Harman India may benefit on its parent buying car audio biz of Bang & Olufsen

 

Harman India is expected to benefit from its parent company Harman acquiring car audio business unit of Bang & Olufsen

The United States-based Harman International Industries, the global leader in automotive infotainment and car connectivity segment, has acquired the car acoustic business of Bang & Olufsen.

India-based market analysts say the acquisition may benefit the Indian operations of Harman, which has started getting remarkable business in India since past two years.

Denmark-based Bang & Olufsen is a notable supplier in the global automotive industry and its products are used in top auto brands like Aston Martin, Mercedes-Benz, Audi and BMW car models.

According to India-based car infotainment market analysts who spoke to Automotive India News said that the acquisition will strengthen Harman’s presence in India too. Harman has two developmental centres in India, one in Bengaluru and another in Pune.

Already Harman is powering mid-level sedan Zest from Tata Motors family and the later’s upgraded versions of SUV Tata Safari Storme with its high technology-backed next generation infotainment systems.

Also Read : Harman’s contribution to Tata Motors

With the latest acquisition, Harman is expected to get more car audio business in India as the existing customers of Bang & Olufsen like Mercedes-Benz, Audi and BMW are having strong presence in the country.

The US automotive infotainment major has bought the car stereo business unit of Danish Bang & Oufsen at $ 156 million. The acquisition began two months ago and completed by the end of May.

Dinesh C Paliwal, Chairman, President and Chief Executive Officer of Harman said, “The additions of Bang & Olufsen and B&O Play as distinctive and renowned brands will complement Harman’s existing premium branded offerings and strengthen the company’s position in this segment.”

With the acquisition of car stereo business of Bang & Olufsen, he said the company will continue to offer its customers with the strong portfolio of brands and technologies

Harman will now bring its global capabilities in the areas like technology and marketing to the Bang & Olufsen and B&O Play car acoustic brands to strengthen its overall car infotainment business across the world.

After the acquisition, in addition to Bang & Olufsen and the B&O Play, Harman will have car acoustic brands like Lexicon, Bowers & Wilkins, Mark Levinson, Harman Kardon, Revel, Infinity and JBL.

Harman powers more than 25 million of vehicles today on the road across the world with its infotainment systems. Harman, which recorded revenue of $ 5.9 billion in April 2014 to March 2015 has a strong workforce of around 25,000 employees people across the world.