Everstone to buy India's Kenstar

Financial details of the transaction have not been disclosed. According to a release, Kenstar's existing management team will remain in place, and the company will operate independently. Everstone will also enter a strategic alliance with Videocon for manufacturing the Kenstar brand and developing new products.

Kenstar is best known for its brand of air coolers, the second-most popular nationwide. The company also makes air conditioners and a broad range of other home appliances such as juicers, mixers, food processors and microwave ovens.

Videocon has been looking to sell assets to reduce its debt, which has been reported to be as high as INR430 billion ($6.7 billion). The conglomerate has interests across a wide range of sectors in addition to home appliances, including mobile phones, telecommunications, petroleum and consumer electronics.

Everstone's acquisition of Kenstar is the firm's second corporate carve-out, following its purchase of Hindustan Unilever's bakery business last year. The GP has sought to overhaul the business's operations for a relaunch under the Modern Foods brand.

"Kenstar is a marquee household appliances brand with a strong recall," said Avnish Mehra, a managing director at Everstone. "Everstone looks forward to significantly investing in the Kenstar brand and leveraging our operating expertise to unlock its true potential by strengthening the dealer network, supporting product innovation, and investing in brand building."

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• Topics
• South Asia
• Consumer
• Industrials
• Buyouts
• India
• manufacturing
• Everstone Capital