Walton Hi-Tech Industries PLC has won the bid to acquire three European brands and the trademark and branding rights in 57 countries, seeing off two renowned companies.

With this, the local electronics giant will become the first Bangladeshi company to buy any European brand.

The three brands are ACC, Zanussi Elettromeccanica (ZEM) and Verdichter (VOE).

Walton will also get research and development as well as intellectual property rights for winning the contract from Italia Wanbao-ACC of Italy.

It will buy a fully automated inverter and non-inverter compatible compressor line with a capacity of 32 lakh units per year, taking its manufacturing capacity to 48 lakh units, according to a press release.

"This will result in establishing a significant market share in Europe and other markets," said the company in a disclosure on the Dhaka Stock Exchange yesterday.

Shares of Walton edged up 0.10 per cent to Tk 1,081.

The board has unanimously approved the procurement plan and has also decided to open a subsidiary company, branch or liaison office in Europe and the US.

Walton signed a contract with ACC last week. The purchase amount will be disclosed after the annual general meeting of the company.

Walton will use ACC and two other brands from next week to market ACs, freezes, washing machines and other appliances in all 57 countries, said Golam Murshed, managing director and chief executive officer of Walton Hi-Tech Industries.

"These brands will help us a lot in the global market," he said, adding that Walton will also market the ACC brand in Bangladesh as well.

The compressor manufacturing unit will make energy-saving compressors.

"This will enhance our compressor-making capacity, which will be instrumental in increasing our exports earnings and our contribution to the economy," Murshed said.

Currently, exports account for nearly 20 per cent of the total turnover of Walton.

The local home appliance giant currently exports products such as televisions, freezes, air conditioners, compressors and compressor parts to 45 countries in Asia, Europe, the Middle East, Africa, and America.

"We now expect that our sales will surge in the European and American market by the end of this year," Murshed said.

Walton won the bid by defeating one Japanese and one European company, said Firoj Alam, chief marketing officer of Walton Hi-Tech.

"The winning of the bid is a big leap toward attainment of our goal to be one of the top five global brands by 2030. This is part of our steps to expand our global footprint."

Walton Hi-Tech began making compressors in 2017 as the first company in Bangladesh.

With nearly Tk 7,000 crore turnover in the financial year of 2020-21, the home appliance maker posted a Tk 1,639 crore after-tax profit in the year, which was Tk 726 crore the previous year.