Whirlpool India has secured long-term brand and technology licenses to drive growth. These agreements with Whirlpool Properties, Inc. and Whirlpool Corporation will support innovation and expansion into new segments. Key agreements include a brand license (BLA), technology license (TLA), services agreement, transitional services agreement, and intellectual property assignment. The deals promote continued growth and are at market rates.
Brand License Agreement (BLA)
Whirlpool has secured a long-term exclusive brand license from Whirlpool Properties, Inc., granting rights to use the ‘Whirlpool’ brand and name in existing and new segments. This covers India, Afghanistan, Bhutan, Maldives, Myanmar, Nepal, and Sri Lanka. Royalty rates for major domestic appliances are initially 1% of net sales, increasing over time. The guaranteed minimum royalty starts at USD 6,000,000 per year.
Technology License Agreement (TLA)
The technology license from Whirlpool Corporation provides exclusive access to technical know-how and Licensed IP for major domestic appliances. Royalty rates begin at 0.60% of quarterly net sales. The agreement includes territorial use limitations and provisions for the allocation of ownership of improvements.
Services and Transitional Agreements
A Services Agreement, effective until March 31, 2029, replaces the existing annual agreement and includes a pre-agreed minimum service charge. A Transitional Services Agreement (TSA) ensures a smooth transition, managing services provided to and received from Whirlpool Corporation. For services provided by Whirlpool Corporation to Whirlpool India, annual fee is US Dollars Three Million (USD 3,000,000) from April 1, 2026. For services rendered by Whirlpool India to Whirlpool Corporation, the amount from April 1, 2026 to March 31, 2027 is US Dollars One Million Seven Hundred Thousand (USD 1,700,000) per annum.
Intellectual Property Assignment
An IP Assignment Deed assigns patent and design registrations within the relevant territory to the Company. The consideration for the assignment of Indian patents and designs under the IP Assignment Deed is a nominal amount of US Dollars Twenty (USD 20)
Amendment to Articles of Association
Subject to shareholder approval, the Board has approved amendments to the Articles of Association, specifically deleting Articles 4, 4A, and 108A. These articles relate to financial and technical collaboration, trade name usage, and ICICI Bank loan provisions, which are now considered redundant.
Source: BSE
