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Delhi-based Havell buys Sylvanian for $300 m
By siliconindia
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Wednesday, 14 March 2007, 17:30 IST
New Delhi: Delhi based Havell's Group has acquired Dutch-based SLI Sylvania's lighting business for $300 million (about 
1,350 crore). This is one of the largest take over in the electrical equipment industry in India.
Recently, SLI Sylvania earned profit before tax of $38 million . But a senior company source said there is enough scope to improve the profitability of the company.
The all cash deal would be funded through a mix of debts of $160 million on SLI Sylvania's book, $105 million on Havell's Netherlands' balance sheet against the guarantee of Havell's group and the rest would be through internal accruals.
SLI Sylvania has a turnover of around $600 million and has 10 manufacturing plants located across Europe, Latin America and Africa. With this acquisition, Havell will have access to a strong brand and distribution network with over 10,000 distributors and dealers spread across the globe. The company will also own brands like Sylvania, Lumiance, Marlin, Claude and Linolite Sylvania.
SLI Sylvania has staff strength of around 4,000 in its world wide operation. Qimat Rai Gupta, MD, and Group Chairman said no staff will be retrenched and the company will continue all its existing international operations.
Following the acquisition the group is likely to clock $1 billion turnover in 2007-08 with two-third of revenue to come from international market. Havell's shares jumped 6.8 percent to 476.20 in intra-day trading on the Bombay Stock Exchange on Tuesday.
"The takeover would give Havell's group access to all the key markets in Europe, Latin America and Africa where Sylvania has a stronghold." Havell's, Joint managing director Anil Gupta said, "Post-acquisition, the group would target emerging markets in North Africa and Asia," he expanded.
"The takeover would give us a platform to market the Havell's brand in a better way through Sylvania's distribution network. We would also introduce Sylvania's lighting brands in India but are currently working on the branding," Gupta said. He also added that Sylvania would operate as Havell's subsidiary, Havell's Sylvania, and the company would continue marketing its popular brands under the same name. With this acquisition, Havell would get access to all of Sylvania's markets across the world except Mexico, US, Australia and New Zealand.
1,350 crore). This is one of the largest take over in the electrical equipment industry in India.
Recently, SLI Sylvania earned profit before tax of $38 million . But a senior company source said there is enough scope to improve the profitability of the company.
The all cash deal would be funded through a mix of debts of $160 million on SLI Sylvania's book, $105 million on Havell's Netherlands' balance sheet against the guarantee of Havell's group and the rest would be through internal accruals.
SLI Sylvania has a turnover of around $600 million and has 10 manufacturing plants located across Europe, Latin America and Africa. With this acquisition, Havell will have access to a strong brand and distribution network with over 10,000 distributors and dealers spread across the globe. The company will also own brands like Sylvania, Lumiance, Marlin, Claude and Linolite Sylvania.
SLI Sylvania has staff strength of around 4,000 in its world wide operation. Qimat Rai Gupta, MD, and Group Chairman said no staff will be retrenched and the company will continue all its existing international operations.
Following the acquisition the group is likely to clock $1 billion turnover in 2007-08 with two-third of revenue to come from international market. Havell's shares jumped 6.8 percent to 476.20 in intra-day trading on the Bombay Stock Exchange on Tuesday.
"The takeover would give Havell's group access to all the key markets in Europe, Latin America and Africa where Sylvania has a stronghold." Havell's, Joint managing director Anil Gupta said, "Post-acquisition, the group would target emerging markets in North Africa and Asia," he expanded.
"The takeover would give us a platform to market the Havell's brand in a better way through Sylvania's distribution network. We would also introduce Sylvania's lighting brands in India but are currently working on the branding," Gupta said. He also added that Sylvania would operate as Havell's subsidiary, Havell's Sylvania, and the company would continue marketing its popular brands under the same name. With this acquisition, Havell would get access to all of Sylvania's markets across the world except Mexico, US, Australia and New Zealand.