Kochi-based V-Guard Industries (V-Guard) on Saturday announced the signing of definitive agreements for acquiring 100 per cent stake in Sunflame Enterprises Private Ltd. (SEPL) for Rs 660 crore.
The all-cash deal is expected to close by mid of January 2023, said a top V-Guard official and it would be funded through a mix of internal accruals and debt.
The acquisition is in line with V-Guard’s strategy to become a significant player in the domestic Kitchen Appliances segment.
The Sunflame brand has a pan India presence with a strong brand recall.
SEPL’s wide portfolio, product development capabilities and the recently established state-of-the-art integrated manufacturing facility provide the perfect opportunity for V-Guard to scale up its Kitchen Appliances business while also unlocking synergy benefits.
Mithun Chittilappilly, Managing Director, V-Guard, said Sunflame is an iconic brand etched in the memories of Indian households and is expected to provide significant thrust to V-Guard’s plans to become a leading Indian Kitchen Appliances player.
K.L. Verma, Managing Director, SEPL said that having started this journey in 1984, they have come a long way since then. V-Guard, a name synonymous with trust, is the right organization to take this legacy forward.