Consolidation is likely to pick up in the consumer electric sector. Sources suggest that two large players CG Consumer Electricals and Syska are likely to be open for a buyout.

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CG Consumer is said to be open to an acquisition by a strategic player for management expertise and performance enhancement, sources shared. Syska LED an unlisted player has been struggling for a minority stake sale and is likely to have evaluated majority stake sale options as well, sources with direct knowledge indicated.

Market leader Havells has long been looking to beef up its portfolio. CG Consumer in response to deal query stated, “It is clarified that the Board of CGCEL is not considering strategic sale options and no such proposals are being evaluated.”

Syska LED spokesperson said, “It’s just speculation”. Havells and CG Power managements did not offer a comment. Lights and fans have seen muted demand but is likely to pick up both in volume and margins with infrastructure & construction push by the government. Multiple regulatory and raw material costs may put pressure on smaller players in the unorganised space leading to more consolidation in future.

(Edited by : Vahishta Unwalla)

First Published:Jun 21, 2023 12:20 PM IST