Havells India, a leading consumer electricals company, has announced divestment of a majority stake in its European lightings operation, Sylvania, to Shanghai Feilo Acoustics for Euro 148.8 million (Rs 1,100 crore).
The company will be selling an 80 per cent stake in Havells Malta BV. It would hold the remaining 20 per cent for another three to five years, with an exit option.
Havells acquired Frankfurt-headquartered Sylvania for $300 million through its Dutch subsidiary, Havells Netherlands, in 2007. Sylvania is a leading lighting products company, with operations in 48 countries. Its net worth is Euro 443 mn.
Havells India has also divested 80 per cent stake in its wholly-owned subsidiary, Havells Exim Ltd, Hong Kong. The company said the combined equity value for a 100 per cent stake for both firms is Euro 186 mn (Rs 1,350 crore), subject to adjustment. The cumulative investment value for both is Rs 980 crore.
The management said the capital would be put to use for forays into new product segments and markets. “The main focus would continue to be India. We are looking at new markets such as the Middle East and other South Asian countries. We will also expand the product portfolio in India and globally,” said Anil Rai Gupta, chairman.
The company said it would continue to own 100 per cent stake in Havells Sylvania’s subsidiaries in America, Brazil, Chile and Thailand. Gupta said these four companies were on a path of profitability and would continue to grow.
“Havells has a global footprint and we would expand organically in the existing portfolio and inorganically in other ventures, such as Smart City projects,” he said.
[“source-businesstoday”]
