Havells grow stronger as it acquires Lloyd's consumer durable biz

Havells India is now geared up to take another challenge as on Monday, the board of the company announced acquisition of Lloyd Consumer Durable Segment at Rs 1600 crore. Once the procedures of acquisition is done, Havells will foray in the durable market, currently estimated at USD 15 billion and growing at double digits due to urbanisation in many cities in India and increase in the level of income.

The company has signed an agreement with Lloyd allowing Havells India to use infrastructure, human resources, the company's brand name and consumer durable business. As per the company's management, it 'will raise between Rs 500 crore and Rs 700 crore as debt for funding the deal.’

The consumer segment in Lloyd is engaged in sourcing, assembling, marketing of the consumer durables including TV, AC, washing machines etc. It is among the top three brands selling air conditioning systems in India.

After the news broke, we saw significant changes in the Lloyd's stock as it had fallen by 12% and at the time of filing this report at 12:30 hours, it was trading at Rs 286.