Eureka Forbes to buy majority stake in Swiss marketer Lux
16 May 2013
Eureka Forbes, a prominent player in the water purifier and vacuum cleaner segment, said today it is acquiring a majority stake in Swiss firm Lux International, a direct selling multinational company.
Eureka Forbes already has a 25-per cent stake in Lux International, bought in 2010.
The increase of its stake will help Eureka Forbes expand its global footprint and achieve its goal of becoming a billion dollar company, a statement from Mumbai said. It did not disclose details of the deal.
''Both companies should enjoy significant synergies from this proposed transaction, resulting in the realisation of the ambitious goals that we have set to increase our combined gross sales turnover from the current $ 500 million to over $1 billion by 2017,'' Shapoor P Mistry, chairman of Eureka Forbes, said in the statement.
A controlling stake will grant the company greater access to markets such as Europe, South America and Latin America.
A sales force of over 15,000 people will also be added. With a host of premium products in Lux's portfolio, this association will even boost the product offerings for the company.
On the management front, Reto von der Becke, president and chief executive, Lux International, said, ''A new Forbes Lux Centre of Excellence will be founded, creating a strategic think-tank in which top management members of both companies will discuss and propose solutions on key strategic issues.''
Eureka Forbes has been trying to increase its share in the organised water purifier segment, which is already close to 50 per cent.
For this the company, so far known for premium products, has been launching lower-end products to capture the mass market. The company has also recently forayed into fire extinguishers.
