Polycab India on Friday announced that it has signed an agreement to acquire 100% stake in Silvan Innovation Labs.Polycab said the acquisition will augment its internet of things (IoT) based automation offerings and expand the potential addressable market in FMEG space. It is in line with strategy to address evolving consumer needs through innovative solutions. The acquisition will also add new dimensions to company's R&D and innovation capabilities. Its wireless retrofit system technology enables rapid upgradation of conventional FMEG into smart products. Furthermore, Polycab's vast distribution presence and strong manufacturing capabilities will be leveraged to scale up Silvan's highly functional IoT based solutions.
The cost of acquisition is around Rs 10.2 crore for shares and around Rs 8 crore as additional funds infusion to discharge certain outstanding liabilities. Silvan will operate as a wholly owned subsidiary of Polycab. The transaction is subject to fulfilment of certain conditions by both parties.
Inder Jaisinghani, chairman & MD of Polycab said, "Our ambition is to become a forefront consumer centric company. The domain strength of Silvan coupled with our robust Go-To-Market capabilities presents a great synergic combination. It is a fantastic addition to our IOT portfolio and aligns with our strategy to address evolving consumer needs with new age innovative solutions. I believe Silvan will also play a vital part in achieving our FMEG aspirations under Project Leap."
Polycab India manufactures and sells various types of cables, wires, electric fans, LED lighting and luminaires, switches and switchgears, solar products, pumps and conduits and accessories. The company's consolidated net profit jumped 32% to Rs 283.2 crore in Q4 FY21 from Rs 215.1 crore in Q4 FY20. Revenue during the quarter increased 43% year-on-year (YoY) to Rs 3,037.4 crore.
Shares of Polycab fell 0.21% to Rs 1,936.25 on BSE
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)