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| Edited By: Ashish K Tiwari |Source: DNA |Updated: Mar 18, 2018, 04:40 AM IST
Havells India, electrical and power distribution equipment maker, has formed an equal-stake joint venture with a Chinese lighting company to set up an electrical/ lighting products manufacturing plant in China. The joint venture with Shanghai Yaming would leverage on technology and manufacturing strengths of its partners and entail an initial investment of $50 million, Havells said.
Anil Gupta, joint managing director, Havells India, said the venture, Jiangsu Havells Sylvania Lighting Co, will produce cost-efficient energy products.
“We were already sourcing from the Chinese market in addition to undertaking research and development (R&D) activities. However, for certain products for which we own the technology, we wanted to transfer it to a manufacturing company in China that would be partly owned by us,” said Gupta.
The facility which would be funded through internal accruals is expected to start production by April. Starting with high-intensity discharge (HID) lamps, the plant will make LEDs, CFLs and other lighting fixtures.
The partners expect to double the investment to $100 million in 3-4 years. “With this venture, we are targeting an annual turnover of $100 million in next three years,” said Gupta. Havells India recently forayed into the over Rs5,200 crore Indian home appliance market.
The company plans to more than double the number of Havells Galaxy Stores, its branded exclusive retail outlets, to over 200 stores in the next one year.
When asked if the management would explore a Chinese joint venture to manufacture home appliances products as well, Gupta said, “May be in the future.”
Its appliances range is currently being manufactured both in India and China. Havells' current offerings in the domestic appliance segment include products for food preparation, garment care, home comfort, cooking and brewing.
The company has earmarked a capex of Rs150 crore for this fiscal, of which `70-80 crore will be spent towards marketing, R&D of its small appliances range in next 24-36 months.
