'Preethi' becomes part of Philips after Maya buyout
25 January 2011
Royal Philips Electronics, which manufactures electronic consumer goods, has acquired Chennai-based appliance maker Maya Appliances, the brand owner of the Preethi range of kitchenware.
Philips said in a media release that it has agreed to acquire the assets of the Preethi business, a leading kitchen appliances company in India. ''This will make Philips the clear leader in this specific fast-growing segment within the Indian domestic appliances market,'' it claimed.
Preethi, a well-known brand in mixer-grinder products, was established in 1978. The company is expected to earn Rs400-Rs450 crore as revenues for the current fiscal.
Upon closing of this transaction in the second quarter of 2011, which is subject to certain contractual and other conditions such as regulatory approval, Preethi will become part of the domestic appliances arm in Philips's consumer lifestyle business. As of now, both companies have signed an agreement of intent (AoI).
Reports say that it will be led from the Philips Group's newly established global headquarters in Shanghai, headed by Murali Sivaraman, former chief executive of Philips India.
"In Tamil Nadu, we have a nearly 80 per cent market share in the mixer grinder space. And in South India as a whole, we have a 45 per cent market share," said T T Siddharth, director (operations) of Maya Appliances.