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Havells to refinance €105 mn Sylvania loan

Havells to refinance €105 mn Sylvania loan
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First Published: Thu, Mar 17 2011. 04 18 PM IST
Updated: Thu, Mar 17 2011. 04 18 PM IST
Mumbai: Electrical components maker Havells India plans to refinance loans worth about €105 million at its Sylvania unit in 2012, a company source told Reuters, on condition of anonymity, on Thursday.
Upon refinancing, Havells expects the interest rate to halve from current levels of 9%, the source said, adding current debt at Sylvania stands at about €116 million.
“We will be refinancing it through a mix of internal accruals and new debt. Some part of it (the loan) may be funded through internal accruals. We have not decided the division,” the source said.
The company declined to comment.
Havells bought Germany’s SLI Sylvania in 2007 for €227.5 million. The loss-making unit has been turned around after an aggressive restructuring plan.
In December, Havells’ Joint Managing Director Anil Gupta told Reuters he expects Sylvania to grow 15-20% in Latin America, while growing 5-7% in Europe for the next 1-2 years.
Sylvania contributes about half of Havells’ total revenue. It posted continued losses following the global financial meltdown in 2008, but broke even in July-Sept quarter last year.
To leverage its premium Sylvania brand, Havells is spending Rs 120 crore to double its compact fluorescent lamps (CFL) capacity in two years.
Havells shares, valued at close to $1 billion, ended up about 1.5% at Rs 359 in a weak Mumbai market.
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First Published: Thu, Mar 17 2011. 04 18 PM IST
More Topics: Havells | Lighting Products | CFL | SLI Sylvania | Loan |