06 November 2017

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Paradise Papers Havells India set up offshore firms

Paradise Papers Havells India set up offshore firms
Electrical appliances major Havells set up offshore firms to push expansion
In 2007, Havells India registered a firm in Isle of Man which became key investment vehicle

Havells India is listed in India, with the public holding 37.44 per cent shares and the promoters retaining the balance 62.56 per cent shares. The promoters comprise three groups: QRG Enterprises Ltd (30.4 per cent); Ajanta Mercantile Ltd (11.01 per cent) and the Gupta Family (21.15 per cent). QRG stands for Qimat Rai Gupta, the group’s patriarch.

ELECTRICAL APPLIANCES company Havells India floated over 50 subsidiaries beginning February 2000, most of them in tax havens.

Appleby records show. Havells India is promoted by Qimat Rai Gupta and his family, which purchased the Havells brand in 1971. The brand was named after its first owner Haveli Ram Gupta.

On February 9, 2007, HIL set up an entity in Isle of Man called Havell’s Holdings Ltd — an investment firm that served as its vehicle for its overseas expansion. Havells India funded Havell’s Holdings which, in turn, invested EUR 141.25 million in Havells Malta that facilitated its global spread — 52 subsidiaries across Europe, Latin America and Asia.

Havell’s Holdings, whose share capital is GBP 116.95 million, is fully owned by Havells India Ltd.
In the 10 years leading up to 2015-16, revenues of Havells India Ltd (HIL) grew almost eight times from Rs 1,681 crore in 2006-07 to Rs 7,714 crore.

The subsidiaries also borrowed individually from international and Indian financial institutions. For instance, Havell’s Holdings Ltd had a facility agreement of EUR 40 million from DBS Bank, New Delhi. Havells Netherlands Holdings, a subsidiary of Havells Malta Ltd, borrowed EUR 12 million as per a facility agreement dated March 14, 2013 from Standard Chartered. Havells Sylvania Europe Ltd too borrowed Eur 77.5 million from ICICI Bank, Standard Chartered, Frankfurt Branch and HSBC Bank plc as per a facility agreement of May 24, 2012.

Havells acquired SLI Sylvania’s lighting business in 2007 for $300 million using debt and internal accruals but in December 2015 sold 80 per cent of its Malta subsidiary, which was the holding company for all overseas operations, to Inesa UK Ltd, a firm owned by Chinese company Shanghai Feilo Acoustics Co Ltd for EUR 138.4 million.

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Monday, November 6, 2017

Tags – Paradise Papers India Havells India Electric Appliances Company