Whirlpool Corporation to Reduce Stake in Indian Unit to 20% by 2025; Shares Plunge 20%

Whirlpool Corporation has announced plans to reduce its stake in Whirlpool India from the current 51% to around 20% by mid to late 2025 through one or more market sales. Following this announcement, Whirlpool India’s shares dropped by 20% on January 30.

The decision was disclosed in Whirlpool Corporation’s earnings report filed with the United States Securities and Exchange Commission (SEC). This follows the company’s previous stake reduction of nearly 24% in early 2023, raising approximately $468 million to reduce debt.

Despite the sell-down, Whirlpool Corporation will remain the largest shareholder in Whirlpool India. The company reaffirmed its commitment to the Indian market, emphasizing that Whirlpool India will continue to be a key part of its global portfolio.

“We are not exiting India; we believe in India’s long-term potential. This move will provide greater autonomy for Whirlpool India, enabling it to adapt to evolving industry conditions and focus on accelerated growth,” the company said in its statement.

Whirlpool Corp expects to generate net cash proceeds of $550-600 million from the planned stake sale. The move is aimed at optimizing capital allocation, strengthening the balance sheet, and maximizing shareholder returns, while maintaining a significant presence in the Indian market.

This strategic realignment highlights Whirlpool’s long-term confidence in India while ensuring financial flexibility to focus on core global operations.

Source: moneycontrol