In a move underscoring its ambition to diversify beyond renewable energy and EV infrastructure, Servotech Renewable Power System announced that its subsidiary, Hertz and Pixelz (formerly Techbec Green Energy), has entered into an agreement to acquire the business operations of Hertz & Pixelz, a well-known player in India’s entertainment and events space.
This strategic acquisition reduces Servotech’s direct shareholding in the subsidiary from 100% to 51% (fully diluted), as the transaction brings new stakeholders and expertise into the fold.
A Leap from Power to Entertainment
Traditionally known for its EV charging solutions and renewable energy technologies, Servotech has increasingly signaled an appetite for diversification. With its existing foothold in sports and event management, the acquisition of Hertz & Pixelz cements its expansion into the high-growth entertainment and events industry.
Hertz & Pixelz brings with it a formidable track record: delivering large-scale spectacles through cutting-edge audio, lighting, and high-resolution LED solutions. The company has powered landmark events including the G20 Summit, Ed Sheeran’s India concert, mega exhibitions, and official government programs.
By integrating Hertz & Pixelz, Servotech gains access to an extensive in-house inventory of premium event equipment and an experienced team with deep expertise in corporate and political event management. This strengthens Servotech’s positioning in a sector where recurring infrastructure investments and equipment rentals generate consistent cash flows.
The Strategic Rationale
For Servotech, the acquisition represents more than diversification — it’s about hedging against cyclical risks in the energy sector while tapping into a high-margin, creativity-driven vertical.
- Revenue Streams: With Hertz & Pixelz’s rental business, Servotech can establish recurring income beyond its EV infrastructure and solar equipment portfolio.
- Synergies: Its existing experience in event management for sports and public events dovetails with Hertz & Pixelz’s expertise in entertainment and political events.
- Market Growth: India’s live entertainment and experiential marketing industry has been expanding rapidly, driven by corporate spending, government showcases, and rising consumer appetite for mega-events.
By reducing its shareholding to 51%, Servotech also ensures operational autonomy for the subsidiary while retaining a controlling stake, signaling a long-term commitment without micromanaging.
Leadership Commentary
Raman Bhatia, Founder and Managing Director of Servotech Renewable Power, framed the acquisition as a natural extension of the company’s philosophy of pushing boundaries.
“The acquisition of Hertz & Pixelz reflects our commitment to entering new avenues that thrive on creativity and precision. With their proven expertise and legacy of delivering iconic events, we are confident this association will allow us to deliver extraordinary entertainment experiences and set new benchmarks in the industry.”
This aligns with Servotech’s broader vision of not merely being an energy solutions provider but a multifaceted innovation-driven conglomerate.
Implications for Investors
From an investor’s perspective, this deal is noteworthy on several fronts:
- Diversification Hedge: By moving into entertainment, Servotech reduces its dependency on EV and renewable markets, which, though promising, remain vulnerable to policy shifts and raw material dynamics.
- Brand Building: Associating with high-profile events like the G20 and global music concerts enhances Servotech’s visibility and prestige beyond the industrial domain.
- Growth Potential: India’s entertainment and events sector is projected to grow at double-digit rates in the coming decade, offering Servotech a new growth engine.
- Equity Dilution: The reduction of shareholding in the subsidiary to 51% may raise questions on long-term earnings contributions, but the retention of control ensures that Servotech continues to benefit from the subsidiary’s growth.
Conclusion
The acquisition of Hertz & Pixelz marks a pivotal moment in Servotech’s transformation — from a renewable energy specialist to a diversified enterprise straddling technology, infrastructure, and entertainment.
In an era where cross-industry synergies are increasingly defining corporate success, Servotech’s bold bet on the live events industry could either emerge as a stroke of diversification or test the company’s ability to manage vastly different business verticals.