Havells India | Business Model | Financials | History | Future
llyod,standard, crabtree, promtec,reo
You will also understand, why havells is doing well in India
2. FOUNDER
• Late Sh. Qimat Rai Gupta
• started the company
• Bought havells in 1971
• Vision of better India
• Passionately helped the poor via CSR
3. CHAIRMAN & MD
• Anil Rai Gupta
• MBA in Marketing and Finance
• Wake Forest University in North Carolina, USA
• Led the diversification in 2003
• Actively participate in CSR
4. SOME FACTS ABOUT HAVELLS
• Started in 1958
• Bought Havells brand in 1973
• Got listed in 1993
• 2003 – launch of fans, CFL & lighting
• 2006 – Crabtree merged
5. SOME FACTS ABOUT HAVELLS
• 2007 – bought Sylvania
• 2010 – bought 100% share in Standard
• 2011 – Launch of Domestic Appliances
• 2017 – Launch of Personal Grooming Product
• 2017 - Acquired Lloyd consumer durable business
6. BUSINESS OF HAVELLS
• Havells is into 2 major businesses
• Electricals
• Home Appliances
10. FACTOR FAVORABLE FOR THE SECTOR
AND THE COMPANY
• Growing Urbanization
• Electrification
• Organized Penetration
• Young Demographic
11. HAVELLS STRATEGY
• Leverage channel by expanding product portfolio
• 2012 water heater
• 2013 domestic Appliances & pumps
• 2016 Aircoolers
• 2017 water purifiers
• Manufacturing facilities in 12 factory in North India
12. HAVELLS STRATEGY
• Better Distribution
• Town penetration – 1100
• Retailers count – 1lakh
• Havells galaxy – 653 which contributes 22%
• National Advertising and uniform discounting
• Mass to ‘mass premium’
• Acquisition of Sylvania and pragmatic exit
• Lloyd Acquisition
14. FUTURE FOR HAVELLS
• Plans to increase town penetration to 2283 from 1000 today
• Plans to increase retailer count to 200000 from 100000 today
• You can expect that sales will double when the above things happen
• High growth
• 14% in refrigerators & washing machine
• 17% in ac
• 15% in LED tv
17. FINANCIAL PERFORMANCE FROM 1993-2018
• Sales Growth – 29% CAGR
• Profit Growth – 32% CAGR
• Market Cap Growth – 37% CAGR
• Fun fact – If you would have invested only 1lakh during its IPO, you would today have
more than 28crores at current market cap of 40000crores.