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Groupe Atlantic, France, a €2.2 billion company, will invest ₹68.3 crore for a 50 per cent stake in Hintastica Private Limited (HPL), the water heater business subsidiary of Somany Home Innovation Limited (SHIL).
Hintastica Private Limited is setting up a manufacturing plant in Telangana to be built on 5.7 acres and will be completed by March 2022. Trial runs from the plant are expected to commence from May 2022.
Groupe Atlantic produces over 8 million appliances and products every year, including 2.8 million water heaters in its six dedicated manufacturing plants.
Sandip Somany, Chairman and Non-Executive Director of SHIL in a statement said, “This joint venture is in line with our strategy. The transaction is value accretive for SHIL.”
Gilles Romagné, International Managing Director of Groupe Atlantic, said, “After a fruitful partnership, Groupe Atlantic is delighted to join SHIL in this new venture, to further strengthen the bond between us. We will together build a best-in-class facility in Telangana to meet the future needs of not only India but also the neighboring nations in the SAARC region.”
The country’s water heater market is currently pegged at close to 36 lakh units annually, with SHIL commanding a market share of approximately 7.3%.
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