A household name, a PE giant, a star CEO. What more does Eureka Forbes need?
The post A household name, a PE giant, a star CEO. What more does Eureka Forbes need? appeared first on The Ken .
Eureka Forbes, a leading player in India’s home appliances market, has faced challenges despite its innovative products and strong financial performance. The company, once a pioneer in water purifiers, saw its market capitalisation lag behind the growth of its profits after being acquired by American private-equity firm Advent International in 2022.
Advent's acquisition provided a significant boost to Eureka Forbes, with the company’s profit rising from Rs 30 crore in FY23 to Rs 160 crore in FY26, and revenue increasing from Rs 2,100 crore to Rs 2,700 crore. The operating profit margin improved from 4.5% to 13%, and the firm became debt-free. However, the acquisition also brought new challenges, particularly in the area of after-sales service.
Eureka Forbes has traditionally relied on franchise partners to handle after-sales service, which has allowed new players like Urban Company to flourish in this space. The company has been working on tightening up its service operations, but maintaining consistency in goals and actions remains a recurring issue. Each quarter, management seems to introduce new action points, sometimes even on a weekly basis, causing confusion and difficulty in execution.
This constant shifting of objectives adds to the company's predicament and makes it harder for investors and stakeholders to understand its strategy and progress.
Written by urgent.news from The Ken's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.