HaveIIs SyIvania Acquisition A Success Story 1971 2011 AImost 40 Years of Hard Work and Passion (1971 - 2011) An entrepreneuriaI and courageous mindset! Why such a success? Largest EIectricaI business congIomerate - Indian subcontinent Largest Switchgear Manufacturer & Exporter Largest Integrated CFL Factory in the country Largest Motor PIant in the country Largest Integrated Fan Factory in the country 2 nd Largest CabIe manufacturer 2 nd Largest ModuIar Switch manufacturer A U$1bn pIus Enterprise HaveIIs Business Areas India's OnIy EIectricaI Co. with Ten Business VerticaIs BuiIding, Circuit Protection Devices IndustriaI Power CabIes & Wires Fans Lighting Consumer, CommerciaI, CFL Wiring Accessories ModuIar Switches Power Capacitors Motors Bath Fittings & Accessories E2E soIution provider for Power Distribution Equipment Industry Porter's 5 Force model: SWC1 Analysls Our Brands Our Brands $tchgear, Fans, Wres & Cables, Lghtng, CFL, Motor, Capactor & $tches $tches & Bathfttngs Lghtng $tchgear "imat Rai Gupta Charman & Managng Drector AniI Gupta Jont Managng Drector Surjit Gupta Drector - Operatons Ameet Gupta Drector nternatonal Busness & Operatons Rajesh Gupta Drector - Fnance Top Management HaveIIs PIants WSwitchgear Domestc & ndustral & EIectricaI Wiring Accessories- Badd ,HP WSwitchgear ndustral Fardabad WFans- Hardar WWires & CabIes Alar, Rajasthan WCapacitor Noda, UP WMotors & CFL Neemarana, Rajasthan WBathfittings Crabtree )- Bhad 8 PIants In 7 Locations SaIes HAVELLS INDIA LTD. HAVELLS INDIA LTD. %A|| f|gures |n Crores) HAVELLS Group HAVELLS Group 0 500 1000 1500 2000 2500 2004 2005 2006 2007 2008 2009 419 665 1115 1681 2231 2334 1681 5179 5613 0 1000 2000 3000 4000 5000 6000 2007 2008 2009 %A|| f|gures |n Crores) lobal Acquston of $lvana Worldwlde rlghL Lo Lhe 5ylvoolo btooJ* ooe of tbe most qlobolly recognlzed names ln Lhe lndusLry for over a cenLury - Leadlng global deslgner and provlder of llghLlng sysLems comprehenslve range of lamps and a broad selecLlon of flxLures - Leadlng markeL presence ln Lurope and LaLln Amerlca - Acqulred ln Aprll 2007 aL an LnLerprlse value of Luro 227 mllllon Lo WaplLallse Lhe underleveraged brand and dlsLrlbuLlon neLwork W lmprove marglns Lhrough beLLer sourclng from lndla and hlna Wross sell hlgh margln Pavells swlLchgear range Sylvanla SyIvania - GIobaI operations Well postoned globall n major markets Manufacturing and DeveIopment Centres Europe and Africa Erlangen, erman $t. Etenne, France Tenen, Belgum $hple, U.K. Karouan, Tunsa Nehaven, U.K. Haarlem, the Netherlands Latam nhedo, Brazl Bogota, Colomba $an Jose, Costa Rca 1) $lvana Lghtng headquarters nda) Manufacturng and development 10) Dstrbuton 22) WorId-cIass Infrastructures |vers|f|cat|on t|me||ne |vers|f|cat|on t|me||ne 76 8ewlrable swlLches and changeover swlLches 7 P8 fuses aL uelhl 0 Lnergy meLers Acqulred Lowers and Lransformer lLd 7 M8's !v wlLh CL?L8 Cermany 0 ManufacLurlng planL for changeover swlLches |vers|f|cat|on t|me||ne |vers|f|cat|on t|me||ne 2 1echnlcal !v wlLh Schlele lndusLrleworke Cermany for LL8s 6 Acqulred a ManufacLurlng planL for power cables and wlres !v wlLh LlecLrlum for M8s and wlLh rabLree for MS 7 Acqulred LlecLrlc conLrol and swlLchboards nolda for cusLomlzed package soluLlons lnLroduced hlghend lerrarls elecLronlc meLer ln !v wlLh uZC Cermany 2000Acqulred conLrolllng sLakes ln uuke Arnlcs LlecLronlcs meLers and ln lndusLry ma[or SLandard LlecLrlcals |vers|f|cat|on t|me||ne |vers|f|cat|on t|me||ne 200 Acqulred M8s buslness of rabLree and merged LS lLd ln Lhe company 2002 ALLalned lL SA cerLlflcaLlon SLandard elecLrlcal became 00 subsldlary of company 2004 ManufacLurlng planL for lL's and elllng fans nolda 2003 ManufacLurlng planL for fans ln uLLaranchal 2006 lL planL aL Parldwar 2007 Acqulred LlghLnlng buslness of Sylvanla group C8C group enLered healLhcare buslness acqulrlng ma[orlLy sLakes(70) ln enLral PosplLal and 8esearch cenLre larldabad 200 venLured lnLo MoLor buslness 200 SeL up of fully auLomaLlc swlLchgear manufacLurlng planL aL 8addl onsolldaLlon of lL manufacLurlng planL aL neemrana for domesLlc and exporL purposes Strateg|es Strateg|es Mergers And Acqu|s|t|ons Mergers And Acqu|s|t|ons W 1owers and 1ransformers LLd ln W 6 !olnL venLure wlLh rabLree Modular laLe SwlLches uuke Arnlcs uZC Cermany W LLA8nlnC l8CM MlS1AkLS LosL bld for LlecLrlum Lo Slemens by mllllon pounds Learned how Lo moblllze fundlng and Lo deal wlLh complex lssues of merger and acqulslLlons W C8Anu 1AkLCvL8 March 2007 W SLl S?LvlnlA 233 mllllon Luros led by 8arclays aplLal flnances W LnLry lnLo Lurope LaLln Amerlca and Asla aclflc ow Strateg|c the acqu|s|t|on was ow Strateg|c the acqu|s|t|on was W an keep exlsLlng manufacLurlng faclllLles ln Lurope buL wlll creaLe addlLlonal capaclLles ln low cosL lndla W Pavells subsLlLuLe hlnese exporL Lo Sylvanla W Pavells wlll leverage Sylvanla dlsLrlbuLlon ln Lurope uSA and LaLln W Amerlca for margln rlch swlLch gear producLs W Sylvanla 8 u pracLlces can Lransform Pavells W Pavells can use Sylvanla mulLl brand sLraLegy for dlfferenL markeLs rand|ng and romot|ons rand|ng and romot|ons Aggresslve brand bulldlng lnlLlaLlve by paLronlzlng crlckeL hlgh brand vlslblllLy on mass medla - 70cr Spends ln 20070(00 lnc over prevlous yr) 8s00cr spends ln 2000 - Sponsorshlp of rlckeL 120 Wup lndla Lngland Serles lndla AusLralla Serles lL (lndlan remler League) - Sponsorshlp of aanchvl ass hosLed by Shahrukh khan on SLar lus - 7 new 1v ommerclals belng alred across roducL aLegorles ntegrat|ng ntegrat|ng W Cne SLop Shop for Pavells roducLs W 3 Calaxles opened ln dlfferenL clLles W 1argeL Lo reach 00 by year end W 1he sales Lurnover of dealers who have opened galaxy's has shown slgnlflcanL growLh