Polycab India Limited (PIL) has signed an agreement to acquire 100 percent stake in Silvan Innovation Labs Private Limited (Silvan). Silvan is a technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
Silvan was founded in 2008 by four electronics and embedded systems domain veterans. Of them, three-- viz. Dr. Giridhar Krishna, Mohan Gopalakrishna and Ajay Gupta will continue with PIL post-acquisition. The company has 17 patents, including filed and provisional, and is based out of Bangalore.
Silvan’s IOT-based automation products and solutions portfolio includes lighting management system, room automation, temperature control devices, contactless controls, curtain control, security devices amongst others. This is complemented by its application and cloud platform (IPSM) for value-added services and has integrated capabilities on various third-party cloud platforms such as AWS, Google Cloud, Samsung Smart things, and IBM Watson.
‘Smart’ IoT Solutions with wireless connected devices are witnessing disruptive penetration on the back of technological advancements, rising connectivity, and changing consumer preferences, making it one of the fastest growing segments within consumer electricals space. Acquisition of Silvan adds new dimensions to PIL's R&D and innovation capabilities, the company said in a press statement. Its wireless retrofit system technology enables rapid upgradation of conventional FMEG into smart products.
PIL’s vast distribution presence and strong manufacturing capabilities will be leveraged to scale up Silvan’s highly functional IoT-based solutions. The company clocked over Rs 90 million in sales in FY19 and has a sizeable order pipeline of over Rs 1billion however the pandemic has significantly constrained the business from achieving its true potential. The cost of acquisition is around Rs102 million for shares and around Rs 80 million as additional funds infusion to discharge certain outstanding liabilities. Silvan will operate as a wholly owned subsidiary of PIL. The transaction is subject to fulfilment of certain conditions by both parties.
Inder T Jaisinghani, Chairman & 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.”