HavellsSylvania, the European subsidiary of Havells India, a leading electrical and power distribution equipment manufacturer, is back in black with a net profit of euro 1.3 million (Rs. 8.10 crore) in the second quarter ended Septmeber 30, 2010, against a loss of euro 10.2 million (Rs. 71 crore).
In the quarter under reference, Havells India, on a consolidated basis, posted a 6 per cent rise in its net sales at Rs. 1,401 crore against Rs. 1,319 crore. It reported a net profit of Rs. 71 crore against a loss of Rs. 14 crore. The consolidated profit includes the performance of Havells India (parent company) and its two subsidiaries (Standard Electrical and HavellsSylvania).
Addressing presspersons here on Monday, V. Jothish Kumar, Vice President, Havells India, said in 2009, Havells started restructuring of Sylvania. It closed operations which were most negative. Havells also consolidated operations of different warehouses and shifted a plant to India from Europe. It also reduced its manpower to 2,400 from 3,800. He said even though the process was too expensive, it yielded the desired results. Havells acquired Sylvania in 2007 at euro 227 million. He said the coming quarters would show a completely much better profits. “The profit in the second quarter is partial benefit of restructuring and full benefits of restructuring will accrue in 2011-12”, he said.