НАVЕLLS INDIА: ТHЕ SYLVАNIА АСQUISITIОN DЕСISIОN Essay Example

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    Undergraduate
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НАVЕLLS INDIА: ТHЕ SYLVАNIА АСQUISITIОN DЕСISIОN3

НАVЕLLS INDIА: ТHЕ SYLVАNIА АСQUISITIОN DЕСISIОN

НАVЕLLS INDIА: ТHЕ SYLVАNIА АСQUISITIОN DЕСISIОN

Main lessons that can be drawn about effective acquisitions in the Sylvania acquisition decision from the Havells case.

Effective acquisition speeds growth of the business. This is evident in this case where in 1980s Havells started growing rapidly after acquiring Towers and Transformers Ltd, which was a medium size firm manufacturing energy meters. This facilitated expansion of the firms Badli, Dheli plant manufacturing MCBs in a joint agreement venture with Geyer of Germany (Dasari, 2009).

Effective acquisition enables the firm get access to complimentary assets. Despite tough economical conditions in India acquisition enables the business to continue to grow. This is well evident in 1961 when QRG bought the rights to well known brand name called Havells, which was owned by Haveli Ram Gandhi, a local electrical firm, (Dasari, 2009).

According to Dasari (2009), effective acquisition results to removal of potential competitors from the market. By the year 2000s, Havells had developed itself as a vibrant player who dominated the switch gear market. The company entire market share in India was 35% due to its strong brand existence. Acquisition made this firm to be among the ten top global manufacturers of switchgears in India (Dasari, 2009). This made the firm conquer its competition by having its shares listed in National stock exchange (NSE), Dheli stock Exchange (DSE) and the stock exchange of Mumbai (BSE).

Effective acquisition according to Dasari (2009), builds capability for the organization to enter international markets. As learned from this case study, Mid 1990s was one of the toughest electrical industry periods. This was a result government of India’s liberalization policy which triggered entrants from big MNCs including China’s generic imports. Havells then facing such challenges, responded by focusing on international collaborations. For Instance in 1996 they acquired joint venture with Electrum of UK and Indian promoters therefore increasing their chances of entering into international markets (Dasari, 2009).

Reference:

Dasari, S., 2009, “Hubbard & Beamish Case: Havells India: The Sylvania Acquisition Decision,”

London: Invey management services.