Business

IIE DIGITAL DESK : Panasonic is in advanced talks to acquire a controlling stake in Focus Lighting and Fixtures, a business-to-business (B2B) commercial lighting solutions provider, in what would be its second major entry into India’s electricals segment after nearly two decades . The proposed deal aims to acquire the entire promoter shareholding—owned by the founding Sheth family, which holds 55% of the company—followed by a mandatory open offer of at least 26% to public shareholders, as required by SEBI norms.

Based on Focus Lighting’s current market cap, the total investment by Panasonic is estimated to be around ₹526 crore, including the open offer.Sources close to the negotiations describe the talks as well underway, though due diligence has surfaced issues that parties will need to resolve before the deal can move forward .

Panasonic has previously acquired Anchor Electricals in 2007 under its former name Matsushita Electric, marking its first entry into India’s B2C electricals market. Since then, it has maintained a strong presence in India through its electric works division—offering products from LED lighting to switches, wiring, and smart home solutions, which now account for over half of revenue at Panasonic Life Solutions India .

In response to media reports, Panasonic’s electric works spokesperson called the speculation “unfounded,” stating that no official discussions or documentation have occurred. Similarly, Amit Vinod Sheth, Managing Director of Focus Lighting, said there is no event or agreement yet that warrants comment .

Established in 2017 on the NSE’s SME board, Focus Lighting serves clients including Reliance Retail and DLF, focusing on custom light fittings for commercial facades and interiors.  The B2B lighting segment in India is largely fragmented, with numerous small players. Panasonic’s proposed acquisition would help consolidate its market presence and augment its electrics portfolio in a crucial segment .

Acquiring promoter shareholding would automatically trigger the open offer requirement, enabling Panasonic to secure broader ownership from public shareholders . Analysts see the ₹526 crore valuation as broadly aligned with current market multiples but caution that the final deal terms may be refined through due diligence and negotiations.

This move fits Panasonic India’s strategic roadmap, which includes targeting double-digit growth in FY26 across its core B2B and B2C electrical businesses. The company has forecast revenue of around ₹11,500 crore and net profits of ₹1,110 crore for FY25, supported by strong sales from ACs, appliances, smart lighting, and industrial devices.

If completed, this acquisition would strengthen Panasonic’s second major electricals acquisition in India, reinforcing the company’s resolve to deepen its footprint in the commercial lighting market and diversify beyond traditional home appliance businesses.

Focus Lighting, though relatively small by listed standards, occupies a valuable niche in infrastructural and retail lighting. The acquisition would expand Panasonic’s outreach to commercial clientele and allow potential synergies in product development, local manufacturing, and distribution networks.

Investors have reacted positively to the news, with Panasonic’s stock rising on the prospects of market expansion and Focus Lighting shares also reflecting speculative interest. While neither company has issued formal confirmations, the developments represent a broader trend of Japanese firms seeking consolidation in India’s fast-growing electricals and industrial sectors.