Gurugram, March 2021.

Group Atlantic, France, a 2.2 billion Euro company with a dominant presence in manufacturing, developing, and distributing eco-friendly heating products and hot water solutions are to invest ₹68.3 crore for a 50% stake in the water heater business subsidiary of Somany Home Innovation Limited (SHIL), one of India’s leading premium consumer appliances and building products company.

The company Board approved the execution of the share subscription and shareholder’s agreement (“SSHA”) (along with the ancillary agreements) with M/s Atlantic Societe Francaise De Development Thermique, France (“Groupe Atlantic”) and Hintastica Private Limited (“HPL”), which at present is a wholly owned subsidiary Somany Home Innovation Limited (SHIL).

Hintastica Private Limited is setting up a state-of-the-art manufacturing plant in Telangana. The project is in line with the Government of India’s ‘Make in India’ initiative and all components will be made/sourced from within India. The plant will be built on a plot of 5.7 acres and will be completed by March 2022, with trial runs expected to commence from May 2022. The plant will also help generate employment for over 500 people directly and indirectly in peak season.

Groupe Atlantic, has over 50 years of rich experience in eco-friendly heating and hot water solutions in Europe, the Middle East, Africa, and Asia. It has commercial operations across four continents and 28 industrial sites. The organization has 10,000 employees worldwide. It owns 17 brands that are geared towards providing efficient and eco-friendly heating solutions for homes as well as other applications. Groupe Atlantic produces over 8 million appliances and products every year, including 2.8 million water heaters in its six dedicated manufacturing plants. 4% of Groupe Atlantic’s turnover is committed to the development of new products, a reflection of the organization’s dedication to innovation and R&D.

HPL will leverage Groupe Atlantic's proven expertise in manufacturing and assembly as well as SHIL’s strengths in marketing and distribution to deliver to the consumer in India and also the neighboring nations in the SAARC region, a range of high-quality products and accessories all under the brand name ‘Hindware Altantic’.

Mr. Sandip Somany, Chairman and Non-Executive Director of SHIL said,“This joint venture is in line with our strategy of building leadership positions across pioneering categories. The transaction which is value accretive for SHIL is aligned with our objective of being ‘asset right’ and prudently deploying capital to create sustainable value and delight amongst our consumers. Groupe Atlantic, is a well-renowned name, known for its expertise in the heating solutions segment and its investment in our company is a testament to the fact that we have created value in the water heaters segment in India.  

He further added, “Despite the water heater segment being a highly fragmented market, we have succeeded in creating a mark for ourselves in a short span of time.We believe that the JV will not only help us further strengthen our position in this market, but also provide a winning combination, offering consumers a wide range of innovative and exciting products, while enhancing our margins.”

Mr. 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. Hindware is a brand with a rich legacy and extraordinary expertise in the Indian market. Combined with our experience of 50 years in water heaters and heating solutions, we believe there is a significant opportunity to forge a profitable partnership, fulfilling the needs of the Indian consumers and delivering value. We will together build a best-in-class facility in Telangana, India for manufacturing and marketing of water heaters to meet the future needs of not only India but also the neighboring nations in the SAARC region.”

The water heater market in India is currently pegged at close to 36 lakhs units annually, with SHIL commanding a market share of approximately 7.3%. The water heaters market has been growing at an annual rate of CAGR of 10% past four years and is expected to grow at the same rate over the coming years.