Havells India has signed an out of court settlement agreement with one of the customer who had raised claims against the Company relating to supply of switchgear products. The supply was questioned by the customer on approved specification norms. The material supplied was reportedly recalled by the customer voluntarily from the market. During the year 2012-13, arbitration proceedings were initiated by the customer against the Company under English Laws.
The Company, considering its long-term relationship with the customer without admission of liability on its part, agreed to pay an amount of Rs 69.69 crore to the customer as full and final settlement of the legal proceedings. The amount has been fully provided for in the books of Accounts and includes Rs 17.71 crore and Rs. 27.69 crore provided during the last quarter and financial year 2014-15 respectively.
Havells India is a leading FMEG Company with a strong global footprint. It enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Pumps, Fans, Modular Switches, Home Appliances, Electric Water Heaters, Power Capacitors, CFL Lamps etc.