Merloni Elettrodomestici, the Italian appliance manufacturer, today makes a symbolic name change to Indesit. It is rare in Italy for a company to ditch the name of its controlling family.
Merloni has taken the view that it should be named after one of its top brands as it strives to increase its international presence. The group’s brands include the Ariston and Hotpoint.
For Vittorio Merloni, chairman and son of the company’s founder, the name is holding back the company from international recognition. “Almost all our competitors are named after brands. Nobody knows who Merloni Elettrodomestici is. It’s very difficult to pronounce outside Italy.”
Merloni fully acquired the Hotpoint brand in the UK in 2002 after long negotiations with Marconi and General Electric. The company has a market capitalisation of about €1.4bn ($1.8bn) and annual sales of more than €3bn, twice the level of four years ago. It is one of the top three manufacturers of white goods in Europe with a 15.5 per cent market share.
“It’s difficult to lose the family name but the company belongs to everyone, including our customers and suppliers,” Mr Merloni said.
Merloni, which is publicly quoted, will remain under family control. Only about 30 per cent of the shares are traded, the rest are in the hands of family members.
From the FT
Perhaps the abandonment of the family name is an attempt to distance the Merlonis from the rubbish that the group produces…………..?
Penguin45.