Polycab India (PIL) has signed an agreement to acquire 100 percent stake in Silvan Innovation Labs (Silvan).
Silvan is a technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
Silvan pioneered the concept of home automation in the Indian residential building market and has a proven track record with many prominent real estate developers.
The company has installed over 100,000 devices in more than 8,000 homes and offices. The company has 17 patents, including filed and provisional, and is based out of Bengaluru, Karnataka.
Silvan’s IOT-based automation products and solutions portfolio include lighting management system, room automation, temperature control devices, contactless controls, curtain control, security devices, amongst others.
This is complemented by its application and cloud platform (IPSM) for value-added services and has integrated capabilities on various third-party cloud platforms such as AWS, Google Cloud, Samsung Smart things and IBM Watson.
‘Smart’ IoT Solutions with wireless connected devices are witnessing disruptive penetration on the back of technological advancements, rising connectivity and changing consumer preferences, making it one of the fastest growing segments within consumer electricals space.
Furthermore, PIL’s vast distribution presence and strong manufacturing capabilities will be leveraged to scale up Silvan’s highly functional IOT-based solutions.
The company clocked over Rs 90 million in sales in FY19 and has a sizeable order pipeline of over Rs one billion. However, the pandemic has significantly constrained the business from achieving its true potential.
The cost of acquisition is around Rs 102 million for shares and around Rs 80 million as additional funds infusion to discharge certain outstanding liabilities.
Silvan will operate as a wholly-owned subsidiary of PIL. The transaction is subject to fulfilment of certain conditions by both parties.