Havells India Limited has announced the acquisition of majority stake of 51% in Promptec Renewable Energy Solutions at an enterprise value of Rs 65 crore. Promptec Renewable Energy Solutions is a manufacturer of LED and solar lighting products. With this acquisition, Havells would expand its footprints into two high growth lighting verticals of LED and solar energy. Blume Ventures was the only institutional investor in Promptec LED.
Karthik Reddy, Co-founder and Managing Partner of Blume Ventures, Karthik Reddy had earlier tweeted:
The financial advisors to the deal were RiverBridge Investment Advisors Pvt. Ltd. while AZB & Partners provided legal services.
Bengaluru-based Promptec Renewable Energy Solutions is engaged in manufacturing LED and solar lighting products. The company was founded in 2008 by a team consisting of technology and commercial skills orientation to cater to energy efficient lighting solutions. Post acquisition the promoter group of Promptec would hold 49% stake in the company and continue to contribute to the high growth trajectory for the company.
An ideal deal for Havells
Anil Rai Gupta, Chairman and MD, Havells India Limited believes that Promptec is an ideal fit for Havells and the acquisition is expected to provide substantial impetus to Havells' growth plans in the high potential segments of LED and Solar Solutions. The alliance also marks the entry of Havells into the promising field of solar energy that could further be expanded, considering the number of renewable energy initiatives of the Government. He says,
We expect Promptec, which currently has revenues of Rs. 35 crores to grow multifold with its innovative lighting solutions and be a 250 crore rupee business in next 3-4 years.
Post acquisition plans
Havells plans to leverage Promptec’s experience and skills through its distribution network along with tapping into Promptec’s credentials in the emerging LED street lighting segments and solar products. Havells is expecting that the acquisition of Promptec would lead the company to grow aggressively in the LED segment through a quick market reaction and short development cycles. Havells plans to take share of LED lighting to over 40% and 50% of its total lighting sales and this acquisition is a further step in the journey.
What has Promptec been up to
Earlier, Promptec has also collaborated with Tata Power Solar and Havells to provide solar and LED products including solar lanterns, solar charging stations and solar street lighting for rural areas as well export markets. Kiran Moras, Director, Promptec Renewable Energy Solutions Pvt. Ltd says,
We sincerely believe that this partnership is a huge boost for Promptec as we get substantial reach through Havells brand and distribution platform. We continue to remain dedicated to this venture as in the past.
Promptec was engaged in the first LED street lighting on Ahmedabad-Mumbai NHAI expressway in 2011. Promptec also executed LED street lighting project in 65 municipalities of Kerala through EMC, supply of solar cellphone stations to Africa markets through Digicell.
2015 has been quite successful for Blume Ventures. In last three months, the angel and seed fund had exited from three companies viz. Zipdial, TaxiForSure and now Promptec LED. In January, Zipdial was acquired by Twitter in its first ever deal outside US and Europe. TaxiForSure acquisition by Ola took place last month which was also as one of the largest M&A deals in Indian internet startups.
Blume Ventures has lead investments in 32 startups and syndicated in another 23 companies since its inception. In an interview with YourStory, Sanjay Nath, the other Managing Partner of the firm said that they are seeing more fundable startups and are keen to invest in quite a few of them.
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- Solar Energy
- solar products
- Renewable Energy
- Promptec Renewable Energy Solutions Pvt. Ltd.
- Solar Lighting Solutions
- Havells Group
- Havells India Limited
- Anil Rai Gupta
- Kiran Moras
- energy efficient lighting solutions
- lighting solutions
- LED technology