Havells India rose 1.49% to Rs 524.50 at 9:52 IST on BSE after the company said it signed an agreement with Hyundai Electric for manufacturing magnetic contactors.
The announcement was made after market hours yesterday, 14 March 2018.Meanwhile, the S&P BSE Sensex was down 29.94 points, or 0.09% to 33,805.80.
On the BSE, 32,000 shares were traded in the counter so far compared with average daily volumes of 50,000 shares in the past two weeks. The stock had hit a high of Rs 525 and a low of Rs 520.50 so far during the day. The stock hit a 52-week high of Rs 592.70 on 29 January 2018. The stock hit a 52-week low of Rs 421.70 on 15 March 2017.
Havells India announced an agreement with South Korean major Hyundai Electric & Energy Systems Co. for manufacturing of magnetic contactor. Under the agreement, Hyundai Electric will provide technology know‐how and grant a license to manufacture, and market magnetic contactors under Havells brand.
The magnetic contactor market in India is presently estimated to be Rs 1200 crore and growing at 6‐8% annually. Havells through this partnership expects to garner an additional market share of 8% in the next 3 years by entering in new market segments that require higher specifications. Havells India would also manufacture magnetic contactors for Hyundai Electric.
As per the previous memorandum of understanding (MoU) signed between both the companies in November 2017, Hyundai Electric will supply low and medium voltage protection and switching devices to Havells as Brand labeling and will also grant manufacturing license for ranges of magnetic contactors and molded case circuit breakers to Havells. Also, Havells will supply equipment such as miniature circuit breakers and magnetic contactors to Hyundai Electric.
Under the MoU, both companies will develop a synergy plan and use the manufacturing capacities, technologies and distribution network of Havells for India market.
Net profit of Havells India rose 27.06% to Rs 194.36 crore on 30.53% rise in net sales to Rs 1965.77 crore in Q3 December 2017 over Q3 December 2016.
Havells India is a leading FMEG company (Fast moving electrical goods) with presence across India.
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