RR Kabel announced that it had acquired the home electrical business (HEB) of Luminous Power from the French engineering firm Schneider.

Managing Director of RR Kabel, Shreegopal Kabra, told the media that this acquisition would boost RR Kabel's consumer electrical business, which includes fans, lights and electrical appliances.

The transaction of this acquisition might complete in May this year.

Earlier, Schneider had acquired a 74% stake in Luminous Power and, in 2017, acquired the remaining 26%.

Luminous HEB consists of fans and lights. It would help RR Kabel enter into the premium segment of this category.

Recently, Luminous introduced its series of energy-efficient star-rated premium designer fans in India.

Under this deal, RR Kabel can use the Luminous brand for four years for the existing product lines of fans and lighting under a Brand Licensing Agreement (BLA).

CEO of Consumer (FMED) Business of RR Kabel, Vivek Abrol, said after the acquisition that the company is reorienting its target for this segment.

He said that the company had planned to touch a Rs 1,000 crore revenue in 3-4 years from this segment, and after this acquisition, it has been reoriented. The company is now aiming to reach the Rs 2,000 crore mark in 5-6 years.

The company has a revenue of Rs 300 crore from the fan and light segment. It is backed by TPG Capital, a US-based firm that has invested and owns a minority stake.

Kabra said that RR Kabel's overall revenue is around Rs 5,400 crore, and the company expects to reach the Rs 10,000 crore target in the next two years.

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