US-based private equity firms General Atlantic, Blackstone and TA Associates have evinced interest in Syska LED Lights Pvt. Ltd. which plans to sell a significant minority stake. As per a news report, promoters of Syska, one of India’s leading LED (light-emitting diode) lighting solutions provider, are seeking to sell 40-49% stake in the company at a valuation of ₹3,500-4,000 crore.
Syska group had an outstanding debt of ₹1,174.64 crore as on 31 March 2018, according to a 30 January note by rating agency Acuité. Its debt-to-equity ratio stood at 2.43 times, the report said.
Promoted by brothers Rajesh and Govind Uttamchandani, Pune-based Syska LED also manufactures grooming, personal care products and home wires under the Syska brand name. Founded in 2013, the company gets close to three-fourths of its revenue from trading and manufacturing of LED lights and distributing them across the country.
India’s energy efficiency market is estimated at $23 billion with a vast potential to grow as the government plans to expand the use of LED bulbs in the country. While its UJALA (Unnat Jyoti by Affordable Lighting for All) scheme aims to reduce LED bulb prices, the Street Lighting National Programme, launched by Prime Minister Narendra Modi in 2015, has replaced 13.4 million conventional street lights.
Syska LED is part of Syska Group, which comprises six firms including the LED lights business. The group started its journey as Shree Sant Kripa Appliances Pvt. Ltd (SSK Group) in 1989, as a distributor of T-Series audio cassettes, CDs, and audio-video systems. Later, the group bagged the exclusive distributorship of Samsung smartphones and tablets in Gujarat, Maharashtra, Goa, Madhya Pradesh and Chhattisgarh. In 2012, the company acquired a Korean LED manufacturing company IST Ltd as a part of its launch of Syska LED lights in India and overseas.
