Electrolux

Electrolux

Overview
The Electrolux Group is a Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 appliance maker.

As of 2010 the 2nd largest home appliance manufacturer in the world after Whirlpool, its products sell under a variety of brand names including its own and are primarily major appliance
Major appliance
A major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a household, institutional, commercial or industrial setting...

s and vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

s. The company also makes appliances for professional use.

Forbes Magazine says Electrolux is one of the top 5 companies in consumer durable good
Durable good
In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks or jewellery could be considered perfectly durable goods, because they should...

s, worldwide, and named it to its list of 130 Global High Performers in 2010.

Formed from a 1918 cooperative agreement between sales company Svenska Elektron AB and kerosene lamp
Kerosene lamp
The kerosene lamp is a type of lighting device that uses kerosene as a fuel. This article refers to kerosene lamps that have a wick and a tall glass chimney. Kerosene lanterns that have a wick and a glass globe are related to kerosene lamps and are included here as well...

 maker Lux AB, Electrolux grew rapidly through mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

 to become a world-class appliance manufacturer.

In 1919, a Svenska Elektron AB subsidiary, Elektromekaniska AB, became Elektrolux (the spelling was changed to Electrolux in 1957).
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Encyclopedia
The Electrolux Group is a Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 appliance maker.

As of 2010 the 2nd largest home appliance manufacturer in the world after Whirlpool, its products sell under a variety of brand names including its own and are primarily major appliance
Major appliance
A major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a household, institutional, commercial or industrial setting...

s and vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

s. The company also makes appliances for professional use.

Forbes Magazine says Electrolux is one of the top 5 companies in consumer durable good
Durable good
In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks or jewellery could be considered perfectly durable goods, because they should...

s, worldwide, and named it to its list of 130 Global High Performers in 2010.

History


Formed from a 1918 cooperative agreement between sales company Svenska Elektron AB and kerosene lamp
Kerosene lamp
The kerosene lamp is a type of lighting device that uses kerosene as a fuel. This article refers to kerosene lamps that have a wick and a tall glass chimney. Kerosene lanterns that have a wick and a glass globe are related to kerosene lamps and are included here as well...

 maker Lux AB, Electrolux grew rapidly through mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

 to become a world-class appliance manufacturer.

Sales company to major manufacturer


In 1919, a Svenska Elektron AB subsidiary, Elektromekaniska AB, became Elektrolux (the spelling was changed to Electrolux in 1957). It initially sold Lux-branded vacuum cleaners in several European countries.

By 1925, the company had added absorption refrigerator
Absorption refrigerator
An absorption refrigerator is a refrigerator that uses a heat source to provide the energy needed to drive the cooling system...

s to its product line and other appliances soon followed: washing machine
Washing machine
A washing machine is a machine designed to wash laundry, such as clothing, towels and sheets...

s in 1951, dishwasher
Dishwasher
A dishwasher is a mechanical device for cleaning dishes and eating utensils. Dishwashers can be found in restaurants and private homes.Unlike manual dishwashing, which relies largely on physical scrubbing to remove soiling, the mechanical dishwasher cleans by spraying hot water, typically between ...

s in 1959, food service equipment in 1962, etc.

Mergers and acquisitions


The company has often and regularly expanded through mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

.

While Electrolux had bought several companies before the 1960s, that decade saw the beginnings of a new wave of M&A activity. The company bought ElektroHelios, Norwegian Elektra, Danish Atlas, Finnish Slev, and Flymo, et al., in the nine years from 1960 to 1969. This style of growth continued through the 1990s, seeing Electrolux purchase scores of companies including, for a time, Husqvarna
Husqvarna
Husqvarna , originally a military arsenal founded in 1689 to produce muskets for the Swedish Army.The company Husqvarna has since grown, and its production has changed from weapons, sewing machines, kitchen equipment, bicycles and motorcycles to lawn mowers, chainsaws and construction products. The...

.

Hans Werthén


Hans Werthén, a President and later Chairman of the Board, led the strategic core of an increasingly decentralised Electrolux—and was instrumental to its rapid growth—from 1967 to 1991.

Restructuring


While attempts to cut costs, centralise administration and wring out economies of scale from Electrolux's vast operations were made in the 1960s and 70s with the focus so firmly on growth, further company-wide restructuring efforts only began in the late 1990s.

A public company


Electrolux made an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

 on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

 in 1928 (it was delisted in 2010) and another on the Stockholm Stock Exchange
Stockholm Stock Exchange
The Stockholm Stock Exchange is a stock exchange located in Stockholm, Sweden. Founded in 1863 it is the primary securities exchange of the Nordic Countries....

 in 1930.

Currently its shares trade on the NASDAQ OMX Nordic Market and over-the-counter
Over-the-counter (finance)
Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the exchange must be well standardised to transparent trading....

 on the main NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

 stock exchange, too. Electrolux is a OMX Nordic 40
OMX Nordic 40
The OMX Nordic 40 is a stock market index for the pan-regional Nordic Stock Exchange. It is a market value-weighted index, created on October 2, 2006, that consists of the 40 most-traded stock classes of shares from the four stock markets operated by the OMX Group in the Nordic countries -...

 constituent stock.

North American trademark


In North America, the Electrolux name was long used by vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

 manufacturer Aerus LLC
Aerus LLC
Aerus LLC, formerly Electrolux Corp. USA, manufactures vacuum cleaners, carpet cleaners and air purifiers. It is headquartered in Dallas, Texas, and has over 500 independently owned franchises in the U.S. and Canada. Aerus is the successor to Electrolux USA, the iconic manufacturer of vacuum...

, originally established to sell Swedish Electrolux products. In 2000, Aerus transferred trademark rights back to the Electrolux Group. Aerus stopped using the Electrolux brand in 2004. Before 2000, Electrolux-made vacuums carried the Eureka brand name, and while Electrolux continued to make Eureka-branded vacuums after it regained the right to use its own brand, it also began selling Electrolux-branded vacuums, too. Electrolux USA customer service maintains a database of Electrolux-made vacuums and provides a link to Aerus in case an Electrolux-branded vacuum cleaner was made by Aerus.

Recent events


Keith McLoughlin took over as President and CEO on January 1, 2011, and became the company's first non-Swedish chief executive.

Electrolux is moving its North American headquarters to Charlotte
CHARLOTTE
- CHARLOTTE :CHARLOTTE is an American blues-based hard rock band that formed in Los Angeles, California in 1986. Currently, they are signed to indie label, Eonian Records, under which they released their debut cd, Medusa Groove, in 2010. Notable Charlotte songs include 'Siren', 'Little Devils',...

, North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...

. Electrolux's CEO says they chose Charlotte for a number of reasons. He mentioned the area's culture, sports scene, quality of life and workforce. A major factor was easy access to an international airport with an airline hub.

Slogan


In the 1960s, the company successfully marketed vacuums in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 with the slogan
Slogan
A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose. The word slogan is derived from slogorn which was an Anglicisation of the Scottish Gaelic sluagh-ghairm . Slogans vary from the written and the...

 "Nothing sucks like an Electrolux".

Americans
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 often assumed that using this slogan was a brand blunder
Brand blunder
Brand blunder refers to the goof ups associated with the branding of a product, especially a new product in a new market. There could be many reasons for such slips...

. In fact, the informal US meaning of the word sucks was already well known in the UK at the time, and the company hoped the slogan, with its possible double entendre
Double entendre
A double entendre or adianoeta is a figure of speech in which a spoken phrase is devised to be understood in either of two ways. Often the first meaning is straightforward, while the second meaning is less so: often risqué or ironic....

, would gain attention.

The company's current slogan is "Thinking of you".

Brands


Electrolux sells under a wide variety of brand names many of them specific to a single country or geographic area and most acquired through mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

. The following is an incomplete list.
  • AEG-Electrolux
    AEG
    Allgemeine Elektricitäts-Gesellschaft was a German producer of electrical equipment founded in 1883 by Emil Rathenau....

    , household appliances sold in Germany
    Germany
    Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

    , Israel, Scandinavia and the UK
  • Arthur Martin-Electrolux
  • Atlas
  • Beam, Electrolux's central vacuum brand
  • Castor
  • Chef
  • Corberó
  • Dito, professional food processing equipment
  • Electrolux ICON, consumer kitchen appliances sold in the US
  • Elektro Helios, acquired in 1962, consumer appliances under this brand are sold in Sweden
    Sweden
    Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

  • Electrolux Laundry Systems
    Electrolux Laundry Systems
    Electrolux Laundry Systems, previously named Electrolux-Wascator, is a leading supplier of professional laundry solutions worldwide. Electrolux Laundry Systems is a part of the business sector Electrolux Professional within Electrolux Group Electrolux Group.-History:Electrolux Laundry System’s...

  • Electrolux Professional
  • Eureka, consumer vacuum cleaners
  • Faure, French consumer appliances
  • Frigidaire
    Frigidaire
    Frigidaire is a brand of consumer and commercial appliances. Frigidaire was founded as the Guardian Frigerator Company in Fort Wayne, Indiana, and developed the first self-contained refrigerator in 1916. In 1918, William C...

    , full range of major appliances sold in the United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

     and globally
  • Gibson
    Gibson Appliance
    Gibson was founded by Joshua Hall in Belding, Michigan, in 1877 as the Belding-Hall Company selling cabinets that housed blocks of ice . The area around Belding, Michigan, had a skilled workforce of Danish craftsman and a good supply of hardwoods including ash. The company was purchased by Frank...

    , refrigerators and air conditioning
  • Juno-Electrolux, premium consumer kitchen appliances
  • Kelvinator
    Kelvinator
    Kelvinator is an appliance brand. It takes its name from William Thomson, 1st Baron Kelvin, who developed the concept of absolute zero and for whom the Kelvin temperature scale is named...

    , refrigerator sold in Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

     and India
    India
    India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

  • King, kitchen appliances sold exclusively in Israel
  • Lehel
    Lehel (appliances)
    Lehel is the name of the largest Hungarian appliance company. The company was owned by the state during the socialist era , and was mostly known for its refrigerators, which were in widespread use. After the regime change, the company had financial difficulties, and was privatized. Eventually it...

    , appliances sold in Hungary
    Hungary
    Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

    , etc.
  • Marynen/Marijnen, consumer products sold in the Netherlands
    Netherlands
    The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

  • Molteni, professional stove
    Stove
    A stove is an enclosed heated space. The term is commonly taken to mean an enclosed space in which fuel is burned to provide heating, either to heat the space in which the stove is situated or to heat the stove itself, and items placed on it...

    s
  • Parkinson Cowan
    Parkinson Cowan
    Parkinson Cowan is now a brand of cooking appliance, owned by the Electrolux Group.-History:*1902: The company became Parkinson and W. and B. Cowan.*1919: The company opens a new factory at Stretford, Manchester to manufacture gas meters....

    , cooking appliances
  • Philco
    Philco
    Philco, the Philadelphia Storage Battery Company , was a pioneer in early battery, radio, and television production as well as former employer of Philo Farnsworth, inventor of cathode ray tube television...

  • Progress, vacuum cleaners sold in Germany
    Germany
    Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

     and throughout Europe
    Europe
    Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

  • Prosdócimo, refrigerators, fridges and air conditioning sold in Brazil
    Brazil
    Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

  • REX-Electrolux, appliances sold in Italy
    Italy
    Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

  • Rosenlew
    Rosenlew
    Rosenlew is an Electrolux owned home appliance brand available in Finland. Electrolux stopped the manufacturing of fridges in Pori, Finland, in 1998...

    , consumer products in Finland
    Finland
    Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

     and other Scandinavian
    Scandinavians
    Scandinavians are a group of Germanic peoples, inhabiting Scandinavia and to a lesser extent countries associated with Scandinavia, and speaking Scandinavian languages. The group includes Danes, Norwegians and Swedes, and additionally the descendants of Scandinavian settlers such as the Icelandic...

     countries
  • Sanitaire
  • Simpson
    Simpson (appliance manufacturer)
    Simpson was a manufacturer of household appliances based in Adelaide, Australia.Simpson was established in 1909. In 1963 they merged with Pope Industries Ltd to form Simpson Pope Holdings Limited. Pope was originally established as Popes Sprinker and Irrigation Company in 1925 and after World War...

    , consumer appliances sold in Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

  • Tornado, vacuum cleaners and other consumer products
  • Tappan
  • Therma
  • Tricity Bendix
  • Volta, vacuums cleaners sold in Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

    , Sweden
    Sweden
    Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

     and elsewhere
  • Voss, premium consumer cooking appliances and equipment in Denmark
    Denmark
    Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

     and elsewhere
  • Wascator
  • Westinghouse
  • White-Westinghouse
    White-Westinghouse
    White-Westinghouse is an American home appliance brand currently used under license by trademark owner CBS Corporation. It was created in 1975 when White Consolidated Industries bought the Westinghouse Electric Corporation's appliance unit...

  • Zanker, consumer kitchen appliances sold in central Europe
    Central Europe
    Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...

  • Zanussi
    Zanussi
    Zanussi is an Italian producer of home appliances that in 1984 was bought by Electrolux. Zanussi is a leading brand for domestic kitchen appliances in Europe. Products have been exported from Italy since 1946.-History:...

    , became a part of Electrolux in 1984
  • Zanussi Professional, professional food preparation, cooking, ventilation refrigeration and dishwashing equipment
  • Zoppas, consumer products sold in Italy
    Italy
    Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...


Notable products



1919: The Lux vacuum is the first product Electrolux sold.

1925: D, Electrolux's first refrigerator, is an absorption model
Absorption refrigerator
An absorption refrigerator is a refrigerator that uses a heat source to provide the energy needed to drive the cooling system...

.

1940: Assistent, the company's only wartime
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 consumer product, is a mixer
Mixer (cooking)
A mixer is a kitchen appliance intended for mixing, folding, beating, and whipping food ingredients. Mixers come in two major variations, hand mixers and stand mixers....

/food processor
Food processor
A food processor is a kitchen appliance used to facilitate various repetitive tasks in the process of preparation of food. Today, the term almost always refers to an electric-motor-driven appliance, although there are some manual devices also referred to as "food processors".Food processors are...

.

1951: W 20, Electrolux's first home washing machine
Washing machine
A washing machine is a machine designed to wash laundry, such as clothing, towels and sheets...

, is manufactured in post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

.

1959: D 10, the company's first dishwasher
Dishwasher
A dishwasher is a mechanical device for cleaning dishes and eating utensils. Dishwashers can be found in restaurants and private homes.Unlike manual dishwashing, which relies largely on physical scrubbing to remove soiling, the mechanical dishwasher cleans by spraying hot water, typically between ...

, is a counter-top model nicknamed "round jar".

1964: Luxomatic is a feature-filled vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

 that uses self-sealing paper dust bags.

2001: Launch of the Electrolux Trilobite
Electrolux Trilobite
The Electrolux Trilobite is a robotic vacuum cleaner manufactured by the Swedish corporation Electrolux. It takes its name from the extinct arthropod, which scoured the ocean's floor. The original prototype cleaner was first seen on the BBC television programme, "Tomorrow's World", in 1996; when it...

, a robot vacuum cleaner
Vacuum cleaner
A vacuum cleaner, commonly referred to as a "vacuum," is a device that uses an air pump to create a partial vacuum to suck up dust and dirt, usually from floors, and optionally from other surfaces as well. The dirt is collected by either a dustbag or a cyclone for later disposal...

.

2002: The Washy Talky, a 'talking' washing machine, goes on sale in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

.