Company Profile

 The global transformation driven by urbanization has significantly impacted our way of life, leading to the evolution of societal norms and work methodologies. This shift has spurred technological advancements, giving rise to various corporate industries catering to the production of goods and services for everyday use.

As technology continues to progress, it plays a pivotal role in enhancing our lives for a better future. The market is now saturated with a myriad of products, and the realm of home appliances is no exception. Modern appliances, including refrigerators, electric dishwashers, radios, and televisions, exemplify this era of mass consumption.

Havells, a distinguished Indian multinational electrical equipment company, stands out in the contemporary landscape of electrical equipment and home appliances. Operating in over 60 countries with 35 branches, Havells India boasts a workforce of over 6,000 individuals. The company encompasses well-known brands such as Havells, Lloyd, Crabtree, Standard Electric, Reo, and Promptech, with its headquarters based in Noida, India.

Havells – Company Highlights

HEADQUARTERS	NOIDA, INDIA
Sector	Electrical equipment, home appliances
Type	Public
Founder	Haveli Ram Gandhi, Qimat Rai Gupta
Founded	1958
Valuation	$7800 Millions
Revenue	$130 Millions
Trade Name	Havells India Limited
Website	www.havells.com

Havells – About

Founded in 1958 by Shri. Haveli Ram Gandhi, Havells underwent a significant transition when it was acquired by Qimat Rai Gupta, who initially served as Haveli Ram Gandhi’s distributor. Presently, Havells India Ltd. stands as a multibillion-dollar organization, ranking among the largest and fastest-growing manufacturers of electrical and power distribution equipment in India.

The company boasts a diverse portfolio, offering a wide range of products such as industrial and domestic circuit protection switchgear, cables and wires, motors, fans, power capacitors, lamps, luminaires, modular switches, water heaters, and domestic appliances. This comprehensive product line caters to various applications in households, commercial establishments, and industrial settings.

Havells operates 14 cutting-edge production sites in Haridwar, Baddi, Sahibabad, Faridabad, Alwar, Neemrana, and Ghiloth in India. These facilities are recognized for producing globally acclaimed products known for their precision and excellence in the electrical sector. Havells and its associated brands have earned a reputation as the preferred choice for discerning consumers and industrial users in both domestic and international markets.

Pioneering the concept of ‘Havells Exclusive Brand Stores,‘ the company has established over 700 stores across India, offering a wide array of home and electrical appliances. Notably, Havells was the first Fast-Moving Electrical Goods (FMEG) company to introduce door-to-door service through its ‘Havells Connect’ project, providing a seamless experience for its customers.

Havells’s CSR Initiatives

Havells is actively engaged in Corporate Social Responsibility (CSR) through its initiative known as Havells Steps, encapsulated by the motto “Chhote Kadam, Badi Soch” meaning “Small Steps, Big Ideas.” This initiative is focused on making positive contributions to communities, emphasizing sustainability, and fostering social changes in critical areas such as health, nutrition, sanitation, education, skill development, environment, humanitarian causes, and healthcare.

As part of its CSR efforts, Havells undertakes various projects to enhance the well-being of communities. For instance, the company provides daily mid-day meals to 50,000 students in the Alwar region, significantly improving school attendance and addressing hunger issues. To further amplify this impact, Havells has invested in acquiring a property for constructing an advanced kitchen facility, equipped with modern amenities to prepare fresh and nutritious meals for the same number of students.

Havells’ commitment to CSR reflects its dedication to creating a positive and sustainable impact on society, aligning with its ethos of taking small steps with big intentions.

Havells – Industry Details

As consumers today enjoy easy access to information, their awareness of the features and advantages offered by electronics and home appliances has surged. The integration of smart technologies such as the Internet of Things (IoT) and AI-based devices has significantly influenced the expansion of the consumer electronics and appliances market. Consequently, this industry is experiencing rapid growth, propelled by continuous advancements in technology.

Projections indicate a robust Compound Annual Growth Rate (CAGR) of 12.78% for the electrical equipment and home appliances market from 2023 to 2027. This anticipated growth is substantial, with the industry’s total value expected to soar to $160.03 billion by 2027. These impressive figures underscore the escalating demand for more sophisticated and modernized technology in the realm of consumer electronics and home appliances.

Havells – Founder and Team

Originally, Havells was founded by Shri. Haveli Ram Gandhi. Later, he sold the company to his distributor Qimat Rai Gupta for less than Rs 10 lakhs.

Qimat Rai Gupta

Qimat Rai Gupta, born in 1937 in Malerkotla, Punjab, British India (now in Punjab), came from a modest Punjabi Hindu family. In 1958, he embarked on his career journey by leaving his studies in Punjab and establishing Guptaji & Company, an electrical trading enterprise, in Bhagirath Place, Delhi’s electrical wholesale market, with a modest capital of Rs 10,000.

Qimat Gupta achieved prosperity by selling switchgear in rural India and dealing in cables, lights, and fans in urban India. Subsequently, he strategically invested capital in establishing state-of-the-art manufacturing plants across India. The pivotal moment came in 1971 when he acquired the Havells brand name from Haveli Ram Gandhi. Under Qimat Rai Gupta’s leadership, Havells flourished, setting several trends in the Fast-Moving Electrical Goods (FMEG) industry.

Renowned for elevating Indian electrical goods manufacturing to global standards, Qimat Rai Gupta also made significant contributions beyond the business realm. He founded QRG Central Hospital and the multi-specialty healthcare center, QRG Health City, in Faridabad.

In recognition of his entrepreneurial acumen, Qimat Rai Gupta received the EY Entrepreneur of The Year Award in 2013. Married to Vinod Gupta, he had two sons and a daughter. Of his children, only his second son, Anil Rai Gupta, is actively involved in the company and succeeded his father as Havells’ Chairman.

Qimat Rai Gupta passed away at the age of 77 on November 7, 2014, due to cardiac arrest. At the time of his demise, his net worth was estimated at $1.95 billion.

Anil Rai Gupta

Anil Rai Gupta serves as the Chairman and Managing Director of Havells India Ltd. His educational journey started at St. Xavier’s School in Delhi during his childhood. Anil graduated with a bachelor’s degree in economics from Shriram College of Commerce and pursued an MBA from Wake Forest University in North Carolina. With a substantial 22 years in the industry, Anil Gupta has played a significant role in fulfilling his duties and responsibilities.

Anil Gupta began his association with Havells in 1992 as a non-executive director. Following the passing of his father in November 2014, Anil Gupta assumed the roles of Chairman and Managing Director. Beyond his corporate responsibilities, he is one of the founders of Ashoka University, a private liberal arts institution located in Haryana. Anil Gupta authored the book titled “Havells: The Untold Story of Qimat Rai Gupta” in 2016, a biography of his father, which received positive acclaim.

In recognition of his contributions, Anil Gupta was conferred with an Honorary Doctorate from Wake Forest University in 2017. He also received the Emerging Business Leader Award from the All-India Management Association. Anil Gupta was honoured with the ET Family Business of the Year award for the fiscal year 2017-18 and was recognized as the “Entrepreneur of the Year 2019” by Forbes India. Additionally, he was named Business Today’s Best CEO in the Consumer Durables Category for both 2019 and 2020.

Anil Gupta is married to Sangeeta Rai Gupta, and the couple has two children.

Havells – Business Model

Havells, a brand renowned for its consumer electronic appliances, operates with a customer-centric business model, focusing on the diverse needs and preferences of its clientele. The company is dedicated to fostering a sense of community among its customers, providing them with an extensive array of options tailored to their interests. Havells India primarily caters to proprietors across small-scale, large-scale, and medium-scale industries.

Delving into the specifics of Havells’ business approach, the company strategically organizes its electrical products into sets or groupings, considering the social and financial distinctions within society. The middle-class range offered by Havells is designed to attract and serve customers within this economic segment, presenting them with a broad spectrum of alternatives and choices.

At its core, Havells’ business revolves around the production of a diverse range of electrical goods and equipment. The company’s key products and services can be broadly categorized into two segments:

Consumer: Havells offers smart and sustainable consumer appliances with longer durability, these are:

• Fans
• Lighting
• Water Heater
• Air Cooler
• Water Purifier
• Personal Grooming
• Switches
• Switchgear
• Flexible cables
• Appliances (cooking, brewing, garment care, mixer, etc)
• Solar
• Pump
• Lloyd Consumer Durables (air-conditioner, refrigerator, LED-TVs, washing machine, dishwasher, etc)

Industrial: Havells is also engaged in providing a range of industrial electrical solutions, these are:

• Heavy Duty fans
• Cables
• Motors
• Switchgear and Controlgear
• Professional Lighting
• Power Quality Solutions
• Solar Power

Havells – Revenue Model

As a highly trusted brand among Indians for its electrical appliances, Havells generates its primary revenue through the sale of residential appliances and industrial electrical items. The extensive Havells product line, known as the Havells galaxy, caters to a diverse range of needs for both commercial and residential purposes.

In the fiscal year 2022, Havells reported a robust financial performance, with a total revenue of Rs 13,940 crores. Additionally, the company achieved a net income of Rs 1,196.47 crores during the same period. These figures reflect the strong market presence and financial stability of Havells in the electrical appliances industry.

Havells – Mergers and Acquisitions

Havells India has acquired two organizations to date. The details are:

DATE	ACQUIREE NAME	AMOUNT
February 20, 2017	My Lloyd	Rs 160 crores
April 20, 2015	Promptec Renewable Energy Solutions	Rs 6.5 crores

Havells – Investments

Havells India has made two investments. Their investment details are:

DATE	COMPANY NAME	AMOUNT INVESTED
December 13, 2021	Arrivae	$750 million
June 24, 2021	Veeda Clinical Research	$16 million

Financials (₹in Crores)

Financial Year	FY23	FY22	FY21
Total Revenue	17,200.96	14,098.92	10,644.66
EBITDA	1,798.29	1,934.37	1,776.55
PBIT	1,502.12	1,673.48	1,527.64
PBT	1,447.06	1,606.56	1,437.55
Net Income	1,071.73	1,196.47	1,044.31
EPS	17.11	19.11	16.69
DPS	7.50	7.50	6.50
Payout Ratio	0.44	0.39	0.39

Havells – Advertisements and Social Media Campaigns

Havells has consistently left a significant impact on its audience through creative and innovative branding and advertisements. In a recent initiative, the company launched the #LetsEndDarkness campaign, comprising a series of videos that celebrate inspiring stories of individuals who triumphed over life’s challenges by bringing light into their lives. Personalities such as Smriti Mandhana (renowned female cricket player), Deepa Malik (the first Indian woman participant at the Paralympic Games), Dr. Ruth John Paul (India’s first transgender doctor), and others are featured in the campaign. This initiative aims to showcase real stories of resilience and overcoming obstacles.

Furthermore, in a bid to promote its Gracia alkaline water purifier, Havells introduced the #SahiPaaniKaSignAlkaline campaign, emphasizing the product’s distinctive features. The advertisement underscores the idea that alkaline water is the optimal solution for ensuring the right type of water. Havells continues to leverage impactful storytelling and campaigns to connect with its audience and convey the benefits of its products.

Havells – Awards and Achievements

Havells has been accoladed with many awards, these are listed below;

2021

• Havells won the India Design Mark 2021 for Silencio Mixer Grinder
• Havells has achieved the ICSI CSR Excellence Awards FY 2021-2022
• Havells has won the Great Place to Work Award.

2020

• Havells has received the India Design Mark award for Edgelit
• Havells has won the 10th CII Design Excellence Awards 2020 for Crabtree SmartH Automation Range by India’s 30 Best Workplaces in Manufacturing.

2018

• Havells won the Digital Marketing of the Year 2018 – Consumer Durable Category.
• Havells won the Gold Award for Buzziest brand in the building segment by Afaqs.

Havells – Competitors

The list of competitors of Havells India are:

1. Bajaj Electricals Ltd.
2. Siemens
3. V-Guard
4. Hitachi Energy
5. Inox Wind
6. Voltas
7. Crompton Greaves Consumer Electricals Ltd.
8. Honeywell Automation India Ltd.
9. Exide Industries

Havells – Future Plans

Havells has unveiled plans to establish its own distribution channels throughout India, aiming to extend its reach to an additional 2,800 towns with populations ranging from 10,000 to 50,000 approximately. Bolstered by a positive performance in the fiscal year 2022, the company is strategically directing its efforts towards key areas of innovation, manufacturing, and distribution.

In addition to strengthening its presence domestically, Havells is eyeing expansion into international markets, specifically targeting regions in the Middle East and Africa. This strategic move aligns with the company’s commitment to furthering its global footprint and tapping into new markets beyond India.

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