Electrical goods maker Havells India will acquire 51 per cent stake in Bangalore-based LED and solar light manufacturer Promptec Renewable Energy Solutions for about Rs 33 crore.
The acquisition would allow Havells' entry into the solar energy sector and widen its base further into LED segment, the company said in a statement.
"The Board of Havells India Limited today approved the acquisition of majority stake of 51% in Promptec Renewable Energy Solutions at an enterprise value of Rs 65 crore," the company said.
Havells India Chairman and Managing Director Anil Rai Gupta said: "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."
He added: "The alliance also marks the entry of Havells into the promising field of solar energy that could further be expanded, considering the number of renewable energy initiatives of the government."
Havells plans to leverage Promptec's expertise in solar energy and LED segment through its distribution network.
"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 the next 3-4 years," Gupta added.
The promoters of Promptec will hold a 49 per cent stake in the company, post deal, the statement read.
Promptec Renewable Energy Solutions Director Kiran Moras said: "We sincerely 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."
It sells a range of solar products, including solar lanterns, charging stations and street lighting which has large untapped demand in rural India as well as export markets.
Promptec has recently executed projects to supply solar cellphone stations to African markets through Digicell.
It has also implemented leading projects for institutions such as Infosys, State Bank of India, BEL and BHEL.
