The 3rd-largest player in room ACs after Voltas and LG to help expand Havells’ portfolio
Mumbai: Havells India is in advance negotiations with Lloyd Electric and Engineering to acquire its consumer durables business and get a toehold in the fastgrowing Indian air conditioners market that is dominated by global brands, multiple people involved in the talks said. Havells may do the deal for ₹ 1,200-1,500 crore, they added. In a market crammed with about two dozen brands, Lloyd is the third-largest player in the room AC segment after Voltas and LG.
Ever since Havells sold its 80% stake in its international arm Havells Sylvania Malta BV— one of the top four lighting brands in Europe and Latin America — for ₹ 1,070 crore to Shanghai Feilo Acoustics of China in December 2015, it has been scouting for targets from emerging markets and India for brands with strong business prospects. It also has an option to sell the balance stake in three years from the time of sale, or even earlier.
Nipun Singhal, director of consumer durables at Lloyd Electric,
told ET that they are not aware of any development about any potential sale to Havells India.
Mails to Havells spokesperson did not generate a response till t he t i me o f g o i ng t o p r e s s. Repeated calls to Anil Rai Gupta, chairman, Havells also went unanswered.
But in earlier interaction in January, Gupta, had said he will acquire only brands or businesses in emerging markets that help in securing new technologies or expand his existing business portfolio. He declined to comment on Lloyd then.
The consumer business for Lloyd Electric is its mainstay and accounted for 58% of its total revenues and 44% of operational profits in December 2016. Its other business divisions — heat exchangers, original equipment manufacturing and packaged AC business — have seen flat or declining sales.