Havells to take controlling stake in Promptec Renewable

NEW DELHI: Electrical goods maker Havells India has acquired 51% stake in Bengaluru-based LED and solar lighting products maker Promptec Renewable Energy Solutions for an enterprise value of .`65 crore, the Bombay Stock Exchange-listed company said on Monday.

Promptec had clocked revenue of Rs 35 crore in the year to March 2015.

The promoters of Promptec will continue to hold the remaining stake in the company. “Promptec is an ideal fit for Havells and the acquisition is expected to provide substantial impetus to Havells’ growth plans in the high potential segments of LED and Solar Solutions,” said Anil Rai Gupta, chairman and managing director at Havells. “We expect Promptec to grow multifold with its innovative lighting solutions and be a Rs 250-crore business in next 3-4 years.”

Havells gained 1.84% on BSE to close at Rs 291.15 on Monday. The company announced the buyout after the close of trade. “This partnership is a huge boost for Promptec as we get substantial reach through Havells brand and distribution platform,” said Kiran Moras, director at Promptec. “We continue to remain dedicated to this venture as in the past.”

Rai said the acquisition of Promptec marks Havells’ entry into the promising field of solar energy that could be further expanded, considering the number of renewable energy initiatives of the government. Promptec’s acquisition will allow Havells to grow aggressively in the LED segment. The company is planning to take the share of LED lighting to 40-50% of its total lighting sales.