M&As grow in consumer durables sector

Debt-hit companies are under pressure from lenders to sell assets

The Indian consumer durables sector is witnessing a consolidation with companies such as Havells, Voltas and private equity firms bidding for Videocon Industries’ Kenstar brand.

In February this year, Havells took over the consumer electronics business of Lloyds Electric at an enterprise value of Rs 1,600 crore.

Similarly, debt-hit Crompton Greaves sold its consumer electronics business for Rs 2,000 crore to private equity firms Advent and Temasek in April 2015.

“The unmanageable debt of traditional companies is leading to a consolidation in the consumer electronics sector,” said a banker close to the transaction.

“We can expect such sales from the