Havells India to divest stake in Sylvania

According to media reports Havells India may divest its majority stake in Sylvania. Sylvania is an European lighting systems and fixtures company. Havells acquired Sylvania in 2007 and became a global player. It is now known as Havells Sylvania Ltd.

Havells acquired Sylvania for EUR 227 mn(around Rs. 8570 crores) which has a turnover of EUR 443 million currently. It became one of the top four lighting brands in Europe after that.

As Europe is stable yet challenging, Havells India is planning to focus on the Indian domestic market after this deal because of the huge demand in the market.

In terms of financials the total consolidated operating revenue of Havells India for the year ending March 2015 stands at Rs.8526.42 crores an increase of 4.61 percent on yearly basis. The EBITDA of the company is at Rs.721.13 crores a decrease of 2.88 percent and the EBITDA margin is 8.46 percent as compared to 9.11 percent for same period last year. The net profit of the company stands at Rs.385.42 crores, a  decrease of 13.65 crores on yearly basis.

As the company set up its strategy for the domestic market with current divestment it can help company to improve financials in upcoming period. Today the stock of the company is trading at Rs.290.90. It decreased by 0.46 percent from the previous close.

Havells India Limited is an India-based electrical and power distribution equipment manufacturer. The Company has four business segments: switchgears, lighting and fixtures, cables and electrical consumer durables. The Company along with its subsidiary companies owns some brands such as Crabtree, Sylvania, Concord, Luminance, Linotile and Standard.