New Delhi: Swedish multinational Electrolux AB has sold the home appliances brand Kelvinator in India to Reliance Retail Ltd. This step is after a licensing agreement that was signed in 2019, where Reliance had exclusive rights to manufacture and distribute Kelvinator products in India. Reliance with this absorption consolidates its presence in consumer electronics, where it already operates more than 400 Reliance Digital stores across the country.
Kelvinator is a brand that dates back to the early 1960s in India and was a household name in the fridge industry. The buyout now places the brand fully into the ownership of Reliance, and it will be able to streamline and expand operations within its omnichannel retail stores.
A brand with a Legacy
Kelvinator was a household name in India of the 1970s and 80s with the slogan The Coolest One. Whirlpool had previously acquired the brand in 1995 to enhance its business in India in refrigerators. In 2019, Kelvinator returned to the Indian market by the brand licensing agreement of long-term manufacturing, marketing, and distribution rights between Reliance Retail and Electrolux.
The product ranges now consist of refrigerators, washing machines and air conditioners, which are sold through Reliance Digital and other channels. In their entire possession, Reliance is likely to increase the product and market base of Kelvinator.
Strategic push into consumer durables
Reliance Retail Ventures Ltd (RRVL) executive director Isha M. Ambani said the acquisition is a pivotal moment. It enables us to increase our offering of credible global innovations to the Indian consumers. She further stated that the step would allow more consumer connection and a faster category.
The Indian consumer durables market is also set to witness significant growth and is expected to be 3 trillion by 2029 with a CAGR of 11% in the estimate of the EY report 2024. Reliance wants to have a large share of this expansion with a combination of the legacy of Kelvinator and its comprehensive retail network.
Part of a larger retail ecosystem
Reliance Retail as a group has more than 19,000 stores operating in India in different categories, including grocery stores, fashion stores, electronics stores and pharmacy stores operated through the different subsidiaries. Reliance Retail Ltd has a consolidated turnover of 3,30,000 crore and EBITDA of 25,053 crore in the financial year ending 31 March 2025.
Since Kelvinator in its entirety has been a part of its ecosystem, Reliance Retail is still in the business of acquiring established brands to consolidate its place in the fast-growing Indian retail sector.