Hindware Home Innovation announces demerger and amalgamation scheme to create two listed companies

Hindware Home Innovation Limited on Thursday announced a composite scheme of arrangement to demerge its entire consumer products business into a newly created subsidiary, HHIL Limited, and merge the remaining assets and liabilities of the Company into its other subsidiary, Hindware Limited, which focuses on the building products business.

The consumer products business includes kitchen appliances, consumer appliances, fixtures and fittings, and water heaters while the building products includes sanitaryware, faucets, tiles, and plastic pipes & fittings, operated through its subsidiary, Hindware Limited.

After the implementation of the scheme, a shareholder of the Company holding one share in the Company will be allotted one share of HHIL Limited and one share of Hindware Limited.

The appointed date of the scheme is April 1st, 2025, and is subject to the applicable approvals, including those of the shareholders and creditors of the companies involved, as well as the approval of the Hon’ble National Company Law Tribunal, having jurisdiction over the companies involved in the Scheme.

Subsequently, HHIL Limited and Hindware Limited shares will be listed on stock exchanges and Hindware Home Innovation Limited as a Company will cease to exist.

“This strategic Scheme is designed to unlock significant shareholder value by capitalizing on the distinct characteristics of each business, including differing distribution channels, competitive landscapes, capital requirements, and investor profiles. This restructuring will enable focused growth, attract targeted investment, enhance operational efficiency, and improve management visibility,” Sandip Somany, Chairman, Hindware Home Innovation Limited said after the announcement of the scheme.

The Hindware stock closed at 193.80 on Thursday, up by 2 points or 1.04% on BSE.