New Beginnings: Polycab India Limited acquires Silvan Innovation Labs for ₹ 182 million
Polycab India Limited (PIL) announced today that it is to acquire 100 percent stake in Silvan Innovation Labs Private Limited for ₹ 182 million.
Founded in 2008 by four electronics and embedded systems domain veterans, Silvan claims to be one of the pioneers in the home automation sector in the Indian residential building market. This is complemented by its application and cloud platform (IPSM) for value-added services as well as integrated capabilities on various third-party cloud platforms such as AWS, Google Cloud, Samsung Smart things, and IBM Watson.
With ‘Smart’ IoT solutions becoming one of the fastest growing segments within consumer electrical spaces, Polycab asserts that acquisition of Silvan adds new dimension to their R&D and innovation capabilities.
On this new-formed relationship, Chairman & Managing Director of Polycab, Inder T. Jaisinghani said “Our ambition is to become a forefront consumer centric company. The domain strength of Silvan coupled with our robust Go-To-Market capabilities presents a great synergic combination. It is a fantastic addition to our IOT portfolio and aligns with our strategy to address evolving consumer needs with new age innovative solutions. I believe Silvan will also play a vital part in achieving our FMEG aspirations under Project Leap.”
Silvan made more than ₹ 90 million in sales in fiscal year 2019 and has a sizable order pipeline worth over ₹ 1 billion. However, the pandemic has significantly hampered the company’s ability to reach its full potential. The acquisition cost is approximately ₹ 102 million for shares and around ₹ 80 million for additional funds infusion to discharge certain outstanding liabilities. Silvan will operate as a wholly owned subsidiary of Polycab.
