Walton Hi-Tech Acquired Three European Brands

Walton Hi-Tech to Acquire Three European Brands

Walton Hi-Tech Industries PLC has won the bid to acquire three European brands and the trademark and branding rights in 57 countries, beating out two renowned companies. This makes the local electronics giant the first Bangladeshi company to buy any European brand. The three brands are ACC, Zanussi Elettromeccanica (ZEM) and Verdichter (VOE).

Walton will also get research and development and intellectual property rights for winning the contract from Italia Wanbao-ACC of Italy. According to a press release, it will buy a fully automated inverter and non-inverter compatible compressor line with a capacity of 32 lakh units per year, taking its manufacturing capacity to 48 lakh units. In a disclosure on the Dhaka Stock Exchange yesterday, the company said, “This will establish a significant market share in Europe and other markets,”

This news increased the prices of Walton shares up to 0.10 percent to Tk 1,081. The board has unanimously approved the procurement plan and has also decided to open a subsidiary company, branch, or liaison office in Europe and the US.

Walton signed a contract with ACC last week. Walton will use ACC and two other brands from next week to market ACs, freezes, washing machines, and other appliances in all 57 countries. Golam Murshed, managing director and chief executive officer of Walton Hi-Tech Industries, said, “These brands will help us a lot in the global market,” adding that Walton will also market the ACC brand in Bangladesh.

The compressor manufacturing unit will make energy-saving compressors. Golam Murshed said, “This will enhance our compressor-making capacity, which will increase our exports earnings and contribution to the economy.”

Currently, exports account for nearly 20 percent of its total turnover of Walton. The local home appliance giant presently exports televisions, freezes, air conditioners, compressors, and compressor parts to 45 countries in Asia, Europe, the Middle East, Africa, and America.

“We now expect our sales to surge in the European and American market by the end of this year,” Murshed said. The home appliance maker posted a Tk 1,639 crore profit after-tax in 2020-21, compared to Tk 726 crore.

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