Latest news with #HarmanUS
Mint
3 hours ago
- Automotive
- Mint
Harman's India DTS is up for sale: Here are the top bidders
MUMBAI : Global private equity firms including Apax Partners, Bain Capital, Carlyle and General Atlantic are vying for a controlling stake in the digital transformation services (DTS) business of Harman US in India, three people aware of the development said. Harman US, a Samsung Group company, is looking at a valuation of $400-500 million for the Indian DTS business. 'Currently, the funds are doing due diligence. The second round of bids is likely only next month," one of the people cited above said on the condition of anonymity. Harman US has hired global investment bank Deutsche to help with the process. Mint was the first to report on the group's plans to sell a controlling stake in the India business on 12 May. Harman US is famous for its JBL, Harman Kardon and Infinity audio products; however, these are separate from its DTS business that's up for sale in India. Also read | Mint Exclusive: JBL maker Harman to sell controlling stake in India unit A Harman India spokesperson said, 'Harman does not comment on market speculation or rumors. As a global leader in technology and innovation across the automotive, consumer, and enterprise markets, we remain focused on delivering solutions that amplify life experiences. We are always exploring opportunities to strengthen our business, enhance our capabilities, and deliver value to our customers and stakeholders." Spokespersons for Apax and Carlyle and General Atlantic declined to comment, while Bain Capital did not respond to emailed queries. Among top brands Harman US is a Connecticut-based manufacturer of audio systems, automotive infotainment systems, lifestyle products, and connectivity solutions provider. It is counted among the top brands globally, with the majority of the revenue being derived from the automotive business and has contracts from some of the leading automotive original equipment manufacturers (OEMs). It operates in more than 30 countries. Also read | Global PE firms eye stake in Tessolve at $300 mn valuation Harman's DTS business builds systems for clients across life sciences, high-tech, and industrial and consumer sectors. It helps life sciences and med-tech companies accelerate clinical trials and modernize platforms. For high-tech firms, it helps simplify platform engineering, accelerate development, and unlock end-of-life revenue. It also helps industrial and consumer clients to operate smarter and serve better—through real-time factory insights, connected ecosystems, and enterprise systems. Revenue driver The DTS business, particularly its Indian operations, plays a crucial role in driving revenue growth for the group. India is a centre of excellence for the DTS business, with a significant number of employees based here. India is a major hub for technology development within Harman's DTS business, with a substantial workforce and a focus on key verticals like healthcare, communications, and industrial. Harman India is a wholly owned subsidiary of Harman US. It has four major business segments, namely, Lifestyle, India Development Centre, Connected Car, and Professional. Also read | Carlyle group sells 2.6% stake in Yes Bank for ₹1,775 cr via bulk deal Harman Group joins the list of global companies looking to sell or monetize their India business. 'For Harman, the DTS business is non-core to its global strategy and it is looking to monetize it," the second person cited above said. In the recent past, companies such as Thyssen Krupp, Haier and Siemens Gamesa have considered selling their Indian business and focusing on their core business. With private equity firms getting active along with domestic business houses which are hungry for inorganic growth, the deal activity in this segment is likely to pick up going forward.
Mint
11-05-2025
- Automotive
- Mint
Mint Exclusive: JBL maker Harman to sell controlling stake in India unit
Harman US, the maker of JBL, Harman Kardon and Infinity audio products, is in talks to sell a controlling stake in its Indian unit, three people aware of the matter said. The US company has approached global private equity and buyout firms to sell its shares in a deal valuing the Indian unit at $500-600 million, the people said. Harman US, a subsidiary of South Korea's Samsung, has picked Deutsche Bank to help with the process, one of the three people said on the condition of anonymity. 'There is a global restructuring the group is looking to set into motion. Selling the India business is part of it," the person said. Also read | KKR looks to sell RE Sustainability again, may fetch $1.5 bn Harman US is a Connecticut-based manufacturer of audio systems, automotive infotainment systems, lifestyle products, and connectivity solutions. The company supplies audio products to leading automakers, which makes up its largest business. In March 2017, Samsung acquired Harman US. A Harman India spokesperson declined to comment on queries about the sale. The spokesperson, however, added, 'We are always exploring opportunities to strengthen our business, enhance our capabilities, and deliver value to our customers and stakeholders." Operations in over 30 countries Harman US operates in more than 30 countries, including the US, Europe, Asia Pacific, the Middle East, and Australia. Harman India is a wholly owned subsidiary of Harman US. Harman India has four major business segments, namely, Lifestyle (LS), India Development Centre (Software division; IDC), Connected Car (CC), and Professional (PRO). LS is a consumer audio division, which deals in the retailing of headphones, earphones, blue-tooth speakers, sound bars and car audio. 'The valuation arbitrage that India offers is huge. The company is looking to monetize its stake. Though the final contours of the deal are yet to be decided, the firm might look at selling anywhere between a significant minority to a controlling stake," a second person added. According to a July 2023 Care Ratings release, Harman's Indian business has picked up after the relaxation of covid-19 related restrictions. Also read | These startups are drawing investor interest amid a growing tribe of pet parents Harman's CC segment makes infotainment systems and telematic solutions (head units) for automotive OEMs at its plant in Chakan, Pune. 'Globally, Harman's CC business is around $4 billion and is among the top three players. However, similar success is yet to be replicated in the Indian market, which is gradually adopting advanced infotainment technology. The IDC segment provides software development services only to its group entities. It operates on a cost-plus model. This segment has earned relatively stable profits for Harman India," the release said. As per the release, in FY23, Harman India recorded revenues of ₹4,113.41 crore as against ₹3,162.66 crore in FY22. Profit after tax stood at ₹294.24 crore in FY23 as against ₹221.95 crore in FY22. Some of the global companies such as Thyssen Krupp, Haier, Siemens Gamesa, among others have been looking to sell their Indian business and focus on their core business in the last 12-18 months. Also read | Warburg Pincus looks to clock out of SBI General Insurance with a $350 mn cheque
