Havells to buy Lloyd Consumer for Rs 1,600 crore

Havells India Limited, India�s leading electrical appliances and components company, on Sunday announced its board has approved the acquisition of Lloyd Consumer Durable Business Division.

Havells to buy Lloyd Consumer for Rs 1,600 crore

Havells India Limited, India’s leading electrical appliances and components company, on Sunday announced its board has approved the acquisition of Lloyd Consumer Durable Business Division.

The acquisition is proposed to be executed at an enterprise value of Rs 1,600 crore on a debt free, cash free basis subject to closing adjustments, the company said in a press statement, Business Standard reported.


This acquisition, when completed, will mark Havells’ foray into the consumer durable industry.

The company has signed an agreement with Lloyd Electrical and Engineering Limited and Fedders Lloyd Corporation Limited for acquiring Lloyd brand and the consumer durable business that is engaged in sourcing, assembling, marketing and distribution of consumer durables including air-conditioners, TVs, washing machines and other household appliances.

The proforma revenues of consumer durable arm, Lloyd Consumer, for nine months ended December 31, 2016, stood at Rs 1,242 crore and earnings before depreciation, interest, taxes, and amortisation (Ebdita) of Rs 75 crore.

Based on its run rate and past performance, full year revenue is estimated at Rs 1,850 crore with proforma Ebdita of Rs 110 crore.

According to the statement, Lloyd has, over the last decade, built a brand, distribution and service network to provide a comprehensive experience to its consumers. It is among the top three brands in air-conditioners’ category with a well-entrenched national network in Tier I and II cities. The brand has expanded into TVs and washing machines as well.

It is among the top three brands in air-conditioners’ category with a well-entrenched national network in Tier I and II cities. The brand has expanded into TVs and washing machines as well.