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Havells to buy 51% stake in lighting solutions firm Promptec; Blume scores an exit

20 April, 2015

Electrical consumer products maker Havells India Ltd has received its board approval to acquire 51 per cent stake in LED and solar lighting products maker Promptec Renewable Energy Solutions, at an enterprise value of Rs 65 crore ($10.3 million), according to a stock market disclosure.

The deal is a mixture of primary and secondary deals in which existing investors Blume Ventures and other angel investors will exit.

The acquisition would expand Havells’ footprint in the energy efficient lighting solution business and it plans to increase share of LED lighting to over 40-50 per cent of its total lighting sales. The company got a global lighting products business when it acquired Sylvania a few years ago.

“We believe that this partnership is a huge boost for Promptec as we get substantial reach through Havells brand and distribution platform. We continue to remain dedicated to this venture as in the past,” said Kiran Moras, director, Promptec Renewable Energy Solutions.

Bangalore-based Promptec was co-founded by Kiran Moras and Nikhil Das. It manufactures products such as focus light besides LED and solar lighting and power solutions for commercial spaces, street lights, home, solar lanterns and solar charge controllers.

Promptec has 30,000 square feet scalable LED light and electronics manufacturing facility at Peenya, Tumkur Road, Bangalore.

In 2011, Blume Ventures invested almost Rs 2 crore to pick 19.9 per cent stake in the company. That deal valued Promptec at around Rs 10 crore. The value of fresh money being invested by Havells in the deal is not disclosed but Blume Ventures is expected to have scored a multi-bagger in this transaction.

“Havells is looking to add fresh products in its portfolio and the alliance also marks the entry of Havells into the promising field of solar energy that could be expanded, considering the number of renewable energy initiatives of the government,” said Anil Rai Gupta, chairman and managing director of Havells India.

“We expect Promptec, which currently has revenues of Rs 35 crore, to grow multi-fold with its innovative lighting solutions and be a Rs 250 crore business in three-four years,” he added.

RiverBridge Investment Advisors acted as the financial advisors while AZB & Partners was the legal advisors to Promptec on this deal.

Havells India produces various consumer home appliances besides lighting products in additional to electrical products such as switchgears, cables and more. Havells has a market cap of over $2.5 billion.

(Edited by Joby Puthuparampil Johnson)


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1 Comment
Sabu George . 3 years ago

Congratulations Promptec.. Great achievement..

Havells to buy 51% stake in lighting solutions firm Promptec; Blume scores an exit

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