Chennai-based appliances brand Preethi, a leader in mixer-grinders in the south, is set to change hands. Preethi will come under Philips India, the wholly-owned subsidiary of the global major Philips.
This follows an agreement initialled by the promoters of the three-decade-old Maya Appliances Pvt. Ltd., which owns Preethi brand, and Philips. Though an ‘intent to buy' agreement has been inked between the two, it will take around three months for the deal to be consummated.
Special purpose vehicle
The deal, according to sources, is subject to all regulatory and legal clearances. The size of the deal is not disclosed. Vijay Srinivasan, Director (Marketing), Maya Appliances, said brand Preethi along with associated assets would be moved to a special purpose vehicle (SPV) to be owned by Philips. “The details are still being worked,” he said. Mr. Srinivasan told The Hindu that the turnover of Maya Appliances would exceed Rs.400 crore this financial year. Last year, according to him, the company posted sales of around Rs.300 crore.
The company, he claimed, had been growing 30-35 per cent year-on-year for some years now. The company had plants in Himachal Pradesh and Chennai, he said. It has a network of over 7,000 dealers and over 750 service centres and employs 2,250 people who will now be part of the new company.
Preethi is a major player in the appliances segment in India with products such as mixer grinders, auto cookers/warmers, induction cook-tops, coffee makers, kettles and irons. “We have been enjoying a market share of 25 per cent in the mixer-grinder segment,” Mr. Srinivasan said. Volume-wise, the national mixer-grinder market is estimated to be five million units. “Preethi brand of mixer-grinders sell around 1.5-1.6 millions,” he said. He claimed that post-sale, Preethi brand would continue to exist. According to Mr. Srinivasan, the existing management, including the promoter and Managing Director of the company, T. T. Varadarajan, would continue to play its role in the yet-to-be named new entity.
