BGMAL acquires LLM Appliances

Household appliances manufacturer Butterfly Gandhimathi Appliances Ltd as part of strengthening its brand globally, has acquired LLM Appliances Ltd, one of the divisions of its associate company.
LLM Appliances is engaged in the procurement and manufacturing of domestic kitchen and electrical appliances under the trademark - Butterfly.
"With this business acquisition, Butterfly Gandhimathi Appliances Ltd (BGMAL) can now operate freely in the entire domestic kitchen and electrical appliances segments with Butterfly brand," it said.
LLM Appliances Ltd has established various arrangements with overseas and local suppliers for the exclusive production and supply of a number of domestic kitchen and electrical appliances.

"Hence, this acquisition will immediately add up to 15 popular products to BGMAL product basket like induction cooktops, rice cookers, air-coolers and fans," it said.
"Based on the valuation of the business made by ICICI Securities Ltd., BGMAL has acquired the business for a lump sum consideration of Rs 47.75 crore," BGMAL said in a BSE filing.

For BGMAL, this acquisition will boost sales and marketing strength and pan-India distribution network, it said.
The revenue clocked by this division of LLMAL up to March 2014 is about Rs 81 crore.
BGMAL estimates that by leveraging the combined selling and distribution network of both the entities, revenue potential of these products in the first year, would have a "quantum jump".

"BGMAL will now be able to operate a comprehensive range of domestic kitchen and domestic electrical appliances from a single platform armed with Butterfly brand," BGMAL Managing Director V M Seshadri said.
"We expect growth in both the segments -- domestic kitchen and domestic electrical appliances to continue unabated, beating historical growth rates due to improved penetration of brands and increased appreciation of quality and value offered in products by the trademark Butterfly," he said.
BGMAL is investing significantly in its research and development capabilities to augment its record of innovation.
Through this acquisition, the R&D capabilities will be leveraged across entire range of domestic kitchen and electrical appliances, the statement added.