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06 Nov 2017

Everstone Group agrees to buy Kenstar

  • Plans significant investments, resources and operating support to build the brand and grow its business

Mumbai, Monday, November 06, 2017 – The Everstone Group (Everstone) has agreed to buy “Kenstar”, India’s leading brand of coolers, air conditioners and home appliances. The proposed sale, subject to statutory approvals and specific clearances, includes the purchase and transfer of the “Kenstar” brand and businesses under the brand on a going concern basis including a state-of-the-art manufacturing facility, as well as assets from Century Appliances Ltd. (an associate of the Videocon Group).

The Parties will work together to close the deal in the near future.

Under the agreement, the existing management team at Kenstar, led by business head Rajiv Kenue, will continue to manage the business, and will be strengthened significantly by the operational capabilities, additional resources and financial investments of the Everstone Group. Operating as an independent company, the Kenstar business will be controlled by Everstone. As part of the planned deal, Everstone will also enter into a strategic alliance with Videocon group, among others, for manufacturing, cooperation on Kenstar brand, and developing new products.

Kenstar is a market leading brand of air coolers, with No. 1 or strong No. 2 positions in most regions in India and a National No. 2 share. Kenstar also has a significant and growing presence in air conditioners and a broad range of home appliances such as mixer grinders, juicer mixer grinders, food processors, electric kettles, oxy fryers, microwave ovens, water heaters, and smart ceiling fans.

The Everstone Group currently spans a portfolio of over 30 companies, with a combined turnover of over Rs. 12,000 crores and a total workforce of around 1,00,000. It has a track record of building businesses from scratch such as Burger King India (chain of fast food eateries); IndoStar Capital Finance, a leading NBFC; and rapidly growing businesses such as publisher S. Chand Group (recently listed on the stock exchange after over four years of acquisition-led growth). The agreement to buy Kenstar follows Everstone’s acquisition of HUL’s bread and bakery division under the brand Modern in April 2016. Powered by Everstone’s financial investments and operating expertise, the Modern business has been completely revamped. In less than 18 months, Modern Foods has grown rapidly as an independent company, with a comprehensively renovated brand, rapidly expanding distribution, and innovative new products.

Speaking on the proposed Kenstar deal, Avnish Mehra, Managing Director, Everstone Group, said, “Kenstar is a marquee household appliances brand with a strong recall. Everstone looks forward to significantly invest in the Kenstar brand and leverage our operating expertise to unlock its true potential by strengthening the
dealer network, supporting product innovation, and investing in brand building.”

Anirudh Dhoot, Director, Century Appliances Ltd., welcomed the agreement and said: “We believe Everstone is the perfect partner for Kenstar with the right mix of financial resources and operating expertise to rapidly grow the latent potential of the Kenstar business. We look forward to collaborating with Everstone and Kenstar teams in growing the business in the years to come.”

About The Everstone Group
The Everstone Group is a premier India and Southeast Asia focused business group and multi asset manager with assets under management of approximately US $4 billion. Everstone has presence across six offices— Singapore, Mumbai, Delhi, Bengaluru, Mauritius, and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for 2016, by Private Equity International. The Everstone Group follows an active and operational investing style and has a history of building large-scale businesses. The group has stakes in several businesses in consumer categories including, but not limited to, Modern Foods, Ritu Kumar, S Chand Group, Ozone, Burger King India, Burger King Indonesia, Domino’s Indonesia, and several marquee restaurant brands. Everstone also has a fully integrated real estate development platform and is India’s largest developer of industrial real estate through IndoSpace.
For more information, visit www.everstonecapital.com
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About Kenstar
Launched in 1996 with the promise of bringing “the way the world lives” into India, Kenstar is one of the leading household brands focused on climate control categories such as Air Coolers, Air Conditioners, smart ceiling fans, and a vibrant range of home appliances, including Mixer Grinders, Juicer Mixer Grinders, Food Processors, Hand Blenders, Juicers, Electric Kettles, Oxy Fryer, Pop-Up Toasters, Microwave Ovens, Induction Cooktops, Water Heaters, Irons and Smart Ceiling Fans. Distributed nationally at over 15,000 points of sale, with 1000+ trade partners, Kenstar is a No. 2 brand nationally in Air Coolers, with a No. 1 or strong No. 2 position in all regions other than North India.