Motilal Oswal - Whirlpool of India (WHIRLPOOL) MOSL: WHIRLPOOL (Not Rated)-Focus on premium segment and bridging product gaps-Guides for double-digit growth

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Motilal Oswal

MOSL: WHIRLPOOL (Not Rated)-Focus on premium segment and bridging product gaps-Guides for double-digit growth

â€‹WHIRLPOOL: Focus on premium segment and bridging product gaps; Guides for double-digit growth in revenue

(WHIRL IN, Mkt Cap USD2.9b, CMP INR1500, Not Rated)

We attended Whirlpool Limitedâ€™s analyst meet. Key highlights:

Focus on premium products and bridging product gaps
Premium is the new focus area for the company. It forms only 10-15% of every product category, despite being more profitable than other segments. Whirlpool has historically been strong in the Mass premium segment; however, for scale and higher profitability, it will now focus more on the premium categories.
European front load washing machines were launched recently at very competitive prices. The company intends to offer more such global products for Indian customers via the INDESIT acquisition through cheap manufacturing in Europe. The company was earlier struggling with imports from the US, as the products there are much bigger. However, sourcing from Europe appears apt as the products are smaller and more suited to India.
Product gaps in premium products are now being addressed (400 litre fridge and large capacity of semi-auto WM launched; one more in the pipeline).

28/11/2017 6 EN

Underlying

Whirlpool of India

Whirlpool of India Limited is a manufacturer of home appliances. The Company is primarily engaged in manufacturing and trading of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small appliances and caters to both domestic and international markets. It provides services in the area of product development, and procurement services to Whirlpool Corporation, the United States and other group companies. Its geographical segments include Sales within India, which represents sales made to customers located within India and Sales outside India, which represents sales made to customers located outside India. The Company also offers Water Purifiers, Built-In Appliances and Induction cooktop. The Company offers accessories for Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and Water Purifiers. It offers Surge Protector and Affresh Accessories. Its plants are located at Faridabad, Haryana; Rajangaon, Pune, and Thirubhuvanai Village, Puducherry.

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INE716A01013 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: WHIRLPOOL (Not Rated)-Focus on premium segment and bridging product gaps-Guides for double-digit growth

Thanks to a better fundamental star rating, WHIRLPOOL OF INDIA sees an upgrade to Neutral

MOSL: WHIRLPOOL OF INDIA (Buy)-Revenue in line; commodity prices dent gross margin

Monthly LMI Update Independent Investment Research

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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