Havells Case

 Havells Circumstance Essay

1 . Does the proposed acquisition make sense intended for Havells? How come or why not?

Ans: The proposed acquisition makes sense to get the following causes: ❖ The acquisition of Sylvania will give Havells access to the wide advertising networks of SLI. It will serve as a fantastic channel to get marketing Havell's products in Europe ❖ Access to the R& Deb and anatomist capabilities of SLI ❖ Ownership of various brands of Sylvania: Sylvania, Zenith, Linolite, Claude, Concord and Marlin ❖ Exposure to lighting and lighting fixtures segment, because Sylvania was primarily engaged in this section whereas Havells had a little presence inside the lighting market.

2 . Precisely what are the major dangers associated with this kind of acquisition? Can easily these be managed?

Ans: Major Risks associated with the obtain are-

Proper risk is a current and prospective impact on earnings or capital as a result of adverse organization decisions, poor implementation of choices, or not enough responsiveness to industry improvements. There is a risk that the obtain fails to bring out the desired synergy

Operational risk is, while the brand suggests, a risk as a result of execution of the company's business functions. It is just a very extensive concept which focuses on the risks arising from the people, systems and processes by which a company operates. There is a big difference in the lifestyle of the two companies which in turn presents an issue of the the usage of the European executives in the Indian crew. y

Financial risk can be an umbrella term for just about any risk linked to any form of financing. Risk may be accepted as downside risk, the difference between actual go back and the expected return (when the actual go back is less), or the uncertainty of that returning. The obtain deal of Sylvania was expected to will cost more than one hundred dollar million, a huge amount to get Havells. Also there is uncertainness about the returns from your acquisition