Havells,Chinese partner to invest Rs 530 cr

Havells,Chinese partner to invest Rs 530 cr to set up a manufacturing facility in China.

Electrical goods maker Havells India today said it,along with a Chinese partner will invest up to USD 100 million (nearly Rs 530 crore) in the next three years to set up a manufacturing facility at Jiangsu province in China.

The new facility will come up under a 50:50 joint venture,Jiangsu Havells Sylvania Lighting Co Ltd,with China’s Shanghai Yaming Lighting Co.

“The initial investment would be USD 50 million,which after around three years will go up as high as USD 100 million,” Havells Joint Managing Director Anil Gupta told reporters here.

Story continues below this ad

The plant will start initial commercial production in April 2012 and will have full swing output by November next year,he added.

The JV firm will produce lighting products like HID lamps,LEDs,CFLs and lighting fixtures,he added.

Initially the company plans to export products wherever the Sylvania brand is sold currently and the later would also cater to the Chinese market,Gupta said.

At present Havells sells the Sylvania brand,which it had acquired in 2007,mainly in Europe and Latin America. It has also been gradually expanding in Middle East and Africa.

Story continues below this ad

The JV expects revenues of USD 30 million in the first year itself and USD 100 million in the next three years,he said.

“Though we had presence in China in R&D space,the need for a manufacturing base was always there,” Gupta said.

In India the company has eight facilities located in Rajasthan,Uttarakhand,Uttar Pradesh,Himachal Pradesh and Haryana.