Xeros scrubs up with Indian manufacturer deal

Rotherham-based laundry technology business Xeros has signed a deal with an Indian equipment manufacturer.

The deal sees AIM-listed Xeros licence its domestic and commercial washing machine technologies to IFB Industries. The company is the biggest laundry equipment supplier in South Asia and is listed on the National Stock Exchange of India.

Sales of commercial washing machines and domestic washing machines incorporating Xeros’ technologies will commence in India in 2020 and 2021 respectively.

The 10-year agreement covers the incorporation and commercialisation of Xeros’ water saving XOrb™ and XDrum™ technologies into some of IFB’s domestic and commercial sized washing machines.

Xeros will receive immediately an undisclosed one-off exclusivity fee and during the development phase further payments when various milestones are reached.

IFB will have access to Xeros’ technology and has been granted rights to the Indian market on an exclusive basis. For other South Asian territories this will be on a non-exclusive basis, with the potential to add more countries also on a non-exclusive basis.

Xeros will also receive royalties based upon sales revenues after the machines have completed development.

Mark Nichols, chief executive of Xeros commented: “This licensing agreement with the leading Indian OEM for both the domestic appliance and commercial laundry markets is another major milestone in the commercialisation of our cleaning technologies.

“IFB’s capabilities and market reach make them a very strong commercialisation partner in a country where water demand is expected to increase by more than 60% over the next 30 years with some 80% of the current population already impacted by water scarcity.

“With this agreement, IFB’s customers will be able to reduce water, detergent and energy consumption whilst simultaneously benefitting from improved cleaning performance and garment life extension.”