Sylvania Case Study Summary

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Havells is a leading manufacturer and well- recognized brand in the Indian electrical industry. It was originally a trading company and is headquartered in Delhi. Havells is the largest manufacturer of miniature circuit breakers with a market share of 35% in India and is one of the top 10 globally. It is also the only company to offer an entire line of electronic and electromagnetic meters through their distribution channels. In 2006 they had sales over 10 billion rupees. Havells, wants to diversify into new products and countries with the acquisition of Sylvania, a lighting company with similar distribution channels. If they are successful, they will gain a cost advantage as well as a brand premium. This high growth opportunity does pose…show more content…
The task of integrating two diverse teams presents a challenge when managers of Havells in India do not understand Sylvania’s European culture.(Sharma, P. G. 2013, October 26).This is also true of Sylvania’s staff if they are resistance to new processes, which could lead to a high turnover of key talent.(Peavler, R. 2018, January 03). Havell can eliminate some of this turnover risk by introducing changes slowly and with sensitivity to Sylvania’s culture. Havell can also incorporate some of Sylvania’s culture if it fits into the environment.(Gilson, S. n.d). Another factor to look at in whether the acquisition would be a good idea is their different product categories: Sylvania was primarily in lighting and lighting fixtures and Havells was primarily in the electrical industry. In 2006 SLI Sylvania had a full range of lighting products and this will compliment Havells full range of electrical components. Sylvania also had the third largest market share in the US with annual sales of 473 Million euros in the same…show more content…
In the case of Siemens, “Siemens had to sell off Sylvania is European and Latin American operations because of antitrust requirements to private equity firm owned by Citicorp these assets along with the rights to use the Sylvania brand and all region outside North America” (Dhanaraj, C, Ramachandran, K, Dasari, S., n.d.). There are often many policies in different countries. This will challenge Havells in having a standardized business process, which will take time and add some costs. Along with a time restraint of a few days to prepare the proposal, this would be another significant challenge.(Gilson, S.

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