Salton may buy into Softel, launch appliance brands
Softel Machines, which is known for its Minerva brand of water purifiers, is now negotiating with the $250-million Salton Holdings of the US for selling a majority stake in the company.
By Tapash Talukdar, TNN |
GANDHIDHAM: Softel Machines, which is known for its Minerva brand of water purifiers, is now negotiating with the $250-million Salton Holdings of the US for selling a majority stake in the company.
Salton is a leading designer, marketer and distributor of a broad range of branded, high-quality small appliances under the brand names of Salton, George Foreman, Toastmaster, Breadman, Juiceman, Juicelady, White-Westinghouse and Farberware amongst others.
Softel MD Anil Kumar Jain said talks are on and a deal is expected to be finalised in a few months’ time. “The US company will take a stake in excess of 51%, but the final amount and the price have yet to be decided,” said Mr Jain.
He said Softel has so far focused only on the Gujarat market with its water purifier, ice-cream maker, soda maker, hand blender, popcorn maker and atta kneader.
“Once Salton takes a majority control, the company will go national with a range of products from the US company. Due to strong competition from cheaper Chinese products it is very difficult to survive in the kitchen appliances market in India,” he added.
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Salton has manufacturing facilities in China from where it sources its products and then puts its own brands and sells them. Similar strategy is going to be adapted in India too. Products are to be made in China with the US specifications and sold in India, said Mr Jain. Softel’s current sales stand at around Rs 12 crore with nearly half of them coming from its Minerva brand. “I cannot say anything about the possible valuations as it would be too premature. But, the company would see exponential growth if Salton were to take control,” he said.
However, he also said Salton is taking its time as several multinationals like Moulinex had entered this segment in India some years back and had then withdrawn as they did not find operations viable here.
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