Growth trajectory to stay upbeat – Whirlpool's growth momentum to stay firm driven by a combination of reach expansion efforts taken over the past 2-3 years, new product introduction and higher same store sales growth.

Widened distribution reach should contribute to overall growth – WHIRL has significantly increased its distribution reach over the past few years and had increased by more than 50% during this period (WHIRL had about 18,000 distribution touchpoints 3 years ago). Currently WHRIL’s distribution reach is on par with market leader LG’s.

New product introduction should keep demand robust – WHIRL aims at new product/model launches every 2 months. New products in Direct Cool (with auto de-frost), glass door model in Frost Free refrigerators and semi-automatic washing with heater options are new ranges being launched/to be launched.

New competitors on the fray – Apart from Voltas’ entry into the refrigerator/washing machine category last year, increased competition from Haier, entry of Electrolux (tie up with Reliance) and Toshiba-Midea need to be acknowledged.

Elica Joint Venture performing well – Elica currently has achieved ~Rs. 3bn of revenue and has been growing at a significant pace with above company level margins.

Capital allocation strategy – Whirlpool is debt free and currently carries a cash balance of Rs. 13bn. The management alluded towards increasing allocation towards higher dividends or further capex

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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