Havells India Limited Acquires Consumer Durable Division of Lloyd

India: Havells India Limited, India’s leading components and electrical appliances company, is acquiring Lloyd Consumer Durable Business Division to foray into consumer durable industry. The proposed enterprise value for the acquisition would be around USD238.75 million on cash free and debt free basis. The transaction is anticipated to close in coming eight weeks.

Havells India Limited has signed the agreement with Fedders Lloyd Corporation Limited and Lloyd Electrical and Engineering Limited for acquiring the Lloyd brand. The consumer durable business of the company would engage in sourcing, assembling, marketing and distribution of consumer durables products which includes TVs, air-conditioners, washing machines and other household appliances. Havells India Limited will also acquire employees working in consumer business division, along with its distribution network, infrastructure. Also, the company will receive the ownership and right to all the intellectual property of brand Lloyd, trademark and logos.

According to TechSci Research, with this acquisition, the company would foray into consumer durables industry, which is currently growing significantly due to increasing urbanization as well as expanding and aspirational middle class. Lloyd, in the last decade has built a brand, service network and distribution in order to provide comprehensive experience to its consumers. The proposed acquisition of Havells is in line with its objective of 'Deeper into Homes', which is driving the company’s presence in domestic market.

According to a recent report published by TechSci Research, “India Television Market By Type, By Feature, By Resolution, By Size, By Leading City, By Point of Sale, Competition Forecast & Opportunities, 2011–2021”, the television market in India is anticipated to cross US$ 9 Billion by the end of 2021. LED TV segment dominated the country’s television market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well. LED televisions are energy efficient due to the implementation of various dimming technologies which save power, or technology that turns off LED television, when not in use. Moreover, LED television provides better High Definition (HD) picture quality and refresh rate, in comparison to CRT and Plasma televisions. In 2015, south region was the largest demand generating region of televisions, followed by west region. Few of the leading players operating in India television market include Panasonic, Videocon, Sony, LG, and Samsung, among others.

According to another recent report published by TechSci Research, “India Air Conditioners Market By Product Type, By End Use Sector, By Tonnage Capacity, By Top City Competition Forecast & Opportunities, 2011–2021”, the air conditioners market in India is anticipated to cross US$ 6 Billion by the end of 2021. Light commercial air conditioners segment dominated the country’s air conditioners market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well, owing to their various advantages such as energy efficiency, lower running cost, easy availability and integration of latest technologies. Southern states in India generates the highest revenue from air conditioners in the country, followed by northern states. Few of the leading players operating in India air conditioners market includes Voltas, LG, Daikin, Samsung, Blue Star and Hitachi, among others.