Polycab India to acquire home automation company Silvan Innovation Labs
Polycab India has agreed to acquire Indian home automation company Silvan Innovation Labs based in Bengaluru for INR 182 million.
The consideration is made up of nearly INR 102 million for shares and about INR 80 million as additional funds infusion for discharging some outstanding liabilities.
Silvan Innovation Labs is engaged in providing automation offerings for homes, offices, retail outlets, banks, hotels, and other spaces.
Founded in 2008 by M Giridhar Krishna, G Mohan, and Ajay Gupta, the home automation company is said to have installed 100,000 plus devices in over 8,000 homes and offices. Silvan Innovation Labs has 17 patents to its credit, which include filed and provisional.
Silvan Innovation Labs’ internet of things (IoT) based automation products and solutions includes room automation, lighting management system, temperature control devices, curtain control, contactless controls, and security devices among others.
The home automation company has also developed a cloud platform (IPSM) for value-added services apart from having integrated capabilities on various third-party cloud platforms that include Google Cloud, AWS, IBM Watson, and Samsung Smart things.
Silvan Innovation Labs had registered more than INR 90 million in sales in FY19. Its order pipeline is said to be more than INR 1 billion.
Polycab India, which manufactures cables and wires and allied products, said that the acquisition will supplement its IoT based automation offerings. Besides, Silvan Innovation Labs is expected to help Polycab India in expanding the potential addressable market in fast moving electrical goods (FMEG) space.
Polycab India further added that the acquisition of the home automation company aligns with its strategy to address the changing consumer requirements through innovative solutions.
Inder T. Jaisinghani – Chairman and Managing Director of Polycab said: “Our ambition is to become a forefront consumer centric company. The domain strength of Silvan coupled with our robust Go-To-Market capabilities presents a great synergic combination.
“It is a fantastic addition to our IoT portfolio and aligns with our strategy to address evolving consumer needs with new age innovative solutions. I believe Silvan will also play a vital part in achieving our FMEG aspirations under Project Leap.”
Post-acquisition, Silvan Innovation Labs will operate as a fully-owned subsidiary of Polycab India.
The deal, which is subject to the meeting of certain conditions by both the parties, is expected to close in a month’s time.