France' Groupe SEB eyes 100 pc stake in home appliances maker Maharaja Whiteline
http://www.maharajawhiteline.com/
France's GroupeSEB plans to increase its stake in appliances maker Maharaja Whiteline to 100 per cent from 55 per cent, after having already moved original promoter Harish Kumar to a non-executive role, two senior industry executives tracking the development said.
Both Groupe SEB and Kumar-who is upset with the way he was removed from an executive position-denied any immediate transaction, but a senior industry executive said Europe's largest small appliances maker has already given indication to select trade circles that it will eventually have full ownership control of Maharaja Whiteline.
"In fact, Groupe SEB had last year acquired Maharaja Whiteline not because of the brand but its wide distribution network and manufacturing plant. And now, the removal of Harish Kumar is a step towards increasing ownership," the person said.
Kumar with his family owns 45 per cent stake in Maharaja Whiteline.
Frederic Verwaerde, the new managing director of Maharaja Whiteline and a member of the executive committee at Groupe SEB said the French firm currently has no intention to buy out the original promoters.
Kumar too said any further stake sale from his side can happen only after December 2013 as per the original sale agreement inked last year when he sold a majority to the French company. "My family will decide on the stake sale, since my wife has more shares than me and even my son and two daughters have sizeable holding. The family board will decide before proceeding on any such talks," he said.
Groupe SEB last Friday announced the change in management for Maharaja Whiteline, appointing Verwaerde as MD and Sunil Wadhwa, who was earlier the CEO and MD at Usha InternationalBSE 0.00 %, as CEO. Kumar did not like the way it was done. "It was not right the way they abruptly made the changes," he said. "I had expected Groupe SEB to act more responsibly."
He said it is a problem between the two partners and he will raise the issue through peaceful talks as a shareholder, without creating any problem for the company's performance, employees, vendors, and consumers. Verwaerde, however, said the decision to appoint a new top management at Maharaja Whiteline has been agreed by the two shareholders.
"It was felt that a fresh impetus was required to steer Maharaja Whiteline on to a positive track and that of growth. We want to accelerate our growth and presence in the Indian market. It could lead us to launch brands from our international portfolio," he said.
Maharaja Whiteline was one of the leading players in the small appliances space with products such as mixer-grinder, juicer, toaster and OTG, but lost out to competitors such as Philips, Bajaj and Panasonic. Kumar said the company is expected to touch Rs 200 crore revenue this year.
Groupe SEB operates in nearly 150 countries with brands such as Moulinex, Krups, Rowenta and Tefal.
Source : WRITANKAR MUKHERJEE,ET BUREAU
http://www.maharajawhiteline.com/
The new MD of Maharaja Whiteline and a member of executive committee at Groupe SEB said the firm has no intention to buy out original promoters.
France's GroupeSEB plans to increase its stake in appliances maker Maharaja Whiteline to 100 per cent from 55 per cent, after having already moved original promoter Harish Kumar to a non-executive role, two senior industry executives tracking the development said.
Both Groupe SEB and Kumar-who is upset with the way he was removed from an executive position-denied any immediate transaction, but a senior industry executive said Europe's largest small appliances maker has already given indication to select trade circles that it will eventually have full ownership control of Maharaja Whiteline.
"In fact, Groupe SEB had last year acquired Maharaja Whiteline not because of the brand but its wide distribution network and manufacturing plant. And now, the removal of Harish Kumar is a step towards increasing ownership," the person said.
Kumar with his family owns 45 per cent stake in Maharaja Whiteline.
Frederic Verwaerde, the new managing director of Maharaja Whiteline and a member of the executive committee at Groupe SEB said the French firm currently has no intention to buy out the original promoters.
 |
Kumar too said any further stake sale from his side can happen only after December 2013 as per the original sale agreement inked last year when he sold a majority to the French company. "My family will decide on the stake sale, since my wife has more shares than me and even my son and two daughters have sizeable holding. The family board will decide before proceeding on any such talks," he said.
Groupe SEB last Friday announced the change in management for Maharaja Whiteline, appointing Verwaerde as MD and Sunil Wadhwa, who was earlier the CEO and MD at Usha InternationalBSE 0.00 %, as CEO. Kumar did not like the way it was done. "It was not right the way they abruptly made the changes," he said. "I had expected Groupe SEB to act more responsibly."
He said it is a problem between the two partners and he will raise the issue through peaceful talks as a shareholder, without creating any problem for the company's performance, employees, vendors, and consumers. Verwaerde, however, said the decision to appoint a new top management at Maharaja Whiteline has been agreed by the two shareholders.
"It was felt that a fresh impetus was required to steer Maharaja Whiteline on to a positive track and that of growth. We want to accelerate our growth and presence in the Indian market. It could lead us to launch brands from our international portfolio," he said.
Maharaja Whiteline was one of the leading players in the small appliances space with products such as mixer-grinder, juicer, toaster and OTG, but lost out to competitors such as Philips, Bajaj and Panasonic. Kumar said the company is expected to touch Rs 200 crore revenue this year.
Groupe SEB operates in nearly 150 countries with brands such as Moulinex, Krups, Rowenta and Tefal.
Source : WRITANKAR MUKHERJEE,ET BUREAU
No comments:
Post a Comment