Whirlpool of India Ltd

Chairman's

Message

Amidst a challenging external landscape in FY 2023-24, Whirlpool India remained steadfast on its growth trajectory. Despite facing subdued demand, new energy and regulatory norms for refrigerators, and pricing pressures, the Company's consolidated revenue and profitability grew marginally by 3% compared to the previous year. These accomplishments were made possible through the dedicated efforts of the entire organization in pursuing its strategic imperatives focused on product innovation, execution excellence, premiumization, and cost efficiency. Effectiveness of the Company's leadership and management team in navigating challenges and capitalizing on opportunities in the market is evident in these results. Their commitment and strategic foresight have been pivotal in steering us through uncertain times while maintaining our growth trajectory. Looking ahead, with the Company steadfastly executing its clearly defined strategies and actions, I am optimistic about the continued momentum of our business. The Company remains committed to growing sustainably and profitably, delivering value to shareholders and stakeholders alike.

Managing Director's

Message

Dear Shareholders,

As I reflect on my first year

Director of your Company, I would like to start by thanking you for giving me the opportunity to be a part of this remarkable organization. It gives me great pleasure to present the Annual Report of Whirlpool of India Limited for the fiscal

2023-24.

Looking back at the past year, I would describe our business performance as a robust turnaround, particularly considering the challenging dynamics of our industry. The Indian market presents intense competition and evolving consumer sentiment, which we have navigated with resilience. As we move forward I believe we have the right strategic imperatives and operational priorities to accelerate our growth, enabling both net sales growth driven by market share growth and profit margin expansion.

In FY 2023-24, the consumer durables industry grew single digit, driven by premiumization, after experiencing a significant

FY 2022-23, indicating a post-pandemic recovery.

Growth this fiscal was primarily fueled by the focus on premium products, such as appliances featuring

smart technologies, larger capacities, and energy-efficient attributes. Air conditioners, a low penetration category, showed robust double-digit growth, while washers, which have slightly higher penetration, grew at a mid-single-digit rate. Conversely, the refrigerator industry, the most penetrated category, hardly grew, facing considerable challenges during the year.

This period also saw major regulatory changes with the adoption of global standards and upgrades to energy and safety norms. While meeting these standards required substantial investments, overall, these initiatives are expected to elevate industry standards in India and support our ambition to manufacture world-class products under the Make-in-India initiative.

In this context, the financial performance of your Company was quite literally a tale of two halves. Although the first half experienced a decline in income and profit before tax, the second half witnessed high single-digit revenue growth driven by significant and profit margin improvement, culminating in positive overall results for the year. Consolidated total income for FY 2023-24 grew approximately by 3% compared to the previous year, and consolidated profit before tax (excluding exceptional items) increased by 9.8% year-over-year. While the first half declined 3.6% on revenue and 16.7% on profits, the second half grew 9.9% in revenue and 51% in profits before tax (before exceptional items) driven by strong growth in market shares and success of the P4G (productivity for growth) profit improvement program. This success, despite intense competition, is testament to the clarity of the new strategic imperatives as well as their excellent execution, delivered by the focus and dedication of our employees, whose commitment to the "Whirlpool spirit of winning" drives our Company forward.

As I alluded to earlier, demand for premium, feature-rich consumer durables is steadily increasing due to fast-paced lifestyles and evolving preferences. The emergence of new technologies and sustainable features will be the key growth drivers. This bodes well for us as our renewed focus on research and development, coupled with our deep consumer insights, has enhanced the prominence of our premium product portfolio.

Over the last 12 months, the Company has made a strategic shift towards premiumization, with a keen focus on scaling up new offerings in the premium segments, enhancing existing mass-premium products, and integrating cutting-edge 6^th Sense intuitive technology across its product lines. Catering to the growth of high capacity refrigerators, the Company has been scaling up the Intellifresh Pro series of frost-free refrigerators, showcasing 6^th Sense Intellifresh Technology. Designed with a contemporary aesthetic to appeal to the discerning tastes of premium clientele, this high-tech lineup introduces never-before-seen features like the revolutionary 10-in-1 Convertible mode, that converts the freezer to refrigerator in just 22 minutes. Further, premiumization of the mass segments have also been fueled with the recent launch of the all new range of IceMagic Pro Glass Door range of Direct Cool refrigerators.

In recognition of our commitment to creating world-class refrigerators, I am immensely proud that our innovative and energy-efficient direct cool refrigerator (DC 215L) model received the "Appliance of the Year - Refrigerator category" award at the prestigious National Energy Conservation Awards (NECA). The award was presented by Her Excellency, the Honorable President of India, Smt. Droupadi Murmu.

Last year we augmented our washing machine portfolio with the launch of the made-in-India XpertCare range of Front Load Washing Machines. The XpertCare range features the breakthrough Ozone Air Refresh technology that enables our consumer to ozone-refresh their cherished clothes without using any detergent or water. Also, our StainWash range of top load fully automatic washing machines received the iF Design Award.

Highly confident of our quality build on our recently launched front loaders, during the year, we extended the comprehensive warranty period of our front loading washing machine range to "5 years" making it the best-in-class warranty offering in the market.

Furthermore, to enable penetration of washing machines, we have leveraged our extensive product development experience combined with world class manufacturing standards to extend the promise of durability for the Semi-Automatic Washing Machine buyers. For a long time, semi-automatic washing machine users have struggled with detergent patches left on clothes due to improper mixing during the wash cycle. To address this, in 2024 we introduced our innovative, patent-pending Dynamix Technology in the premium Ace XL series, ensuring Zero Detergent Patches. The Dynamix detergent dispenser, powered by a dynamo, vigorously mixes detergent and water, preventing any coagulation during the wash cycle. Further, the launch of the all new 4 year comprehensive warranty on all semi-automatic washing machines from January 2024 is aimed to strengthen peace of mind and is driving competitive advantage through enhanced trust in the minds of the consumers.

It's also noteworthy that with the rising demand for home comfort, air conditioners are becoming increasingly essential. As disposable income grows, Indian households are more willing than ever to invest in products like air conditioners. Recognizing this trend, we have introduced an exciting new range of air conditioners designed to deliver exceptional performance in hot and challenging conditions.

Along with strengthening our Product Portfolio, one of our most important strategies is to achieve excellence been madein execution. Significant across the organization to strengthen our journey towards executional excellence: Step-change in front end investments with a special focus on retail executives quantity and quality, use of generative artificialintelligence to scale up field training, revamping of measurement systems along with a major re-engineering of Field Sales Rewards programs as well as focusing on higher margin portfolio to name a few. These changes have set the foundation for driving our business transformation and will bear fruit for years to come. investments have been made in our

In 2024, we expect that a stable economy coupled with controlled inflation, a hotter than normal summer season and effect of general elections closure will drive a spurt in consumption. In addition, our efforts will be to strengthen the market share momentum we have been able to generate on both washers and refrigerators in the last few months. This sets the stage for broad basing the K-shaped recovery and re-establishing penetration growth for the mass segment on top of the ongoing growth in the high capacity refrigerator and washing machine segments.

During the year, our integrated supply chain teams made significant supply chain. We adhere to world-class manufacturing (WCM) practices, ensuring our products meet the highest standards of quality. I am pleased to share that all our plants have achieved the Bronze level in the WCM journey.

This milestone reflects our continuous commitment to driving quality improvements and operational excellence, ensuring a safe and ergonomic environment for our workforce. We will persist in advancing our WCM journey, further enhancing the quality of our products as we move forward.

We take pride in our Productivity for Growth (P4G) program, a comprehensive cost leadership initiative.

This robust program delivers cost efficiencies across all lines of the P&L, helping us improve gross margins and maintain control over both fixed and variable costs.

Through close monitoring and a collaborative approach, the P4G program ensures that we remain competitive and financially strong.

Furthermore, our subsidiary Elica PB Whirlpool has significantly strengthened our presence in the cooking appliances segment. Elica PB Whirlpool's reputation for innovative local manufacturing and a robust distribution network has solidified its market position. Our goal is to establish ourselves as a mass premium cooking brand, with two distinct brands under one umbrella. With a steadfast focus on quality, cutting-edge innovation, and calibrated investments in brand building and operational excellence, we are well-positioned for good growth in the coming years. During the financial year, the success of

Elica PB Whirlpool cooking business, with notable revenue growth of 8% and profit before tax growth by 40%, added to the overall positive performance of the Company.

Our employees are pivotal to Whirlpool's success.

Significant capital to create a fair and conducive workplace where employees can thrive. Inclusion and Diversity (I&D) are at the heart of our strategy, as we believe diverse perspectives drive innovation and success. Our unique Company Leadership Model fosters the winning Whirlpool spirit in our teams through structured programs led by the Whirlpool India Leadership team. Our social responsibility initiatives are aimed at benefiting our communities and society at large.

We believe that Environmental, Social, and Governance (ESG) principles will generate long-term value for our stakeholders. Our responsible practices ensure that we minimize our environmental footprint, operate sustainably, and contribute positively to society. We strive to develop products that are not only innovative but also sustainable, ensuring a better future for our planet.

None of our achievements would be possible without the steadfast support of all our stakeholders and I take this opportunity to express heartfelt gratitude to our valued investors, stakeholders including fellow Board members and our Chairman, our leadership team, our employees, our suppliers, our customers, distributors and retailers for their continued trust and support. I look forward to our continued journey together.