An Indian and a Chinese company have formed a 50:50 Joint Venture to export electrical and power equipment to Europe. Havells India and China’s Shanghai Yaming Lighting Co have agreed to jointly set up a manufacturing unit in China with an investment of US$100 million in the next three years.
The unit, Jiangsu Havells Sylvania Lighting Co, located in Jiangsu province, on China’s Eastern Seaboard, with close proximity to Shanghai, will manufacture HID lamps, LEDs, CFLs and lighting fixtures.It would also provide products for Global Sylvania, which Havells acquired in 2007, as well as local China markets.
Manufacturing energy efficient and ‘green’ products as per Beijing’s mandate, the JV plans is to export the products to Europe, West Asia, Africa and Latin America, where they are being sold under the Sylvania brand. According to the agreement, the JV will also supply electrical and power equipment to the Chinese market. The facility which would be funded through internal accruals is expected to start production by April.
The manufacturing plant which will entail an initial investment of US$50 million, will rely on the technology and manufacturing strengths of Shanghai Yaming Lighting Co. “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,” Anil Gupta, joint managing director, Havells India told DNA.
The partners expect to double the investment to US$100 million in 3-4 years. “With this venture, we are targeting an annual turnover of US$100 million in next three years,” added Gupta. Havells India recently forayed into the over Rs5,200 crore Indian home appliance market.
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.