Syska LED Promoter Among 4 Bidders for Bankrupt Electronics Firm

Syska LED Lights Pvt Ltd, once a well-known name in the consumer lighting market, is currently going through an insolvency resolution process after facing serious financial trouble. This process has attracted interest from four potential buyers. These include Syska’s own promoter, Germany-based investment firm Mutares Group, and two Indian companies, Aikyam Stressed Asset Fund and Cyfuture India.

Notably, Syska Led Lights was owned by the Pune-based SSK group, which is promoted by Govind Uttamchandani and Rajesh Uttamchandani.

However, banks that have lent money to Syska have raised questions about some of these bids. Their concern is that a few bidders may not have proper approval from their company boards, which is required to make such offers valid, The Economic Times reported.

Syska LED has total confirmed debts of about ₹226 crore. The State Bank of India (SBI) is the biggest lender, having lent around ₹77 crore. Other major lenders include Union Bank of India, HDFC Bank, IndusInd Bank, and Phoenix ARC.

The insolvency process began in October 2024. One important development is that Syska’s promoter has also submitted a bid under special MSME (Micro, Small and Medium Enterprise) rules in India’s insolvency law. These rules allow promoters of eligible MSME companies to try to regain control of their businesses. Bankers generally view promoter participation positively in such cases, as promoters are already familiar with the business.

The remaining bidders are Indian companies, and the process has now reached an advanced stage. A second round of bidding is currently underway. Lenders are hopeful that they will be able to recover more than 50% of the money owed to them, depending on final negotiations and approval by the committee of creditors.

Syska’s financial problems were caused by strong competition, shrinking profit margins, and a shortage of working capital. These challenges made it difficult for the company to continue operations smoothly.

The resolution professional handling the case is expected to present final and compliant resolution plans to the lenders once paperwork issues are resolved. The entire process is likely to be completed in the next few months.

Syska LED is involved in both manufacturing and trading. It sells LED lights, personal grooming products, irons, fans, and home wiring products under the SYSKA brand. The company operates manufacturing units in Rabale and Chakan, both located in Maharashtra.