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India Inflection Opportunity Fund (IIOF) Acquires 5% Equity Stake in Vardhman Appliances Limited

India Inflection Opportunity Fund Acquires 5% Stake in Vardhman Appliances Limited


India Inflection Opportunity Fund (IIOF) Acquires 5% Equity Stake in Vardhman Appliances Limited

Vardhman Appliances Limited, a renowned Delhi-based manufacturer in the consumer appliances segment, has successfully closed its Pre-IPO placement round. The India Inflection Opportunity Fund (IIOF) has acquired approximately a 5% equity stake in the company for an undisclosed amount, signaling a significant vote of confidence in Vardhman’s growth trajectory and market potential.

A Legacy of Excellence in Manufacturing

Vardhman Appliances Limited stands out as a premier manufacturer of consumer appliances in India, known for its enduring products and a loyal customer base that spans the entire country. The company’s products are both ISO 9001 and BIS certified, leveraging unique manufacturing technologies that are highly regarded by prominent OEM/ODM clientele.

Financial Strength and Growth

Demonstrating a robust financial foundation, Vardhman has achieved an approximate top line of Rs. 1000 crores, with a compound annual growth rate (CAGR) of 18% from Fiscal 2021 to 2024. The company boasts impressive return ratios, including a Return on Equity of 28% and a Return on Capital Employed of 34%, along with a Fixed Asset Turnover of 14.6x. These metrics highlight Vardhman’s efficient operations and strong financial health.

The company operates five state-of-the-art manufacturing facilities located in Kundli (Haryana) and Baddi (Himachal Pradesh), ensuring high production standards and capacity to meet growing demand.

The Rise of Lazer

Beyond its OEM/ODM business, Vardhman has successfully marketed and sold products under its own brand, “Lazer.” Over the past decade, Lazer has established itself as a leading brand, now present in over 20 states with eight branch offices. The brand offers a diverse portfolio of over 200 SKUs across various categories, supported by a seamless supply chain and a meticulously organized pan-India distribution network. This network includes over 1000 distributors and dealers, 15,000 retailers, as well as robust online and institutional sales channels.

Lazer’s success is further bolstered by a strong service franchise network, spread over 300 locations across India, ensuring seamless service for customers and reinforcing brand loyalty.

Leadership and Vision

Vardhman Appliances is promoted by Mr. Parmod Kumar Jain, an engineer by profession and a visionary leader. His strategic market understanding, innovative approach, and commitment to excellence have played crucial roles in the company’s competitive edge. Mr. Jain’s leadership is characterized by a dedication to ethics, adaptability, and continuous improvement, driving the company’s resilience and prosperity.

Strategic Partnership with IIOF

The investment by IIOF marks a strategic partnership aimed at fostering new opportunities and sustainable growth. Speaking about the investment, Ms. Madhu Lunawat, CIO of India Inflection Opportunity Fund, expressed enthusiasm about joining forces with Vardhman. “We are excited to be a part of Vardhman Group, which has over four decades of experience in manufacturing consumer appliances. United, we can foster a thriving and resilient environment, paving the way for new opportunities and sustainable growth. With exceptional execution capabilities, supported by a professional team with a clear vision and strong leadership, we recognize significant growth prospects in Vardhman.”

IIOF has established itself as a prominent fund house in the mid-market sector, focusing on investing in profitable companies at the growth stage. The fund is known for its commitment to environmentally responsible businesses and asset-backed investments.

A Shared Vision for the Future

Mr. Parmod Kumar Jain, Chairman of Vardhman, shared his vision for the future during the announcement. “Our vision is to tackle real-time problems with top-quality products that make a difference. Every day, we embrace new ideas and seek continuous improvement, supported by a team of dedicated professionals. We’re committed to delighting our customers and building lasting relationships with our partners and team members. By upholding the highest ethical standards and focusing on customer satisfaction, we drive collective success and create long-term value for everyone involved.”

He added, “By combining our market expertise with IIOF’s robust financial backing, we are well-positioned to maximize shareholder value and drive sustainable growth. This collaboration sets the stage for creating long-term economic value, ensuring a prosperous future for all stakeholders involved.”

As Vardhman Appliances Limited embarks on this new chapter with IIOF, the partnership promises to enhance the company’s growth prospects, further solidifying its position as a leader in the consumer appliances market and delivering sustained value to all stakeholders.

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