Podcast
Questions and Answers
What does 'others receivables' include?
What does 'others receivables' include?
- Deferred financing costs
- Restructuring costs
- VAT recoverable (correct)
- Accrued income taxes
Which of the following is classified as 'accrued expenses'?
Which of the following is classified as 'accrued expenses'?
- Brazil sales tax
- Average currency rates
- Deferred financing costs
- Payroll and related costs (correct)
Which year had the highest average Indian rupee to US dollar exchange rate?
Which year had the highest average Indian rupee to US dollar exchange rate?
- 2000
- 1997
- 2005
- 2006 (correct)
Which of the following is NOT included in 'accrued income taxes'?
Which of the following is NOT included in 'accrued income taxes'?
What is included in 'other assets'?
What is included in 'other assets'?
Who holds the position of Chief Executive Officer at SLI Sylvania?
Who holds the position of Chief Executive Officer at SLI Sylvania?
Which individual is listed as COO/CFO at SLI Sylvania?
Which individual is listed as COO/CFO at SLI Sylvania?
What is the primary role of Carlos Pietri in the organization?
What is the primary role of Carlos Pietri in the organization?
Which title is associated with Per Langholz at SLI Sylvania?
Which title is associated with Per Langholz at SLI Sylvania?
Who oversees Sales & Marketing at SLI Sylvania?
Who oversees Sales & Marketing at SLI Sylvania?
What were the main channels for distributing electrical and lighting products?
What were the main channels for distributing electrical and lighting products?
Which retailers primarily distributed lighting products in emerging markets like India?
Which retailers primarily distributed lighting products in emerging markets like India?
What was one strategy Anil used to transition into his senior executive role?
What was one strategy Anil used to transition into his senior executive role?
What factor prompted Havells to pursue an initial public offering (IPO)?
What factor prompted Havells to pursue an initial public offering (IPO)?
What was the approximate margin for wholesalers in the distribution of electrical products?
What was the approximate margin for wholesalers in the distribution of electrical products?
Which of the following describes the market challenges Havells faced in the mid-1990s?
Which of the following describes the market challenges Havells faced in the mid-1990s?
Which aspect posed challenges for foreign firms in emerging markets?
Which aspect posed challenges for foreign firms in emerging markets?
What significant achievement did Havells accomplish in 1997?
What significant achievement did Havells accomplish in 1997?
What position did Havells India hold in the miniature circuit breaker market by the early 2000s?
What position did Havells India hold in the miniature circuit breaker market by the early 2000s?
What was Havells' overall market share in India by the early 2000s?
What was Havells' overall market share in India by the early 2000s?
Which joint venture did Havells initiate in 1996?
Which joint venture did Havells initiate in 1996?
What was one of the reasons Anil believed going public was beneficial?
What was one of the reasons Anil believed going public was beneficial?
Which of the following channels was rarely used for sales transactions?
Which of the following channels was rarely used for sales transactions?
How did Havells respond to the competitive pressures in the market?
How did Havells respond to the competitive pressures in the market?
What are two of the stock exchanges where Havells shares were listed?
What are two of the stock exchanges where Havells shares were listed?
What was one outcome of the IPO for Havells?
What was one outcome of the IPO for Havells?
What was the name of the company formed after Siemens sold Sylvania’s European and Latin American operations?
What was the name of the company formed after Siemens sold Sylvania’s European and Latin American operations?
Which company acquired SLI in 1997?
Which company acquired SLI in 1997?
By the end of 1996, what was SLI's annual sales figure?
By the end of 1996, what was SLI's annual sales figure?
How many countries did SLI operate in by the end of 1996?
How many countries did SLI operate in by the end of 1996?
After filing for bankruptcy, which consortium purchased SLI in March 2003?
After filing for bankruptcy, which consortium purchased SLI in March 2003?
What significant action did Paul Griswold's management team take in 2004?
What significant action did Paul Griswold's management team take in 2004?
What was the primary cause of SLI filing for bankruptcy?
What was the primary cause of SLI filing for bankruptcy?
By December 30, 2001, how many employees did SLI Inc. have globally?
By December 30, 2001, how many employees did SLI Inc. have globally?
What was the total sales amount for the year ended March 31, 2006?
What was the total sales amount for the year ended March 31, 2006?
Which expenditure category had the highest amount in the year ended March 31, 2006?
Which expenditure category had the highest amount in the year ended March 31, 2006?
What was the profit after tax for the year ended March 31, 2004?
What was the profit after tax for the year ended March 31, 2004?
What was the amount of other income for the year ended March 31, 2005?
What was the amount of other income for the year ended March 31, 2005?
Which asset category showed a positive increase from 2003 to 2006?
Which asset category showed a positive increase from 2003 to 2006?
How much did the total current liabilities amount to in the year ended March 31, 2006?
How much did the total current liabilities amount to in the year ended March 31, 2006?
What was the total assets reported for the year ended March 31, 2005?
What was the total assets reported for the year ended March 31, 2005?
What was the amount for managerial remuneration in the year 2006?
What was the amount for managerial remuneration in the year 2006?
Which year had the lowest income tax expense among the years reported?
Which year had the lowest income tax expense among the years reported?
Which of the following was a component of total liabilities in 2006?
Which of the following was a component of total liabilities in 2006?
What was the change in cash and bank balances from 2003 to 2006?
What was the change in cash and bank balances from 2003 to 2006?
What was the total costs and expenses for the year ended March 31, 2005?
What was the total costs and expenses for the year ended March 31, 2005?
What was the total stockholders' equity reported for the year ended March 31, 2004?
What was the total stockholders' equity reported for the year ended March 31, 2004?
Flashcards
Distribution System
Distribution System
A system where goods are moved from manufacturers to consumers. It includes various intermediaries like wholesalers and retailers, and can be complex depending on the market.
Non-tariff Barriers
Non-tariff Barriers
Government regulations or standards that affect the trade of goods. These can include safety rules, quality standards, or import restrictions.
Miniature Circuit Breaker (MCB)
Miniature Circuit Breaker (MCB)
A type of circuit breaker designed to protect electrical circuits from overcurrents. They are commonly used in homes and offices.
Market Share
Market Share
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Contract Bidding
Contract Bidding
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Financials
Financials
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Revenue Breakdown
Revenue Breakdown
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Dominant Player
Dominant Player
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Initial Public Offering (IPO)
Initial Public Offering (IPO)
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Imitation Strategy
Imitation Strategy
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International Market Capability
International Market Capability
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International Collaborations
International Collaborations
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Joint Venture
Joint Venture
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Multinational Corporation (MNC)
Multinational Corporation (MNC)
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Market Entry
Market Entry
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Importing
Importing
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Anti-trust Asset Sale
Anti-trust Asset Sale
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Formation of SLI
Formation of SLI
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SLI's Global Expansion
SLI's Global Expansion
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SLI Sale to Frank Ward
SLI Sale to Frank Ward
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Merger of CML and SLI
Merger of CML and SLI
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SLI Inc.'s Acquisition Challenges
SLI Inc.'s Acquisition Challenges
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Private Equity Acquisition of SLI Inc.
Private Equity Acquisition of SLI Inc.
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SLI Inc.'s Restructuring
SLI Inc.'s Restructuring
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Others receivables
Others receivables
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Other assets
Other assets
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Accrued expenses
Accrued expenses
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Accrued income taxes
Accrued income taxes
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Average Currency Rates
Average Currency Rates
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Sales Revenue
Sales Revenue
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Other Income
Other Income
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Materials Cost
Materials Cost
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Office and Administration
Office and Administration
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Selling and Distribution
Selling and Distribution
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Financial Costs
Financial Costs
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Liabilities
Liabilities
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Stockholders' Equity
Stockholders' Equity
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Cash and Bank
Cash and Bank
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Inventories
Inventories
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Total Assets
Total Assets
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Current Liabilities
Current Liabilities
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Statement of Income
Statement of Income
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Balance Sheet
Balance Sheet
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Profit
Profit
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Study Notes
Havells India: The Sylvania Acquisition Decision
- Havells India, a leading electrical manufacturer, received an offer to acquire Sylvania Lighting International (SLI) in early 2006.
- Havells was positioned to emerge as a dominant player in India's electrical market.
- SLI, headquartered in Frankfurt, was a major global lighting company with substantial European and Latin American operations.
- The board had to make a decision within a week about taking over the offer to purchase SLI.
Electrical and Lighting Industry
- The electrical and lighting industry encompasses various businesses involved in the production, transmission, and distribution of electricity.
- Key segments include building systems, electronics, emerging technologies, industrial automation, insulating materials, lighting systems, medical imaging, and technology, power equipment, security imaging and communications, and cable and wire.
- Both segments in the industry (electricals and lighting) are sold globally through common distributors and retailers.
- Global and national standards impacted consumer choices and safety requirements.
- The leading companies included Siemens, ABB, GE, and Philips.
Electrical Components
- Electrical components, including circuit breakers, switches, and cables, are key products in the industry.
- Safety and quality are crucial for these products, adhering to international standards such as IEC and CE Marking, and sometimes local country-specific standards.
- Industry growth mirrored GDP growth; Asian markets experiencing quicker growth than the European and American markets.
Lighting Industry
- The lighting segment comprises light sources (bulbs) and lighting fixtures.
- Products like fluorescent lamps (CFLs) and solid-state lighting (LEDs) were gaining popularity as replacements for traditional incandescent lamps.
- Global and national standards for lighting safety affected the performance of the industry and consumer preferences.
Havells India Background
- Havells started as a small trading business in Delhi in 1958.
- It gradually expanded its product portfolios and manufacturing capacity.
- The company's board consisted of QRG (founder), Anil Gupta (joint managing director) and relatives/other professional managers.
- Havells India emerged as a dominant player in the circuit breaker market in India.
- Key competitors existed within the industry like Larsen & Toubro and Siemens in industrial switchgear, Legrand and Indo Asian in domestic switchgear, Polycab, Finolex, CCI and Universal Cables (cable business).
Havells Growth Strategies
- Havells focused on expanding within the wider electrical and lighting market through acquiring other companies.
- Havells pursued a combination of internal growth, strategic acquisitions, and global market expansion strategies.
- Havells made collaborations with multinational companies such as German companies and UK companies.
SLI Sylvania Background
- SLI Sylvania was a global lighting company with sales exceeding €473 million.
- They had eleven manufacturing facilities in multiple countries across Europe, South America, and the Middle East.
- SLI focused extensively in the industrial, architectural and residential lighting markets.
Challenges of the SLI Acquisition for Havells India
- The acquisition was estimated to cost over $200 million, potentially demanding a major investment from Havells India.
- Integrating SLI's predominantly European management team with the Indian workforce posed an integration challenge.
- Sylvania's marketing networks and product assortment extended their presence in Europe and the Americas, creating potential growth opportunities for Havells India.
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