Hindware Home Innovation Limited , through its joint venture Hintastica Private Limited (HPL), has signed an asset sale agreement with Ariston Water Heating Products India Private Limited. The deal involves the sale of HPL's manufacturing assets in Telangana for INR 116.00 crore, marking a strategic shift towards an asset-light model for the company.

Key Details of the Asset Sale

Strategic Implications

HPL, which has been producing electric storage water heaters since 2023, plans to continue its operations in the water heater business while adopting an asset-light strategy. This move is expected to:

1. Enhance operational flexibility
2. Strengthen the company's balance sheet
3. Allow focus on market development and product innovation
4. Expand consumer reach

Future Plans

Post-sale, Hindware Atlantic intends to:

• Source part of its future product range from the Telangana facility
• Leverage Groupe Atlantic's technical expertise in heating solutions
• Utilize Hindware's extensive distribution and dealer network
• Maintain its leadership in bath and kitchen solutions

Impact on Stakeholders

The company has assured that this strategic shift will not affect its distribution, policies, or team structure. Partners and customers can expect:

• Continuous innovation
• Uninterrupted product availability
• Maintenance of high-quality standards
• Reliable and continuous service

This move by Hindware Atlantic represents a significant step in its business strategy, aiming to optimize its operations while maintaining its market presence in the competitive water heater industry.

Hindware Home Innovation Limited , a prominent player in the home appliances and building products sector, has received a significant tax demand from the Maharashtra state tax authorities. The company is now grappling with a ₹1,00,43,587 demand order issued by the Deputy Commissioner of State Tax in Bhiwandi-503, Raigad, Maharashtra.

Breaking Down the Demand

The tax demand comprises three main components:

Allegations by Tax Authorities

The state tax authority has raised several concerns regarding Hindware's tax practices:

1. Improper reduction of tax liability through credit notes for sale cancellations
2. Availment of ineligible input tax credit
3. Delayed payments to trade payables beyond the 180-day limit

Company's Response

Hindware Home Innovation Limited has taken a firm stance on the matter, stating that the demand order was issued without due consideration of their submissions. The company believes that the tax demand is not maintainable under the circumstances.

Next Steps

In light of this development, Hindware is taking a cautious approach:

1. The company is currently in consultation with its legal advisors.
2. They are evaluating the demand order in detail.
3. Based on the evaluation, Hindware will determine the appropriate course of action to address this tax issue.

This tax demand comes at a time when many companies are facing increased scrutiny from tax authorities. The outcome of this case could have implications not only for Hindware but also for other businesses operating in the state of Maharashtra and potentially across India.

As the situation unfolds, stakeholders will be keenly watching how Hindware Home Innovation Limited navigates this tax challenge and what impact it may have on the company's financial position and operations.