NEW DELHI: Usha Shriram Enterprises plans to divest around 25% of its stake in its venture for the first time in 30 years of its existence as it seeks funds to expand and invest in the lighting business of the company. The company is in final stages of talks with Sudhir Gensets.

"The final shareholding pattern is yet to be finalised," said Anupam Bharat, managing director, Usha Shriram Enterprises, which has a wide range of products such as CFL lamps, LEDs, luminaries, MCBs, among others. All the lightning equipment under the brand name of Usha are outsourced by the company.

By joining hands with Sudheer Gensets, Usha hopes to reach a turnover of 500 crore in the next three years, rising sharply from the current 129 crore. "As an established name in electronics industry, we have marketing and sales expertise. We required funding to grow our business," Bharat said.

The current size of the Indian lightning industry is 9,200 crore and is expected to grow at 15-20% per annum. Usha Shriram is among the top 5 brands in the country's lighting products market, where the top players include Phillips , Havells and Surya. According to study conducted by AC Nielson in 2012, Usha figures in the top 5 brands in the lighting segment ahead of Wipro , Khaitan and Orpat. Sudhir Gensets would invest in the lighting business of the company. Sudhir Gensets has been looking for an opening in the consumer goods/lighting sector and sees the deal as a natural progression. The deal is likely to be about 40-50 crore.

Lightning business of the company contributes 54% to its total turnover. "We hope to achieve a turnover of 350-400 crore in the coming three years in the lightning industry. Our major thrust would be on CFLs and LEDs," said Bharat.

Usha already has alliances for its other business divisions as well. For its water purifier range, it has a technical alliance with Brita, a German manufacturer of the same. The company manufacturers cookwares and sells a range of home appliances under its 'Lexus' brand.

Source : economictimes.indiatimes.com