Whirlpool to Reduce Stake in Indian Subsidiary to 20% in 2025

2025-01-30 companies

Benton Harbor, Thursday, 30 January 2025.
Whirlpool Corporation plans to decrease its stake in its Indian unit from 51% to 20% by 2025, aiming to optimize growth and maintain market relevance.

Strategic Ownership Reduction

Whirlpool Corporation (NYSE: WHR) has announced plans to reduce its ownership stake in Whirlpool of India Ltd from the current 51% to approximately 20% through market sales by mid to late 2025 [1][2]. This strategic move follows a previous stake reduction in February 2024, when the company sold 24% of its Indian unit for $468 million to reduce debt [3].

Financial Implications

The company expects to generate significant cash proceeds from this transaction, with estimates ranging between $550 million and $600 million [2][4]. This move aligns with Whirlpool’s broader financial strategy, as the company reported challenging results in 2024, including a net loss of $323 million and net sales of $16.607 billion [5]. The transaction is expected to strengthen Whirlpool’s balance sheet and support its debt reduction goals [2].

Continued Commitment to Indian Market

Despite the planned stake reduction, Whirlpool Corporation emphasizes its commitment to the Indian market [6]. The company will maintain its position as the largest shareholder in Whirlpool of India and continue providing brand licensing and technology agreements [7]. This restructuring aims to grant more autonomy to the Indian subsidiary, enabling it to better adapt to local market conditions and pursue accelerated growth opportunities [8].

Market Impact and Future Outlook

The announcement has already impacted market sentiment, with Whirlpool of India’s shares experiencing significant volatility [9]. Looking ahead to 2025, Whirlpool Corporation projects positive performance with an expected GAAP earnings per diluted share of approximately $8.75 and ongoing earnings of around $10.00 [5]. The company plans to maintain strategic oversight while allowing its Indian operation greater operational flexibility [7].

Sources

Whirlpool stake reduction