Reliance Retail Limited and the homegrown consumer appliances major Havells India Limited (NSEI:HAVELLS) would compete with several bulge-bracket buyout funds, multiple people told ET, to acquire a controlling interest in Whirlpool of India Limited (BSE:500238), the locally listed arm of the Michigan-based company that was once the world?s largest appliance maker by sales. These two companies are competing with financial sponsors EQT AB (publ) (OM:EQT) and Bain Capital, LP, who have also been shortlisted after the initial round of screening. TPG Capital (TPG Capital, L.P.) is also among those initiating the due diligence, said the people mentioned above.

Whirlpool Corporation (NYSE:WHR) is looking to sell 31% stake in Whirlpool of India, which generates 85% of its Asia revenue, while retaining a 20% equity stake in the company. The equity in India is held through Whirlpool Mauritius Ltd. The monetisation exercise is part of a global reorganisation initiated at the end of 2022 when the company, synonymous in the US with its namesake brand as well as KitchenAid and Maytag products, posted a $1.5 billion loss. It has already reshaped its global portfolio pruning operations in key Asian markets and in pockets of Europe.

Whirlpool Corp. has also heightened efforts to cut costs and its workforce. The company is simultaneously focusing on selling smaller home appliances like blenders and coffee makers ?

to overhaul its more than century-old business?as consumers pull back on large purchases. The company said it is keen to raise net cash proceeds of $550 million-$600 million (INR 46,840 million-INR 51,100 million) from the transaction. A formal stake-sale process was launched in April by the company?s advisor Goldman Sachs.

The change of control transaction will also trigger an open offer for an additional 26% stake from public shareholders of the company. If fully subscribed to, the incoming investor could end up owning 57% of the company. Public shareholders own 49% of the company.

ET in its edition dated April 29 had reported PE funds like Bain, Carlyle, KKR among others were evaluating the opportunity. The high valuations have seen some interest taper, added people in the know. Emails sent to Whirlpool Corp, Reliance Retail and Havells remained unanswered until the publication of this report.

TPG, Bain, EQT declined to comment.