Havells India, a major player in the lighting and fixture segment, expects its European unit Sylvania to turn profitable from the next financial year following reduction in workforce and restructuring of its business.

Havells, had acquired the Germany headquartered Sylvania in 2007 for 200 million euros. The company was then making losses and industry experts had called Havells management’s decision unwise.

However, the new management started restructuring its business spread across continents and closed loss-making units in Brazil, Costarica and UK.

“We have reduced our workforce by 1,300 in the past one year and have taken other backward integration moves that will help us make our European firm profitable in FY11,” Anil Gupta, joint managing director, Havells India, said.

Sylvania’s sales in European market are down by 15% in the current calendar year as compared with last year.

“People say that we burnt our fingers by acquiring this company but we think otherwise. The acquisition of this company has given us access to the world’s biggest markets and retail a strong retail network,” Gupta said.

The company is spending 40 million euros on restructuring Sylvania that will save the company the same amount every year by controlling fixed costs once the restructuring is over.

Havells also announced its entering into the new age technology of light emitting diodes, or LEDs. The company is hoping of getting some help from the government to promote this highly energy efficient technology.

Havells has set a target of Rs 100 crore in revenue from the domestic market for FY10.