India Inflection Opportunity Fund (IIOF) Picks-up 5% Equity Stake in Vardhman Appliances Limited, Leading Consumer Appliances ODM Business
- Vardhman Appliances Limited is a 4-decade manufacturing legacy of consumer appliances, including fans, irons, room heaters, mixer grinder, hand blenders cooktops, rice cookers, electrical kettles immersion heaters, heating elements, thermostats among others
- India Inflection Opportunity Fund has picked-up 5% stake in the Company for an undisclosed amount
MUMBAI, India, June 27, 2024 /PRNewswire/ — Delhi-based, Vardhman Appliances Limited (“Vardhman”/ “the Company”) confirmed the closure of the Pre-IPO placement round. India Inflection Opportunity Fund picked-up approximately 5% stake in the Company for an undisclosed amount.
Vardhman is renowned as a premier manufacturer in the consumer appliances segment, with enduring products, and a loyal customer base pan India. The Company has ISO 9001 and BIS certified products, utilizing unique manufacturing technology, acknowledged by prominent OEM/ODM clientele.
The Company demonstrates a strong and solid financial foundation, Vardhman has an approximate top line of Rs.1000 crores growing at CAGR of 18% over Fiscal 2021 to 2024. The Company had robust return ratios of Return on Equity of 28% and Return on Capital Employed of 34% with Fixed Asset Turnover of 14.6x.
The Company has 5 state of the art manufacturing facilities in Kundli (Haryana) & Baddi (Himachal Pradesh).
Notably apart from ODM business, the Group markets and sells its products under its own brand ‘Lazer’, which has risen to prominence, establishing itself as a leading brand over the past decade. Lazer’s impressive footprint spans over 20 states with 8 branch offices, offering a diverse portfolio of over 200 SKUs across various categories. The brand’s success is further bolstered by its seamless supply chain and a meticulously organized Pan-India distribution network, featuring over 1000 distributors and dealers, as well as 15,000 retailers, online platform and institution sales. The brand is backed up by strong service franchise network spread over 300 locations across India for seamless service to their customers.
Vardhman is promoted by Mr. Parmod Kumar Jain, an engineer by profession and visionary leader, who has played a key role in the Company’s competitive edge through market understanding, innovation, and strategic planning. His commitment to ethics, excellence, and adaptive strategies defines his leadership, contributing to the Company’s resilience and prosperity.
Mr. Parmod Kumar Jain, Chairman of Vardhman, said on the occasion, “Our vision is to tackle real-time problems with top-quality products that make a difference. Every day, we embrace new ideas and seek continuous improvement, supported by a team of dedicated professionals. We’re committed to delighting our customers and building lasting relationships with our partners and team members. By upholding the highest ethical standards and focusing on customer satisfaction, we drive collective success and create long-term value for everyone involved.”
“By combining our market expertise with IIOF’s robust financial backing, we are well-positioned to maximize shareholder value and drive sustainable growth. This collaboration sets the stage for creating long-term economic value, ensuring a prosperous future for all stakeholders involved,” Mr. Parmod Kumar Jain added.
Speaking about its investments in Vardhman, Ms. Madhu Lunawat, CIO of India Inflection Opportunity Fund said, “We are excited to be a part of Vardhman Group with 4+ decades of experience in manufacturing of consumer appliances. United, we can foster a thriving and resilient environment, paving the way for new opportunities and sustainable growth. With exceptional execution capabilities, supported by a professional team with a clear vision and strong leadership, we recognize significant growth prospects in Vardhman.”
IIOF has established itself as a prominent fund house in the mid-market sector. The fund invests in the assets backed profitable companies at growth stage. The fund avoids environmentally irresponsible business.
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