Hindware Home Innovation Limited (HHIL) has reached a significant milestone in its corporate restructuring process. The company announced that it has received approval from the Bombay Stock Exchange (BSE) for its composite scheme of arrangement, marking a crucial step forward in its strategic plans.

BSE Approval Details

The company disclosed that it received a letter dated August 28, 2025, from BSE Limited, conveying 'no adverse observation/no objection' regarding the proposed scheme. This approval allows Hindware Home Innovation to proceed with filing the draft scheme with the National Company Law Tribunal (NCLT).

Scheme of Arrangement

The composite scheme of arrangement involves:

1. Hindware Home Innovation Limited (referred to as the Demerged Company/Remaining Transferor Company)
2. Hindware Limited (the Transferee Company)
3. HHIL Limited (the Resulting Company)

This scheme is structured under Sections 230 to 232 of the Companies Act, 2013, and aims to reorganize the company's business structure.

Next Steps

While this BSE approval is a significant development, Hindware Home Innovation is still awaiting similar approval from the National Stock Exchange of India Limited (NSE). The company stated that it will initiate the process of filing the scheme with the NCLT in Kolkata once it receives the observation letter from NSE.

Regulatory Compliance

In compliance with regulatory requirements, Hindware Home Innovation has made the BSE approval letter available on its website at www.hindwarehomes.com . This move ensures transparency and keeps shareholders and other stakeholders informed about the progress of the scheme.

Looking Ahead

The effectiveness of the scheme remains subject to several factors, including:

• Approval from the NCLT
• Other necessary regulatory approvals

Investors and stakeholders of Hindware Home Innovation will be keenly watching for further developments, particularly the pending NSE approval and subsequent NCLT filing.

This corporate action represents a significant step for Hindware Home Innovation, potentially reshaping its corporate structure and operations.

Hindware Home Innovation Limited has reported its financial results for the first quarter, revealing a strategic shift in its business focus and a mixed performance across its segments.

Financial Highlights

The company reported consolidated revenue of INR 531.00 crores and EBITDA of INR 58.00 crores for Q1. This performance comes amidst significant changes in the company's product portfolio and business strategy.

Strategic Restructuring

In a notable move, Hindware Home Innovation has announced the strategic discontinuation of several high loss-making product categories. These include:

• Air coolers (except for e-commerce channel)
• Ceiling fans
• Air purifiers
• Water purifiers
• Furniture fittings

This decision is aimed at sharpening the company's focus on its kitchen appliances segment, which includes chimneys, hobs, and cooktops.

Segment Performance

Bathware Business

The Bathware segment showed positive growth and margin improvement initiatives. The company is implementing a comprehensive strategy to enhance growth, profitability, and margins in this segment.

Consumer Appliances

This segment's performance reflects the recent portfolio rationalization. The company is now focusing on kitchen appliances, which are showing growth and improved profitability.

Pipes Business

The Pipes segment faced challenges due to raw material price volatility and early monsoons. However, the company expects improved performance in the second half, with the Roorkee plant set to commence commercial production.

Future Outlook

Hindware Home Innovation's management has outlined several key initiatives and expectations:

1. The Bathware business is targeting mid-teens EBITDA margins.
2. The company expects improved overall performance in the second half.
3. The demerger approval process is anticipated to complete within 8-12 months after SEBI clearance.

Management Commentary

Nirupam Sahay, CEO of Bath and Consumer Appliances Business, stated, "We expect accelerated growth on the quarterly number from this quarter itself. We've already seen a move to positive growth in quarter 1. We expect acceleration based on all the initiatives that we've taken on distribution, on product, on influencers and on brand building."

Rajesh Pajnoo, CEO of Pipes Business, commented on the segment's performance, saying, "We are confident that these strategic initiatives, combined with capacity expansion and portfolio diversification will drive profitable growth as we move forward."

The company's strategic restructuring and focus on core profitable segments indicate a clear direction towards improving overall performance and shareholder value in the coming quarters.