Amber Enterprises gains 6% on agreement to acquire 50% stake in JV with Resojet for ₹35 crore

Shares of Amber Enterprises India, a leading player in the consumer durables space, rallied 6.3% to touch the day's high of ₹3,425.65 apiece on the NSE on Wednesday after the company announced signing a joint venture (JV) agreement with Resojet Pvt Ltd.

Amber Enterprises India entered into a 50% joint venture with Resojet Pvt Ltd, a Telangana-based original equipment manufacturer. Resojet is part of the Radiant Group, one of the leading solution providers in manufacturing fully automatic front-load and top-load washing machines.

In a filing to the exchanges, Amber Enterprises India said the company has further "expanded its consumer durables division" by entering into a JV with Resojet.

This joint venture will boost Amber Enterprises' diversification plans beyond air conditioners, into the washing machine and its component segment. With this, the company will solidify its position within the consumer durables market, Amber Enterprises informed the bourses.

Amber Enterprises will invest ₹35 crore in Resojet to acquire 50% stake in the JV company, subject to completion of condition precedent as per the definitive agreements, the exchange filing mentioned.

Speaking on the JV with Resojet, an Amber Enterprises India spokesperson said that the partnership is a significant step forward for the company as it continues to expand its presence in the consumer durables market.

"By partnering with Resojet, we gain access to their expertise in manufacturing washing machines, allowing us to offer a wider range of high-quality products to our customers, the spokesperson added.

The Amber Group is a diversified manufacturing major that operates across three business verticals spanning consumer durables, Electronics (EMS), and railway subsystems and mobility.

Shares of Amber Enterprises India closed 5.04% higher at ₹3,385 apiece on the NSE.