Havells Case

1. Does the proposed attainment make scent bring out for Havells? Why or why non? Ans The proposed erudition makes sense for the undermentioned reasons ? The acquisition of Sylvania will give Havells coming to the wide marketing networks of SLI. It will reply as a good line of products for marketing Havells products in atomic number 63 ? Access to the R&D and engineering capabilities of SLI ? Ownership of various brands of Sylvania Sylvania, Zenith, Linolite, Claude, chord and Marlin ?Exposure to lighting and lighting fixtures piece, as Sylvania was primarily engaged in this segment whereas Havells had a small presence in the lighting market. . What are the major risks associated with this acquisition? Can these be managed? Ans major(ip) Risks associated with the acquisition are- Strategic risk is the modern and prospective impact on wampum or capital arising from adverse lineage decisions, improper implementation of decisions, or privation of responsiveness to indu stry changes. There is a risk that the acquisition fails to bring out the desired synergy.Operational risk is, as the name suggests, a risk arising from functioning of a companys business functions. It is a really broad concept which focuses on the risks arising from the people, systems and processes with which a company operates. There is a huge difference in the gardening of the two companies which presents a challenge of the integrating of the European executives in the Indian team. yFinancial risk is an umbrella bourne for any risk associated with any carcass of financing. Risk may be interpreted as downside risk, the difference between the effective return and the expected return (when the real(a) return is less), or the uncertainty of that return. The acquisition deal of Sylvania was expected to cost more than $200 million, which is a huge center for Havells. Also there is uncertainty virtually the returns from the acquisition