Lloyd buyout a blockbuster deal but has Havells paid the right price?

For now, the Street will keep a close watch on the investor call scheduled on Monday afternoon

Acquiring Lloyd Electric’s consumer durables business has every ingredient to be a blockbuster buyout in the long run. For one, given Lloyd’s 12 per cent market share in the air conditioners industry, it gives Havells the much-needed entry into the white goods segment. Lloyd also manufactures televisions and washing machines apart from a few other consumer products.

The acquisition also comes at a time when Havells’ core business — switchgears — is facing problems on volume and profitability fronts. While Havells’ cables business remains strong, it offers limited diversification opportunities. Therefore after this acquisition, Havells can scale up to cater to all fronts