A Case study on Havells India Limited, its growth prospects, company history and their marketing activities. This study was a part of academic project for the college and has been appreciated. Gives insights on how distribution has been leveraged to create excitement in a product category which is generally not that exciting.

1. Havells India - The growth story
Faculty in-charge – Prof. Sapan Shrimal Student Detail
Vinit Gandhi
Marketing B (36300)

2. Objective of the report
 The report is focused as unravelling the formula of success that Havells has seen as an Electrical
Equipment Manufacturer.
 The emergence of Havells India from a local brand to a brand that acquired Sylvania Lightings – the
fourth largest lighting manufacturer in the world, thereby gaining global presence is an excellent
case in itself.
 The following topics were covered while achieving the objective of the report
 Sector analysis of the electrical appliance industry.
 Evolution of Havells India as an emerging market player.
 Tracking Growth of the company in previous years.
 SWOT Analysis of the company.
 Strategic decisions taken in the timeline of Havells India.
 Studying the Marketing Mix, Product Profile and STP analysis.
 Acquisition of Sylvania and its impact.
 Marketing Initiatives and Distribution Channel enrichment by the company.
 Innovations.
 Future prospects of Havells India.

3. Why Havells
Havells has been consistently growing faster than the market in all
categories. Hence it should be something very unique which is to
be discovered.
Havells has been positioned as a premium brand in a price
sensitive market and yet has been able to make its niche.
Havells has done several innovations in the distribution and sales
side which would be studied.
Economic crisis resulted into backfiring of Havells decision to
acquire Sylvania. Havells managed to come out of this crisis due to
sheer management expertise which adds to the curiosity.
Excellent Marketing campaigns to position Havells as the electrical
equipment brand with highest brand recall

4. Company details
Havells India Limited is a $1.3 Billion
leading Fast Moving Electrical Goods
(FMEG)
Company with a strong global footprint
led by Mr Qimat Rai Gupta.
Has operations in 50 countries with 11
state-of-the-art plants in India and other
7 plants across Europe, Latin America,
Africa and China.
Its global network constitutes of 6500
professionals across 91 branches &
representative offices in over 50
countries.
Havells
Luminance
Standard
Concord
Sylvania
Havells
Crabtree
BRANDS

5. Acquisition of Sylvania
Havells had a track record of five
successful acquisitions, and high
growth in its Indian operations.
However, Sylvania was making
operational losses to the tune of 30
million euros annually after acquisition.
This was due to shrinking in sales due to
the 2008 Economic crisis. Plants
operated at half the capacity and it was
difficult to lay off people.
However, in a classic turnaround case,
Havells managed to pull out Sylvania
from operational loss into a profit
generating entity.

6. Sales and Marketing at Havells
Havells World – 2 stores
Havells Galaxy – 210 stores
Distributors - 10000
Retail outlets - >50000
Distribution Expertise
“Shock Laga Shock Laga” – Havells
Switches
“Wires that don’t catch fire” –
Havells wires
“Save electricity, Bijli Baba” – Havells
lightings
Havells fans are forever – Rajesh
Khanna commercial
Marketing Campaigns

7. Primary Analysis : Havells

8. Market Research : Retailers
Q. What profit margin is generally realized on selling Havells
products?
Fans – 10 % + trade schemes.
Switches – 12-15% + trade schemes.
CFL – 6-8% + trade schemes
Q. Do the customer demand for Havells specific products or do
you have to push the products?
Havells Fans and CFL sell well. Switches are a bit difficult to sell.
Q. Does the brand Havells helps in selling the brand better?
Yes. This was a question that had no alternate answer. Many
distributors prefer keeping Havells products because of the quick
turnover achieved in them.
Q. Why does a customer not buy a Havells product and buy
other products instead?
While fans by Havells are highly competitive, the pricing in
Switches and other allied products acts as a disadvantage.
Retailers in the electrical appliances market are
highly influential since these products sell largely on
the relationships maintained by the store owner with
the customers who are majorly architects, electricians
and construction contractors.
The list of Retailers interviewed are as below –
 Aditya Electricals, Baner
 Power Electric Corporations, Budhwarpeth
 Lucky Electricals, Budhwarpeth
 Neminath Electricals, Budhwarpeth
 Modern Electricals, Budhwarpeth
 Nikhil Electrical Enterprises, Budhwarpeth
 Shreeji Electricals, Mumbai
 Adinath Electricals, Mumbai
 Hardware House and Electricals, Mumbai
 Navneet Electricals, Mumbai

9. Market Research - Distributors
• Quantity based schemes
• Schemes with local trips
• Schemes with trips abroad
• Wholesalers meet
• Training employees
Schemes Offered
New products enter the
market every 6 – 8 months.
However variations in the
existing products are much
frequently introduced
New Products
The sales agents visits them
twice every week wherein we
can communicate any message
for the company.
Heavy advertising and
marketing. It has developed a
niche of its own.
Sales Visit Why Havells
Issues in Selling
Products Sold are always in
the premium category
creating issues in pushing
them through the
customers.

10. Market Research -Employees
Pros –
- Good market reputation.
- Easy to sell and approach customers.
- Lots of encouraging policies for
Distributors and Retailers.
- Rapidly expanding market base.
- Stress level is normal.
- Lots of benefits to the employees.
Cons –
- Premium products, makes it harder to
sell.
- Branding is totally taken care of by
the HQ.
- Switching verticals is not easy.
- Loyalty is more important than skills
when it comes to promotions.
- Non- engineering background people,
stay away.

11. Market Research – Sales Employees
Sales Agent
Havells runs a scheme named power plus for electricians
and other influencers and is a lucky draw system.
After Havells Galaxy, it is coming out with Havells World
which is to provide user an excellent buying experience
Promotional Activities carried out by Havells are –
1. Foreign and local trips.
2. Medical insurance to the retailers
3. Trader Meet, Dealer Meet, Retailer Meet and
conferences
4. Lucky draws schemes during the meets to give extra
incentives
5. Power Plus schemes – Scratch coupon based lucky
draw.
Main competitors Polycab, RR Cables and Finolex in the
Indian cable markets.
.
Havells Galaxy Manager
1. Havells Galaxy stores are one of it kinds in the
electrical markets.
2. Galaxy stores apart from being a consumer
experience outlet, also act as stockiest of Havells
products. All products in the market went by the
Havells Galaxy.
3. Havells Galaxy is occupied during Saturdays and
Sundays. Since majority of the home owners are
free during this time frame.
4. Several promotional activities like Havells World
that would come up
.

12. Secondary Analysis : Havells

13. Positives for Havells
Extremely successful brand: Highest recall in
the industry
Presence across the entire electrical
equipment product gamut
Apt positioning & strong distributor
network…expected to expand further
Lucrative incentives have kept the dealer lured
to Havells – Dealer Financing, Mutual Fund
scheme, Points based scheme
Unorganized players moving out of the
system…benefiting Havells
Rapid Expansion Plans. Products from
Sylvania not yet completely brought to
Indian markets
Strength of distribution: Majority of brands
face the issue of struggling distribution
which is not the case with Havells.
Focus on manufacturing: Always manufacturing is
at core of Havells strategy unlike competitors
Strengths Opportunities

14. Threats for Havells
Rising domestic competition: Havells is in a market where chances of occurrence of price wars is highly probable
thereby affecting profitability
Increasing raw material prices: Majority of businesses at Havells are highly sensitive to raw material prices.
Macro economic risks : Devaluation of rupee makes the Sylvania acquisition even more expensive and
taxing on the parent company
Saturation of the premium segment: Since Havells is not present in the low price market, the market it is
located in might get saturated
With increasing divisions the management hassles increase as well. With no experience of a global takeover,
Sylvania might create some issues in the parent brand
FDI Policies would encourage more foreign players in an already crowded market. State of Hypercompetition.

15. Financial Analysis
Returns on Invested Capital > 25%.
NET SALES GROWTH (CAGR for 5 years) – 33.3%
EPS Growth (CAGR for 5 years) – 27%
Sales and EPS grew by 16.13% and 37.86% in 2012
respectively
Debt to net profit ratio also showed improvement
from -58.43 in FY2009 to 2.63 in FY 2012.
D/E ratio improved from 2.01 in FY2009 to 1.07 in
FY2012.

16. Future Prospects
Havells is set on a
path of high
growth and is
emerging as a
category leader in
majority of the
verticals that it
functions in.
Havells products
are amongst top
3 in category for
70% of its profile
and amongst top
5 in 100% of its
product
categories.
With things from Sylvania’s
end getting sorted and the
macro economy starting to
look better, Havells would
look forward to bring global
brands to India which
would further improve the
offerings at Havells.
Also, with an
always improving
balance sheet,
Havells would be
able to attract
more
investments in
future if any be
essential.
The increase in
Branding and
advertisement
spend by Havells has
shifted it from a
Electrical Equipment
supplier to a
Consumer product
brand which would
in future the USP for
selling its offerings.
All and All, the stage
is set for Havells to
lead in all the
categories that it
functions in the next
5 years and then
diversify into other
businesses once
that is successful.