• Whirlpool of India is a part of world renowned Whirlpool group of companies which has renowned brand names in nearly every country throughout the world.
  • 2018 was an eventful year by any standard. What started as a relatively stable macro environment in the first half several ups and downs in the second half. We have delivered industry beating again this year, gaining share and delivering our profit targets for the year.
  • We made structural changes in our focused growth categories with the strategic investment in Elica PB for cooking, significant localisation of our air conditioning portfolio and the launch of new Purafresh range of water purifiers.
  • A growing economy along with increasing social media influence is creating higher aspiration levels for the fast evolving Indian consumer. This is fuelling the desire to live life to the fullest when it comes to lifestyle choices and thus a higher demand for durables for convenience.
  • Increasing exposure to global trends and lifestyle cues and a rise in working age population is creating a larger base of consumers with increasing discretionary income. Easy financing schemes are fuelling shortened product replacement cycles with the will to trade-up for the right experience changing the perception of durables as utility items rather than luxury possessions.
  • E-commerce platforms continue to grow at a fast pace. They are fast becoming a discovery platform for products for consumers and one of the key influencers in the consumer decision journey. A lot of emphasis is being laid in ensuring positive user reviews and post purchase service experience.
  • Government initiatives behind affordable housing, national electrification, financial inclusion along with indirect benefits to bolster infrastructure are expected to continue.
  • Over the next decade India will move from being an economy led by the bottom of the pyramid, to one led by the middle class. Up from about 50% of the households today, the middle income group will become nearly 80% of the households and will drive about 75% of consumer spending. Higher income and a growing consumption culture will fuel the high-income bracket to spend more on essential categories like food, beverages, apparel, personal care, gadgets, transport and housing. This growth will also be observed in an accelerated rate in semi urban and rural markets.
  • The Company operates only in one segment of White Goods. Refrigerator (Direct Cool/Frost free), Washer and Air conditioner constitute 60%, 22% and 6% respectively of the revenue from operations.
  • The Company launched its first-ever Smart Air Conditioner in India that enables users to control the appliance remotely by giving voice commands through Google Home. With the introduction of the new 3D Cool Range with Voice and Wi-Fi, consumers are now closer to a smarter way of life and can enjoy the convenience of a connected home.
  • Position Service as a competitive advantage by introducing our “Consumer Service Promise” – Strengthen systems & processes, field service network to deliver this service promise – Continue to grow accessibility & visibility of Whirlpool genuine spare parts in the after sales market.

My view: The stock price reflects considerable strength, Whirlpool has a strong brand image(for refrigerators currently) amongst consumer minds. The business is going through transformation and has several tailwinds if the execution goes right. This is a stock for the next generation and the business would probably continue to do well for a few years, their ROCEs and ROEs are a dream for any company.


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