Mumbai: Eureka Forbes, part of Shapoorji Pallonji Group, today said it would further increase its stake in Switzerland-based Lux International to extend its global footprint.
"We share a close partnership with Lux International and have similar values and a long relationship over many years. Both companies should enjoy significant synergies from this proposed transaction, resulting in the realisation of the ambitious goals we have set to increase our combined gross sales turnover from the current$500 million to over $1 billion by 2017," Eureka Forbes Chairman Shapoor P Mistry said in a release issued here.
The acquisition comes within a short period of Shapoor Mistry taking over as the chairman of the the group, which already has overseas presence through its construction business.
The company, however, didn't share the shareholding details. In 2007, Eureka Forbes and Lux International had set up a 50:50 joint venture, Forbes Lux, for global operations. Later in 2010, Lux International had sold a 25 percent stake in the company to Eureka Forbes.
According to a report in the Times of India, Lux International, which has a 100-year history, developed the world's first household canister vacuum cleaner.
With proposed further stake acquisition in Lux International, Eureka Forbes not only gains access to new markets in Europe, Africa and Latin America but also premium products and over 15,000 sales partners around the world.
Lux International Chairman Reinhard von der Becke said, "Joining forces with Eureka Forbes was a carefully considered decision. Having worked together for close to a decade, it is a tried, tested and trusted relationship. So, we are very positive and full of expectation for the future."
Eureka Forbes Executive Vice Chairman Suresh L Goklaney said the company's vision is to become the world's largest direct sales company for premium healthy home products and together the two companies operate in 40 countries with over 25,000 employees and sales partners.
This new partnership with a strong financial partner that has a presence in India and Asia Pacific offers Lux International new opportunities to scale up its operations, develop new and innovative products faster as well as benefit from substantial distribution opportunities in these markets.
"A new Forbes Lux Centre of Excellence will be founded, creating a strategic think-tank in which top management members of both companies will discuss and propose solutions on key strategic issues," Lux International President and CEO Reto von der Becke said.
Eureka Forbes, a pioneer and leader in water purification solutions, vacuum cleaners, air purification systems, electronic security solutions and fire safety, is India's premier health and hygiene direct sales company. Suresh L Goklaney, who has been with Eureka Forbes for over 26 years, will continue to lead the overall strategic development of the newly formed Eureka Forbes Group as its Executive Vice Chairman, under Group Chairman Shapoor P Mistry.