / s Atlantic Society Francaise De Development Thermique, France (“Groupe Atlantic”) and Hintastica Private Limited (“HPL”). who is currently a wholly owned subsidiary of Somany Home Innovation Limited (SHIL).
The company announced in a regulatory filing on Thursday that Hintastica Private Limited is building a state-of-the-art manufacturing 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’.