MUMBAI: Reliance Retail has acquired home appliances brand Kelvinator for India from Sweden’s Electrolux as it looks to expand market share in the consumer durables space, stepping up competition against global and local giants such as Samsung and Tata’s Voltas in the market. Reliance Retail has been holding manufacturing and distribution rights for the brand in India since 2019 through a licensing deal signed with its Swedish owner. The company did not disclose the financial specifics of the deal. In an earnings update, Electrolux, however, said that it has realised a gain of about $18.5 million (around Rs 160 crore) from the divestment of the Kelvinator brand in India. Alicensing deal is typically signed for a certain period of time; a full acquisition expands a company’s scope and coverage for the brand.

1st entered in 1960s

Kelvinator first entered India in 1960s and became popular in the local market in the 1970s and 80s before competition in the space intensified. The brand has had a chequered history in India — Whirlpool for India acquired the brand in 1995 to access the refrigerator category. Later, it went on to get acquired by Videocon in the mid 2000s, eventually being relaunched by Reliance Retail in 2019. One of Reliance’s key growth strategies has been to revive iconic brands and launch them in the market. Before Kelvinator, it has acquired homegrown brands like Campa and Velvette. Besides, Reliance Retail through its subsidiary Reliance Brands has also been building a portfolio of global labels as more consumers with higher disposable incomes seek better choices. In 2019, Reliance Brands acquired Hamleys marking the first acquisition of a global retail brand.