Company Overview

Havells India Limited (NSE: HAVELLS) is a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. Havells enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires for Domestic, Commercial and Industrial Applications.1

The company pioneered the concept of exclusive brand showroom in the electrical industry with ‘Havells Galaxy’. Today over 500 plus Havells Galaxies across the country are helping customers, both domestic and commercial, to choose from a wide variety of products for different applications. Havells became the first FMEG Company to offer door step service via its initiative ‘Havells Connect’.  Thanks to the quality of products and quicker service, it has minimum customer complaints and highest customer satisfaction.

Today, Havells owns some of the most prestigious brands like Havells, Lloyd, Crabtree and Standard. Its network constitutes of 4000 professionals, over 7900 plus dealers and 40 branches in the country. The company's products are available in 40 countries. The company has 12 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Sahibabad, Faridabad, Alwar, Neemrana, Guwahati and Ghiloth manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry. Havells alongwith its brands, have earned the distinction of being the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. Havells offers same quality products for both Indian and International markets. It is committed to keep powering the world with its state-of-the-art innovations and energy-efficient solutions. Currently over 90% of its product offerings are energy efficient and manufactured in-house.

Manufacturing Facilities

As a manufacturing-oriented organization that works on the principle of 'Make in India', the company do not focus on productivity alone. The company work towards creating harmony between manufacturing output and efficiencies that deliver social, economic and environmental sustainability.2

Havells India has adopted world-class technology and automation to ensure that the company produce its goods efficiently with emphasis on conservation of energy and water in a sustainable manner. The company pursue methodology of Total Quality Managment to improve product quality and recycle and reuse its waste materials.

The company lay great emphasis on employee safety and accord it utmost priority. Havells India has created and sustain a work culture that is inspired by the Japanese Kaizen methodology.

Each plant works towards energy and process efficiency along with being socially responsible towards the resources of the village or town it is housed in.

  • ALWAR - Manufactures: Cables and Domestic Cables
  • BADDI - Manufactures: Switches and MCB's
  • FARIDABAD - Manufactures: Havells domestic and industrial switchgear – distribution boards, changeover switches, control panels, switch disconnectors and fuses
  • HARIDWAR (STANDARD PLANT) - Manufactures: MCB's, RCCB's, Distribution boards, fan assemblies and components, aluminium blades and plastic components for TPW (table, pedestal, wall-mounted) fans.
  • HARIDWAR - Manufactures: Ceiling fans, TPW, Personal fans and Domestic exhaust fans.
  • NEEMRANA - Manufactures: Lighting fixtures, CFLs, HID Lamps and Motors
  • SAHIBABAD -  Manufactures: Industrial switchgear –ACBs,MCCB, Load banks Capacitors, CFL components
  • GUWAHATI - Manufactures: MCBs and Switch Disconnectors.
  • GHILOTH - Manufactures: Air Conditioner

Business Segments


The Switchgear market growth is impacted due to slow residential and commercial buildings growth. However, its strategy to introduce innovative products and focus on expanding channel foot print has driven market share growth for both its domestic and industrial switchgears. The momentum gained in 2018 in industrial switchgears slowed down during the year owing to liquidity challenges of contractors and dealers, sluggish infrastructure development and muted electrification initiatives in the country. Continuing with its alliance with Hyundai Electric & Energy Systems Co. Ltd., the Company has strengthened its offering in Controlgears in industrial switchgears category, thereby increasing the addressable market and opportunities for Havells both domestically and export.3

The company's rural retail outreach initiative helped it to grow its Domestic switch gear business penetration significantly. In line with customer centric focus, Havells continues to invest in R&D, introduce innovative technology driven, operationally efficient products like IOT Alexa operated Switches, Connected Industrial Switchgear range which have received excellent response. Havells R&D has started work on next generation of Circuit Breakers to further expand the market share in B2B market segment.

The Switchgear division registered net revenues at Rs 1,498 crores during FY 2019-20 with contribution margins at 38.5% compared to net revenues of Rs 1,578 crores with contribution margins at 39.8% during FY 2018-19.


Cables and Wire industry has faced challenges during the year due to tepid demand from infrastructure, real estate and industrial segment. However, with Government infusing funds in infrastructure projects, implementation of strict RERA norms in real estate and bringing out strong industrial policy to encourage ‘Make in India’ concept, are likely to open prospects for B2B opportunities in Cables segment. Further, highways and railways infrastructure expansion, increasing the fold of cities under smart city project scheme and push for energy generation will provide much needed impetus to growth.

The company perceive current slowdown and delays in execution of projects as temporary phase, hence to capture future opportunities Havells India has invested in capacity building and new product addition in this segment.

The Cables division registered net revenues at Rs 2,994 crores during FY 2019-20 with contribution margins at 16.3% compared to net revenues of Rs 3,235 crores with contribution margins at 16.1% during FY 2018-19.

Lighting and Fixtures

Consumer behavior in lighting is changing dramatically. It is expected that consumer will be far more involved in this category. Lighting is now associated with wellbeing. It can reduce stress levels, soft on eyes for kids & elders, better sleep, aesthetics, better viewing experience, & comfort of usages. Similarly, for B2B customers it can optimize office spaces, better maintenance, productivity enhancement, reduced cost of ownership, smart poles, smart street lights and many other ways lighting can add value.

Though in long term this business seems to be moving in the right direction however in short term, price erosion, availability of low quality/low price products and time-lag in adaptation of new technology by customers are some of the reasons for subdued growth, especially in B2B business. While in B2C, increase in numerical distribution and rural reach helped in significant volume growth. In last few months the company could see some price increases and it is expected that prices in the industry will move upwards or at least will be stabilized. Standardization and regulations are also coming in shape.

The Lighting and Fixtures division registered net revenues at Rs 1,131 crores during FY 2019-20 with contribution margins at 28.6% compared to net revenues of Rs 1,303 crores with contribution margins at 28.1% during FY 2018-19.

Electrical Consumer Durables

Havells’ ECD segment has been focused on bringing consumer centric innovative products backed by technology to stay ahead of competition. Havells launched smart next generation IOT and voice enabled fan ‘Carnesia-I’. Apart from this, Havells also launched first in the industry, a 9 stage filtration based air purifiers.

Seasonal products with superior features helped garner overall growth. Havells is the leading brand in Water Heaters and not only gained market share but also was recognized by Bureau of Energy Efficiency as ‘Most Energy Efficient Appliance of the Year’ in Water Heater industry. Focus on omni channels especially in Modern Format Retails and E-commerce has helped in categories like Personal Grooming and Small Domestic Appliances. Alkaline based Water Purifiers are also making inroads in a highly competitive category

The company's ‘Make in India’ focus has helped it in ensuring better quality and consistent supplies. The company will be adding capacities in its Water Heaters and Fans categories in coming period.

The Electronic Consumer Durables division registered net revenues at Rs 2,216 crores during FY 2019-20 with contribution margins at 25.9% compared to net revenues of Rs 2,096 crores with contribution margins at 26.4% during FY 2018-19.

Lloyd Consumer

Lloyd is on a journey to become a comprehensive consumer durable brand. The journey has been in line with the expectations barring last couple of quarters where an industry wide disruption has triggered some variations in the short term

Hitherto, Lloyd was disproportionately dependent on imports for all its product categories. Increase in customs duty last year and continued weakness in Rupee resulted in increase in product cost both in absolute terms and relative to the competition. Further, the LED TV industry experienced onslaught of cheap products being flooded in the market by few foreign brands which triggered industry wide substantial price corrections. Lloyd being a relatively smaller brand for TVs was impacted significantly. The Company has already done course corrections to adjust to these Industry level changes and is confident that these disruptions do not impact the medium to long term plans.

There have been several structural improvements in last 2 years, most of which were seeded immediately after acquisition:

  • In-house manufacturing: Lloyd has recently setup a highly integrated and automated factory for Air Conditioners which will help improve the supply chain, quality and margins. The inhouse manufacturing is in line with the Havells’ philosophy of giving differentiated products with high quality standard. This will go in long way to improve the brand image for the consumer and will give confidence to the trade.
  • Portfolio expansion: Lloyd is expanding its portfolio both vertically and horizontally. There is emphasis on right product laddering, offering wide range of products including premium products. For ACs, Havells will use its own factory and for Washing Machines and TV, the Company will provide tools / moulds to its suppliers in India. The Company also plans to enter Refrigerator category in the coming 6 to 9 months.
  • LED TV space remains hyper competitive and faces frequent price erosion in the panel prices. The best way to manage such fluid environment is to have good inventory management so that the Company and channel inventory are not high and the carrying costs are in line with the prevailing trends. Lloyd has accordingly shifted its LED sourcing from imports to Indian ODMs / OEMs which will now give flexibility in terms of availability and improved costs.
  • Network Expansion: Post acquisition, Lloyd has been expanding its distribution reach both in the traditional channel as well as in the modern format retail. Entry into large retail chains has given access to ‘A’ class counters.

The Lloyd Consumer division registered net revenues at Rs 1,590 crores during FY 2019-20 with contribution margins at 10.6% compared to net revenues of Rs 1,856 crores with contribution margins at 17.1% during FY 2018-19.

Opportunities and Threats

  • Infrastructure investment: Union Government’s focus on infrastructure development in country is expected to create demand for electrical goods, particularly in products supplied to projects like street lights, cables and switchgears etc. Slowdown in the infrastructure activities may impact the near to mid-term growth prospects.
  • Favourable demographics: Favourable demographic indicators like urbanisation, increase in disposable income of individuals, aspiration for good quality products, nuclear families etc. are expected to catalyse the growth for electrical goods in mid-tolong term horizon. Change in consumer preferences post COVID-19 may change their behaviours to spend less.
  • Electricity Penetration: India has seen rapid growth in providing electricity access even in deeper pockets. Government initiatives like metering of houses, focus on reducing transmission loss of electricity and programmes like ‘Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) are creating many opportunities in new geographies for supply of electrical products. Though, any reduction on Government expenditure on electrification might impact the business dynamics of electrical goods industry negatively
  • Affordable Housing: Rapid urbanisation and migration to cities has given rise to affordable housing concept in India. Though the pace has been somewhat slow, during last year Government’s initiatives like special funding of stressed projects mainly in affordable and mid-income projects are likely to provide impetus in near future. However, continued slowdown in housing sector is likely to soften the demand in affordable housing segment
  • Under Penetration: Majority of consumer facing products in India have lower penetration vis-à-vis other emerging countries. It is expected that increase in per capita income and yearning for comfort could lead to exponential rise in penetration in medium to long term time frame. However, under penetration could lead to increased competition which may result in pricing disruption.

Risk and Concerns

  • Economic slowdown: Slowdown in the Indian economy due to current global developments could adversely impact growth in the short-term.
  • Slower than Expected Pick-up in Housing: Demand for new housing has been sluggish since couple of years. Continued weak demand for housing could impact demand for electrical goods.
  • Increase in Competition: Last year witnessed irrational pricing behaviour in market in various product categories. Though the same seems temporary in nature but it could negatively impact the industry for a short period of time.
  • Non-Availability of Regular and Quality Power: Availability of quality electricity is the key for demand of electrical products, any substantial shortfall in the supply of electricity may hamper growth prospects for the industry
  • Pandemic: Deterioration in supply chain and demand due to pandemic such as COVID-19 have emerged as a significant business risk

Financial Highlights

May 12, 2020, Havells India Limited  announced its financial results for the fourth quarter and year ended March 31, 20204

FY20 vs. FY19

  • Net Revenue for FY20 was INR 9,429 crores as against INR 10,068 crores in FY19.
  • EBIDTA for FY20 was INR 1,027 crores as against INR 1,183 crores in FY19.
  • Profit Before Tax for FY20 was INR 902 crores as against INR 1,146 crores in FY19.
  • Net Profit for FY20 was INR 733 crores as against INR 787 crores in FY19.

Q4 FY20 vs. Q4 FY19

  • Net Revenue for Q4 FY20 was INR 2,216 crores as against INR 2,753 crores in the corresponding quarter previous year.
  • EBIDTA for Q4 FY20 was INR 246 crores as against INR 315 crores in the corresponding quarter previous year.
  • Profit Before Tax for Q4 FY20 was INR 198 crores as against INR 301 croresin the corresponding quarter previous year
  • Net Profit for Q4 FY20 was INR 177 crores as against INR 201 croresin the corresponding quarter previous year.

Business Segments (Q4 FY20 vs. Q4 FY19

  • Electrical Consumer Durables reported revenue of INR 460 crores in Q4 FY20 as against INR 533 crores in the corresponding quarter previous year.
  • Switchgear business reported revenue of INR 351 crores in Q4 FY20 as against INR 408 crores in the corresponding quarter previous year.
  • Lighting and Fixtures business reported revenue of INR 265 crores in Q4 FY20 as against INR 382 crores in the corresponding quarter previous year.
  • Cables business reported revenue of INR 682 crores in Q4 FY20 as against INR 898 crores in the corresponding quarter previous year.
  • Lloyd reported revenue of INR 458 crores in Q4 FY20 as compared to INR 532 crores in Q4 FY19.

Recent developments

February 4, 2020: Havells India Limited announced the launch of Grande Heavy-Duty Air Conditioner from Llyod. The flagship product designed for the upcoming summer season was unveiled at the Pai International Store, Panjagutta in Hyderabad today. The flagship new model comes with advanced Heavy Duty Duo compressor providing comfort even in the harshest summers of 60°C outside temperature. To add to comfort of consumer, its 15m long air throw along with Smart Four-way swing, the AC provides cooling in every corner of the room.5

The Grande Heavy-Duty AC series improves the room air quality with its unique elements: Nano Silver Anti-Bacterial Eva Coils, Catechine Coated Dust Filter and Green Bio Air Filter giving the occupants of room healthy and purified air to breathe. Bringing smart connectivity at the consumer’s fingertips, the product offers advanced features such as Wi-Fi and voice-based connectivity with Smart speakers like Amazon Alexa, Google Home. The Heat Exchanger coil (the heart of the AC) is made of 100% inner grooved copper tubes with corrosion resistant coating making the airconditioner more efficient and durable against rain, dust & other corrosive elements in the air found in high humid coastal areas. Designed & developed in-house by its own R&D facility & state-of-theart manufacturing unit at Ghiloth, Rajasthan, the Grande Heavy-Duty series attests to Havells’ vision of Make in India, world-class products to Indian consumers. The newly launched Grande Heavy-Duty AC is available in 1 Ton and 1.5 Ton configuration in Inverter & Fixed Speed with 3 Star and 5 Star ISEER Ratings for the yar 2020.

February 5th, 2020: Havells India Limited announced the launch of its technologically advanced latest range of alkaline water purifiers with 50%+ water recovery. The new feature marks Havells’ commitment to provide an unparalleled water purifying experience to consumers.6

Many RO purifiers process around 70% of inlet water while recovering only 30% of purified water. Havells’ Delite Alkaline RO water purifiers processes more than 50% of inlet water, infusing them with essential minerals – giving consumers access to larger quantity of nutritious, healthy and purified alkaline water.

True to its brand promise of ‘Making a Difference’, the new range of water purifiers, for the first time in the country, would offer safe & healthy alkaline water with natural minerals fortifications. The promise would be delivered initially through two variants namely “Delite Alkaline High Recovery” and “Delite Alkaline”. Havells Delite is an indigenously developed and designed at its R&D facility and manufactured at its state-of-the-art manufacturing plant in Haridwar.

The Delite Alkaline range offer host of advanced consumer benefits such as protection through triple purification of 100% RO and UV with UV LED to maintain 24x7 tank hygiene of high-quality food grade stainless steel. Consumer are assured of 8+pH level of water by addition of essential alkaline minerals, a lower Oxidation Reduction Potential (ORP), which results in antioxidant water. Product design and styling is unique and it gives smart alerts on performance, cartridge life, preventive maintenance, power indicator, alerts in case of low water pressure, pump failure, self-diagnosis requirements.


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Created by Asif Farooqui on 2020/07/27 16:39
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