PG Electroplast Confident Of Maintaining 40% CAGR In Washing Machine Biz After Whirlpool Deal

PG Electroplast is confident of maintaining its CAGR growth of around 40% in its washing machine manufacturing business on the back of increased demand, the company’s Managing Director Vikas Gupta told NDTV Profit.

Gupta’s comments come days after PG Electroplast signed a deal with Whirlpool India Ltd. to manufacture semi-automatic washing machines for the company. Under the agreement, PG Electroplast, which is already a supplier of Whirlpool air conditioners, will manufacture some of the SKUs for Whirlpool at its factory in Uttarakhand’s Roorkee.

Commenting on the company’s washing machine manufacturing business, Gupta said that the segment for PG Electroplast had grown at a rapid pace in the last few years.

“When we see a washing machine as a business, it's a business that has been growing for us in the last seven or eight years, and it has grown at a very rapid clip,” he said.

With demand being up over the past few years, the company expects to maintain its compound annual growth rate (CAGR) at 35-40% for the next two to three years.

“We are hopeful that we should be able to continue CAGR growth of almost 35% to 40% in the washing machine category for the coming two to three years as well,” Gupta noted.

The top executive also mentioned that the Whirlpool deal will boost PG Electroplast’s revenue numbers.

“Whirlpool is an addition to our longest clients for whom we are already making washing machines. This deal with Whirlpool will further boost our washing machine revenue numbers for FY26,” he said.

“We are very bullish on this story because it emphasises and further strengthens our belief that the outsourcing story is going to grow further,” Gupta added.
While the MD claimed that the revenues would get a boost after the Whirlpool deal, he did not revise any guidance for FY25.

“Whatever update on the revenue guidance will be coming, it will be coming only once we release the results for Q3 of FY25,” he said.

This is because PG Electroplast expects to start production of the washing machines in FY26.

“We are hoping to start production under this contract by the first quarter of the beginning of the next financial year. And I think the overall numbers will be captured only in FY26. In FY25, we don't see any impact of this deal on our guidance,” Gupta explained.

Shares of PG Electroplast Ltd. closed 0.26% lower at Rs 964.10 on the NSE on Thursday, while benchmark Nifty 50 ended 0.1% higher at 23,750.20 points.