Japanese company Matsushita Electric Works (MEW) with
brands like National and Panasonic, has picked up an 80
per cent equity stake in the privately held Anchor Electricals
for Rs2,000 crore.
this, Matsushita Electric Works had bought out a German
company for around Rs1,000 crore.
the market leader in the Indian electrical accessories
and wiring devices market with annual sales exceeding
Rs900 crore will become a consolidated subsidiary of Matsushita
Electric Works, Ltd after the transaction. MEW will introduce
new products such as home appliances, lighting, home automation,
interior design solutions and security systems and security
products in India. It will also look at improving the
is eyeing 100 per cent growth in the next four years and
a 500 per cent growth in the next 10 years.
price-earnings ratio for the deal is 15 times the 2006-07
Electricals recorded net sales of Rs922 crore for the
year ended March 2006 and net profit of Rs187 crore. MEW''s
sales stood at $13.7 billion for the year ended March
the moment, the joint venture will continue to be called
Anchor Electricals. The company will also continue to
sell products under the brand name Anchor until Matsushita
gets a fair understanding of the Indian consumer and the
distribution network in the country, top officials said.
The reconstituted board will have six representatives
from Matsushita and four members from the Shah family.
Matsushita executive Toshihide Arii will be the chairman
and CEO of the new venture, while Atul Shah will continue
to be MD of the company.
joint venture will allow Anchor Electricals to expand
its product portfolio and access Matsushita''s proprietary
technologies. For Matsushita, Anchor is an ideal launch
pad to kick off a full-fledged business operation in India,
one of the fastest growing markets in Asia.