Organizational study on Havells India Ltd

CHAPTER-1

INTRODUCTION

1 SRM School of Management

Organizational study on Havells India Ltd INTRODUCTION

An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon. Organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Havells India Ltd is an electronic equipment company which is a subsidiary and flag ship company of QRG group, a billion dollar plus organization. QRG group is one of the fastest growing Electrical and power distribution equipment company in the

country, manufacturing products ranging from Building Circuit Protection , Industrial and Domestic switchgear ,Cables and Wires, Fans, CFLs, Luminaries, Bath fittings and Modular Switches. The business today operates in a world of relentless and real-time change as they approach the second decade of the 21st century. From shifts in the global climate to evolving economic and demographic trends in the local communities, they live and work in an environment that constantly challenges them to think a new about their customers, communities and responsibilities as a company. They embrace these changes and their accountability as a business starts with the customers, nearly 10,000 employees, investors, regulators, partners and communities. It ultimately extends to everyone who shares the interest in ensuring a clean, secure energy future from national policy makers to industry peers at home and even overseas. The business today operates in a world of relentless and real-time change as they approach the second decade of the 21st century. From shifts in the global climate to evolving economic and demographic trends in the local communities, they live and work in an environment that constantly challenges them to think a new about their customers, communities and responsibilities as a company. 2 SRM School of Management

Organizational study on Havells India Ltd They embrace these changes and their accountability as a business starts with the customers, nearly 10,000 employees, investors, regulators, partners and communities. It ultimately extends to everyone who shares the interest in ensuring a clean, secure energy future from national policy makers to industry peers at home and even overseas.

1.1.1 OBJECTIVE OF THE STUDY

Primary Objective:The primary objective of the study is to have a practical knowledge about the functioning of the organization.

Secondary Objectives: To understand the organization structure. To study various functional areas of the organization To understand the strategies used by the organization. To understand how Maslows need hierarchical theory matches with practice. To understand the duties and responsibilities of various department heads. To identify the strengths, weakness, opportunities and threats of the organization.

1.1.2 NEED OF STUDY The organization study has been conducted to get a practical knowledge about the functioning of department and also to understand the organization structure. The other important need of study was to check how Maslows need hierarchical theory matches with practice.

1.1.3 DATA COLLECTION METHOD There are broadly two types of data available to a researcher. They are:

3 SRM School of Management

Organizational study on Havells India Ltd (a) Primary data It refers to the first hand information collected by the researcher, specific to the research problem. It includes using different primary data collection tools such as personal interview using questionnaires, telephone surveys, mail surveys etc. For the present study, primary data was collected by survey method using questionnaires. (b) Secondary data It is the information that already exists for another purpose. This refers to all those data which are collected for some earlier research work. The secondary data for this work was obtained form company profile, company magazines, website, newspapers, internet, text books, reports and form company brochures and other promotional materials.

1.1.4 PERIOD OF STUDY This study has been conducted at Havells India Ltd, during the period 11May 2012 to June 30th 2012 1.1.5 SCOPE OF STUDY The study is confined to gain some knowledge about the culture and structure of the organization and the functions of departments of Havells India Ltd, Ernakulam. 1.1.6 LIMITATIONS The main constraints or limitations for the study were: Limited time available for the study. Authorities of all the departments had a busy schedule and hence there was no scope for detailed interviews or interaction with them.

4 SRM School of Management

Organizational study on Havells India Ltd

INDUSTRIAL PROFILE

5 SRM School of Management

Organizational study on Havells India Ltd ELECTRICAL INDUSTRY 1.2 WORLD SCENARIO Nature and characteristics of the Industry The worldwide electric power industry provides a vital service to modern life. It provides the nation with the most prevalent energy form known in historyelectricity. It advances the nations economic growth and productivity; promotes business development and expansion; and provides solid employment opportunities to workers globally in general and India in particular. It is a robust industry that contributes to the progress and prosperity of our nation. Today the electric power industry operates in a hybrid model of competition and regulation. The worldwide electrical and electronics industry is growing at a fast pace which consist of manufacturers, suppliers, dealers, retailers, electricians, electronic equipment manufacturers. Electrical industry has come out of the regulated and proprietary industry to deregulated, buoyant and competitive industry. Private companies entered the market and opened stiff competition after privatization and liberalization which have taken place in several countries. The liberalization of the electric industry showed the expansion and development. Electricity has been one of the most promising and challenging industries that have helped in shaping national economy. Electricity industry has been segmented in three basic parts like manufacturing, supply, and transmission, though transmission and distribution continue to be controlled in order to balance supply and demand so that transmission stability can be preserved. Because of liberalization, at retail level, choice of electricity providers has been expanded; as a result, customers can take advantage through switching over to a retailer who can offer electric power at lower price. Uses of petrochemicals are paramount in electrical industry so as to improve electrical manufacturing processes. The petrochemical industry mainly deals with electrical equipments such as instruments required producing and distributing electricity. These petrochemical products are vital for producing different electrical equipments as it helps in insulation, prevention of loss of energy, and safety. 6 SRM School of Management

Organizational study on Havells India Ltd Electrical components are found in different types of electrical devices and a fundamental building block. Electrical components are connected with each other as well as number of other devices. Electrical component either with the help of solders or printed circuit board is connected to the electronic circuit board to perform different function.

Electrical Components Types

Active electrical component Passive electrical component

Active electrical component has gain or directionality. Passive electrical component is without gain or directionality. Further these electrical components are covered in synthetic resins for mechanical stability. This also provides environmental protection as well as insulation.

1.2.1 INDIAN SCENARIO The Indian Electrical industry is now finding a good response for its products in the international markets. What has brought this about? The industry has invested in upgrading technology and improvements in quality systems so that it is able to offer products/systems contemporaneous to what the developed countries make at much lower price. Electricity has become an inseparable part of our daily life. In homes, offices, industries and hospitals they are myriad systems, equipment and sophisticated appliances that depend on electrical energy. Electrical equipment such as motors, transformers, switchgears etc. is used by all sectors of the Indian economy. Some major areas where these are used are the multi-core projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units etc.,

7 SRM School of Management

Organizational study on Havells India Ltd Indian electrical industry a. Prospects of the Indian Electric Industry Like every other industrial sector in India, the Indian Electrical Industry too is slowly emerging from out of its protective cover. Since the last decade, India has witnessed what global players have achieved and what they are capable of achieving. We are becoming aware of competition on our turf. Many organizations in this industry are looking overseas to develop the export markets owing to reduced demand at home.

b. Future Prospects The domestic market in India is itself large, and one must firstly satisfy this market with products that meet international quality standards. With increasing globalization, every international player is now operating in India, providing goods and services complying with international quality. The Electrical Industry in India is growing to its full potential in the coming years and no doubt India will soon come to be recognized for quality products and services which in turn, will bring this industry to a position of true leadership.

1.2.2 FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY Research and development played an important role to the increased productivity and higher-value added electrical products. Foreign investments accelerated growth in production and export as well. Global industries like medical, telecommunication, etc have been cordially supported by electrical industry. Increase in income changed living standards of the common mass. As a result, it increased the demand of electronics. Asia pacific region is emerging as the most spinning place for the consumer electronics india

8 SRM School of Management

Organizational study on Havells India Ltd

COMPANY PROFILE

9 SRM School of Management

Organizational study on Havells India Ltd 1.3 INTRODUCTION

About the company

QRG Group, a billion-dollar-plus group which ranks among the top electric product conglomerates in the worlds and is a major domestic and global player in the production and sales of an impressive range of electrical products. The group comprises of 4 companiesHavells India Ltd (the flagship company with Havells and Crabtree Brands), Standard Electricals Ltd, Havells-Sylvania and QRG Healthcare. The flagship company, Havells is acknowledged as a manufacturer & supplier of the widest range of low voltage electrical equipment and has become a name synonymous with excellence and expertise in the industry. Driven by a philosophy of dreaming big, empowering team members, a culture based on transparency, honesty, a high focus on ethical values and entrepreneurship at every level, the QRG Group of today is literally a dream come true-a world class company which is one of the most admired organizations in India. With a number of strategic alliances in place, QRG Group has shown phenomenal growth rate with the help of various joint ventures, acquisitions, mergers and takeovers. The group, catering to the needs of residential and industrial market globally, has 10 manufacturing units in India. Following its philosophy of thinking big, the groups product basket offers end-to-end electrical solutions. The company manufactures a wide range of high quality electrical products suitable for domestic and industrial use. QRGs International Business Division (IBD) is a dynamic team of professionals who are committed to fulfill the aspirations of the organization in the international markets. IBD caters its international clientele spread over 51 countries with offices in Dubai, China, Nigeria and distribution networks in all major countries. Innovation is the hallmark of every vital development at QRG. New ideas, inventions deepen scientific knowledge and give its workforce a new impetus towards technical progress. The responsibility of providing its customers the best products and zero defect services to enable them to be comfortable and secure in usage of electricity. 10 SRM School of Management

Organizational study on Havells India Ltd The group comprises of 4 companies: Havells India Limited Havells Sylvania CRABTREE Standard Electricals

1.3.1 Havells India Ltd Havells India Ltd is a billion-dollar-plus organization, and is one of the largest & Indias fastest growing electrical and power distribution equipment manufacturer with products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaries for Domestic, Commercial & Industrial applications, Modular Switches, Water Heaters and Domestic Appliances covering the entire gamut of household, commercial and industrial electrical needs. Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Luminance, and Linotile & Standard. With 94 branches / representative offices and over 5000 professionals in over 50 countries across the globe, the group has achieved rapid success in the past few years. Its 12 state-of-the-art manufacturing units in India located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and 6 state-of-the-art manufacturing plants located across Europe, Latin America & Africa churn out globally acclaimed products. Havells is a name synonymous with excellence and expertise in the electrical industry. Its 20000 strong global distribution network is prompt to service customers. The company has acquired a number of International certifications, like CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have emerged as the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. In an attempt to transform itself from an industrial product company to a consumer products company, Havells launched the consumer electrical products such as CFLs, Fans, Modular Switches Luminaries, Water Heaters and Domestic Appliances. The company has been consistent in its brand promotion with sponsorship of Cricket 11 SRM School of Management

Organizational study on Havells India Ltd events like T20 World Cup, India-Australia Series and IPL Season first, second, third and fourth. The company has also taken the initiative to reach directly to the consumers through Havells Galaxy a one stop shop for all electrical and lighting needs. Havells has more than 100 such Galaxies across the country. 1.3.2 Some of the Firsts from Havells Sets up India`s First New Generation CMH Lamp Plant at Neemrana in the year 2010 Launched India`s 1st HPF CFL in the year 2009 Havells launched India`s 1st BEE 5* Rated Fan in the year 2009 First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction of Hazardous Substances in CFLs in the year 2008 First Company to get the ISI Certification for complete range of CFLs in the year 2006 Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification in the year 2005

1.3.3 VISION "To be a globally recognized corporation that provides best electrical & lighting solutions, delivered by best-in-class people

1.3.4MISSION To achieve our vision through fairness, business ethics, global reach, technological expertise, building long term relationships with all our associates, customers, partners, and employees

12 SRM School of Management

Organizational study on Havells India Ltd 1.3.5 VALUES

Customer Delight: A commitment to surpassing our customer expectations. Leadership by example. A commitment to set standards in our business and transactions based on mutual trust.

Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best in class.

1.3.6 QUALITY POLICY

We are committed to maximize customer satisfaction by Dealing in world class electric products Helping customers in arriving at the right choice Providing quick product deliveries Rendering prompt after sales services Assuring closest customer interaction Our work life is characterized by ongoing learning and training and is monitored by a quality management system aimed at continual improvement in all processes.

1.3.7 QUALITY CONROL

The essence of quality is closely wrapped in the way we think, plan and work. It finds its true expression when we extend beyond ourselves to exceed our customers expectations. To deliver products those are safer, faster and simply better.

Each time, Building customer confidence through teamwork is a top priority to provide a wide variety of products and services. 13

SRM School of Management

Organizational study on Havells India Ltd Realizing and respecting the basic needs of customers to feel more secure, we've committed ourselves to make our products better, safer and smarter than what he or she is looking for. That's a passion that began 30 years ago and that's how it continues to be even today. Our customers rely on us and it is our responsibility to give them the very best. All our products are as per IEC standards. QRG has a simple rule on quality. If it doesn't exceed customer expectation, it's not quality performance.

1.3.8 CORPORATE GOVERNANCE The QRG Group defines corporate governance strategically, which encompasses not only what we do as a company with our profits, but also how we make them. It goes beyond philanthropy and compliance and addresses how our company manages its economic, social, and environmental impacts, as well as its relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. We as a company have been in lead in offering a portfolio of eco responsible products and services that deliver powerful, sustainable, energy-efficient solutions that don't compromise on capacity and security. Our eco responsibility initiative also focuses on how we run our business, and includes efforts to develop an alternative-energy strategy, and thus reduce the environmental impact of our operations. We strive to bring corporate responsibility to every aspect of our business. We're committed to managing a responsible and diverse supply chain that's consistent with our high standards for environmental and business practices.

1.39 EMPLOYEE RELATIONS Our people are the key to our success. Their skills, knowledge, ideas and enthusiasm drive our business. We have high-quality, diverse workforce and employees who fulfill their potential. We have achieved this by giving them development and advancement opportunities along with competitive compensation and benefits that appropriately reward performance. 14 SRM School of Management

Organizational study on Havells India Ltd We communicate widely with employees to demonstrate how their efforts contribute to our success and to listen to their concerns. We also encourage them to align with our vision. We are committed to open communications and a workplace where everyone's voice is heard. We use several channels to communicate with employees, including an internal web portal and company website along with communication sessions with the top management of the company. These sessions provide assessment of employee satisfaction and are inputs for business planning, management decision-making and company strategy development.

1.3.10 Work Culture QRG Group is continuously applying modern management techniques such as Kaizen to enable employees to improve their day to day functioning in small steps, one at a time. QRG has also implemented Japanese version of 5S which stands for an a place for everything and everything in its place. The company has introduced these techniques as it firmly believes the small changes add up to large results and the only way for a corporation to grow, is to make its people grow. The Group is driven by qualified and experienced professionals backed by a work force of over 8000 employees. All branches and manufacturing facilities are computerized and networked with each other. An open door policy at all levels encourages employees to be participative, innovative and creative. Empowering employees helps the organization in harnessing individual talents to the fullest. Emphasis is laid on building team spirit which helps employees to realize collective potential.

15 SRM School of Management

Organizational study on Havells India Ltd 1.3.11 MILESTONES IN QRG GROUP

1958: Commenced trading operations in Delhi. 1971: Bought HAVELLS Brand. 1976: Set up the first manufacturing plant for Rewire able Switches and Changeover Switches at Kirti Nagar, Delhi. 1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi. 1980: Started manufacturing high quality Energy Meters at Tilak Nagar,Delhi. 1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with Geyer, Germany. 1990: Set up a manufacturing plant at Sahibabad, UP for Changeover switches. 1996: Acquired a manufacturing plant at Alwar, Rajasthan for power cables and wires. 1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing customized packaged solutions. 2001: Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.

2002: Standard Electrical Company becomes a 100% Subsidiary of the company Attained the IEC certification for Industrial switchgear and CSA certification for all manufacturing plants.

2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of switch gear. Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryana. 2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida. 2005: Set up manufacturing plant in Haridwar, for manufacturing fans. Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification. Set up of Research & Development Center in Noida H.O. 16 SRM School of Management

Organizational study on Havells India Ltd 2006: Crabtree India merged with Havells India. Added CFL production unit in Haridwar manufacturing plant. Expansion at Alwar manufacturing plant for increase of production control. Expansion at Baddi manufacturing plant and set-up of an Export Oriented unit. .2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000 KVAr per month. Acquired the lighting business of a Frankfurt based company "Sylvania", a global leader in lighting business and now the company's turnover crosses US$ 1 Billion. 2008:First Indian CFL manufacturers to have adopted ROHS, European norms on Restriction of Hazardous Substances in CFLs. Set up of Global Corporate office, QRG Towers at Expressway Noida. Investment of Rs.50 Cores in Global Center for Research and Innovation (CRI)Set up of fully automatic plant for Havells Lafert Motors at Neemrana. Change in Corporate brand identity.

2009: Global consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes. Launch of Indias first HPF CFL. Launch of Indias 1st BEE 5 Star Rated Fan.

2010: Launch of Havells brand in US and Mexico. Inauguration of fan manufacturing unit 2 at Haridwar. Acquired 100% result in Standard Electrical. Set up Worlds First New Generation CHM Lamp Plant at Neemrana. Enter into Electric Water Heaters Business.

2011: Launch of new range of Control Gear Cosmic Star series. Set up of new Industrial Switchgear Plant in Sahibabad. Launch of Domestic Appliances. Standard Electrical merged with Havells. 17

SRM School of Management

Organizational study on Havells India Ltd

PRODUCT PROFILE

18 SRM School of Management

Organizational study on Havells India Ltd 1.4 PRODUCTS Products are like windows which will expose the company to the outer world. Each company produces unique product. In the case of Havells which is an electrical and power distribution equipment manufacturer, its products ranging from Industrial & Domestic Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water Heater, Havells Modular Switches, Crabtree and Standard Electrical Products.

Building Circuit Protection

Havells India Ltd has emerged as preferred choice for discerning range of individual and industrial consumers. Havells is the largest manufacturer of MCBs in the country and 30% of the MCBs sold in UK are Havells manufactured. The products are approved by international quality bodies such as KEMA, UL, CSA and are as per IEC standards. Miniature Circuit Breaker (MCB) Isolator Changeover Switch Residual Current Circuit Breaker (RCCB) RCBO Distribution Board (DB) Indicator Light Automatic change over with current limiter (ACCL) Industrial Circuit Protection

Havells India Limited is leading manufacturer of low voltage Industrial products for Three Phase and Single Phase power distribution, switching control and protection requirements.

Panel Board system Changeover Switch By-pass Changeover Switch

19 SRM School of Management

Organizational study on Havells India Ltd

Load Changeover Switch Automatic Transfer Switch Switch Disconnector Load Changeover Switch Automatic Transfer Switch Switch Disconnector Control Gear Switch Disconnector Fuse Fuse Switch and Switch Fuse Chamber System Fuse Holder Nylon Fuse Base Fuse Link and Fuse Base
Motors Havells is manufacturing three phase LV Motors at Neemrara (Rajasthan).The motors are manufactured with technical collaboration with Lafert who are now the owners of AEG Electric Motors. The plant has a capacity to manufacture over 300000 nos. energy efficient motors per year. The complete ranges of motors are manufactured in- house and the plant and machinery has been procured from AEG Electric Motors.

Foot Mounting Flange Motor Foot Cum Flange Inverter Duty Motors with Forced Cooling Crane Duty Motors Brake Motors

20 SRM School of Management

Organizational study on Havells India Ltd Capacitors

Havells capacitors are designed and manufactured using S3 technology. It encompasses product with triple shield with differential disconnector. Advanced technologies adopted in the capacitors offer unmatched safety and outstanding performance under Indian conditions. Normal Duty Heavy Duty Super Heavy Duty Agriculture Duty Motor Run Capacitors CFL

The company feels proud and privileged to share with you one fine innovation of making Havells CFLs more environment friendly by introducing Indias first Green CFL, manufactured using Pill Dosing Technology(PDT). Havells is the largest exporter of Lilliput CFL under brand name Havells Sylvania and has been awarded the best CFL in Sweden & France. Retrofit Non Retrofit Higher Range Liliput FPL Modular Plate Switches

Havells Switches are aesthetically designed modular plate switched that are engineered to deliver protection and built to last. They are an architects invention while

21 SRM School of Management

Organizational study on Havells India Ltd keeping an Italian flair in his mind. They are one of the best modular switches available in India, both aesthetically and technically Havells Modular Switches Crabtree Modular Switches Lighting

Havells owns a wide range of energy efficient luminaries for domestic and decorative applications .Lighting is important and the quality of light affects every walk of modern life. A better understanding of light will enable you to use it more effectively. LED Lighting Consumer Lighting Commercial Lighting Down Lighter Landscape Bunker Lighting Industrial Lighting Area Lighting Road Lighting Specialty Lamps Accessories Aura Lighting Fans Havells entered fan business in mid-2003 and has emerged as one of the fastest growing brand in the market. From premium fans in exquisite antique finishes to fans specially designed for kids to dual color fans and super speed fans. Ceiling Fans Table Fans Wall Mounting Fans 22 SRM School of Management

Organizational study on Havells India Ltd Air Circulator Fans Ventilating Fans Pedestal Fans Cables & Wires Set up in the year 1996, Havells Cables plant (an ISO: 9000-2000 certified unit) is located in Alwar, in the state of Rajasthan. All cables and wires are manufactured on most modern laser controlled automatic machines, using best raw material from primary manufacturers ensuring perfect quality. Power Cables Aluminium Control Cables Copper Copper Flexible Cables Latest Innovation A pioneer in the switch industry, Crabtree introduces its latest innovation in wiring solutions, I-sense. An intelligent switching system equipped with an IR remote, I-sense is a combination of sophisticated design and advanced mechanism. Crabtree does not create, it innovates.

23 SRM School of Management

Organizational study on Havells India Ltd

MANAGEMENT PROFILE

24 SRM School of Management

Organizational study on Havells India Ltd 1.5 CHAIRMANS PROFILE The group's phenomenal success over the years has been due to Mr. Qimat Rai Gupta's mantra of "growth through quality, innovation and market consolidation". His focus on research and development has enabled the group to develop products for consumers that offer great value for money. His constant emphasis on promoting energy conservation and environmental preservation coupled with his philanthropic service to the economically weaker section of the society is his way of giving back in return to the society that has helped this organization realize its true potential. Mr. Gupta has held various responsible positions in Trade and Commercial associations of the Industry from time to time. He has, in his past, served as the President of Federation of All India Electrical and Trade association. Mr.Qimat Rai Gupta has been recognized by various sections of the industry for his path breaking work in this segment. Amongst the acknowledgments bestowed upon him, Mr.Gupta received the Self-made Entrepreneur Award "Udyog Patra" in 1989, Distinguished Entrepreneurship Award 2004, from the PHD Chamber of Commerce and Industry in 2004, Udyog Vibhushan from the Institute of Trade & Industrial Development, Delhi in 2005 and Udyog Ratna from PHD Chamber of Commerce & Industry for Economic Contribution to Uttaranchal State in 2005.

1.5.1 BOARD OF DIRECTORS

Mr. Qimat Rai Gupta (Chairman & Managing Director) Mr. Anil Gupta (Joint Managing Director) Mr. Surjit Gupta (Director) Mr. Rajesh Gupta (Director Finance) Mr. S.B.Mathur (Director) Dr. Abid Hussain (Director) Mr. A.P.Gandhi (Director) Mr. Nitan Malhan (Director) Maj.Gen.D.N. Khurana (Director) Mr.V.K.Chopra (Director) 25

SRM School of Management

Organizational study on Havells India Ltd Company Secretary Auditors Bankers : Sanjay Johri : M/s V.P Bansal & Co. Chartered Accountants : Canara Bank, IDBI Bank, State Bank of India, Corporation bank, Yes Bank Registers and Transfer Agents : MCS Limited (Havells India Ltd) Listed on Corporate office : The National stock Exchnage of India Ltd, The Bombay Stock Exchange Ltd : QRG Towers, Noida

1.5.2 CERTIFICATIONS The Company has acquired a number of international certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), and EDD (Bahrain) for its various products to expand its reach in international arena. 1.5.3 MANAGEMENT SUMMARY Successful turnaround of Sylvania, the international subsidiary acquired in 2007, has shown the ability of your management of getting the things in shape. The last two years bring challenging environment through global recession. They successfully implemented major restructuring plans in Europe and Latin America, rounding out our transformation into a customer focused, agile, profitable, market driven health and well being company. They have moved their European headquarters to London so as to build our business on the more global platform. Havells has made good progress during financial year 2010-11. Their business model is based on the consumer and dealer relationship which has contributed immensely to the financial performance. A structural change is clearly visible in the Indian consumer favoring quality products with strong brand. Keeping with the times Havells has emerged as a premium quality & diversified product Portfolio Company with strong brand leadership and reliable distribution channel.

26 SRM School of Management

Organizational study on Havells India Ltd

1.5.4 Communication process at Havells India Ltd

Communication network of the company is same as the organizational chart. The flow of information is from top level to the bottom level. In German Motors the management follows the traditional hierarchal communication pattern, wherein if a worker needs to communicate to the manager, he has to follow his hierarchal path. But at the same time the manager has opened his doors whereby anyone can walk in to communicate with him

Downward Communication Downward communication in Havells India Ltd moves from the top to the

bottom authority. Downward channels are used for passing on managerial decisions, policies and programmers to subordinates down the line of their understanding and implication. Top management communicate with the lower levels through Circulars, meetings, seminars, monthly conferences, mails.etc

Upward Communication Upward communication in the company is when it flows from the

subordinates to top management. Upward communication is used by subordinates for transmitting information, ideas, views and request to their superiors on relating to their jobs, responsibilities etc. Workers communicate with superiors through regular mails, telephones, meetings etc

Horizontal Communication Horizontal communication at HIL is when the workers of the same position

communicate each other. It is mainly done through telephone, through mails and direct interaction.

27 SRM School of Management

Organizational study on Havells India Ltd 1.5.5 CORPORATE SOCIAL RESPONSIBILITY While it acquires companies and builds internally, QRG Group never loses sight of its responsibility as a good corporate citizen. Shri Qimat Rai Gupta, believes that serving people with meager or no means is the duty of every well-to-do person. For instance, the company is providing mid-day meals to around 350 government schools in Alwar district, covering 30000 students per day. Havells has a spacious kitchen with modern kitchen equipment and utmost care is taken in terms of hygiene while preparing and serving food. This has greatly increased the number of children attending school regularly and also alleviates hunger. Besides this the company has acquired land for constructing a larger kitchen with all the modern facilities to serve freshly cooked food to 50000 students in the area. Havells runs a mobile Medical Van, equipped with a trained doctor and necessary medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. The company also set up free medical check-up camps. In the past also, the company has generously contributed to the society during various national calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund etc. Corporate Social Responsibility (CSR) at QRG portrays the deep symbiotic relationship that the group enjoys with the communities it is engaged with. As a responsible corporate citizen, we try to contribute for social and environmental causes on a regular basis.

28 SRM School of Management

Organizational study on Havells India Ltd

1.6 ORGANISATION STRUCTURE OF HAVELLS INDIA LTD

JOINT MD

DIRECTOR

OPERATIONS/ PRODUCTIONS

HUMAN RESOURCE

FINANCE

MARKETING

PRESIDENT

PRESIDENT

COMMERCIAL & ADMINISTRATION HEAD

PRESIDENT

VICE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT Asst. GENERAL MANGER

GENERAL MANAGER

GENERAL MANGER

Asst. GENERAL MANAGER

BRANCH MANAGER

COMMERCIAL & ADMINISTRATION HEAD

SALES MANAGER

Asst. SALES MANGER EXECUTIVES

OFFICERS 1 2 EXECUTIVE

29 SRM School of Management

Organizational study on Havells India Ltd

1 1

2 1

COMMERCIAL ADMINISTRATION

MANUFACTURING HEAD

PURCHASE HEAD

ENGINEERS CLERICAL STAFF ENGINEERS CLERICAL STAFF

RECEIVABLE

ACCOUNTS

COMMERCIAL

C&F

SUPERVISORS

CLERICAL STAFF

CLERICAL STAFF

WORKERS

CREDIT CONTROL DEPARTMENT

SALES Sales

PURCHASE

30 SRM School of Management

Organizational study on Havells India Ltd

CHAPTER-2 FUNCTIONAL DEPARTMENTS

31 SRM School of Management

Organizational study on Havells India Ltd

2.1 OPERATIONS / PRODUCTION DEPARTMENT

OPERATING HIERARCHY

V.P

GENERAL MANAGER

COMMERCIAL ADMINISTRATI ON HEAD

MANUFACTURING HEAD

PURCHASE HEAD

ENGINEERS ENGINEERS CLERICAL STAFF CLERICAL STAFF SUPERVISORS

WORKERS

32 SRM School of Management

Organizational study on Havells India Ltd Plant Locations Haridwar Baddi Noida Faridabad Bhiwadi Alwar Neemrana

Manufacturing Plants An integral part of the Havells umbrella, Havells switchgear is a leading name in the circuit protection devices in India. Catering to the needs of discerning customers, the company is the largest manufacturer of MCBs in the country and amongst the top 10 in the world. Manufacturing units have complete in- house facilities equipped with state of the art machines for conducting short circuit tests and mechanical tests. Manufacturing units are ISO 9001-2000 certified & products boast of quality certifications from various international quality bodies such as UL, CE, KEMA and VDE as per IEC standards for taking protection to a new level. Havells cables manufacturing plant located in Alwar, Rajasthan is a BASEC approved cable plant is the largest cable manufacturing unit in India. At Haridwar Havells has set up Indias largest integrated fan manufacturing facility, with production capacity of four lakh fans per month. Motor & CFL manufacturing plant at Neemrana has an installed capacity to produce around 20000 units per month making it the largest motor manufacturing unit the country. 50% of the motor production in this plant is to export to European countries finding applications in various sectors. Havells is the second largest manufacturer of CFLs in the domestic market and the first manufacturer in India to make ROHS compliant eco- friendly CFLs.

33 SRM School of Management

Organizational study on Havells India Ltd Production Planning & Scheduling In Havells production is mainly based on its monthly sales, plans and the budgets. Havells has its own warehouses in all its plants and also in its branch offices . In Kochi, Havells has a warehouse at Willington Island.

Products manufactured in each plant Switchgears Baddi (H.P) Wire & Cables Alwar ( Rajasthan) Industrial Switchgear Faridabad (Haryana) Capacitor Noida (U.P) Fan Haridwar CFL & Motor Neemrana

34 SRM School of Management

Organizational study on Havells India Ltd 2.2 HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE HEIRARCHY

V.P

GENERAL MANAGER

Asst. GENERAL MANAGERS

COMMERCIAL & ADMINISTRATION HEAD

EXECUTIVES

The Human Resource department in Havells India Ltd is headed by the V.P Human resource. Havells considers its human resource as a valuable tool with emphasis on enhancing their productive capacity. Human resource covers everything from wellness, safety and benefits of employees to their administration, motivation and communication. Nearly 8000

Professionals are employed in Havells India Ltd (HIL) in over 50 countries across the globe. The total employee strength of HIL, kochi branch is 75. 35 SRM School of Management

Organizational study on Havells India Ltd Functions of Human Resource Department Recruitment and Selection Training and Development Performance Appraisal Compensation Grievance Handling Employee Safety

Recruitment In Havells India Ltd. recruitment is done through internal and external sources. The internal source of recruitment is done by the company itself in form of direct recruitment from colleges. In this case maximum 4 candidates are selected. The external source of recruitment is done through consultancies

Selection Process In case of selection of candidates for top level position, the applicants have to go through interviews with the Directors. In case the selection is for the employee of middle level management he or she will be interviewed by the department heads. The candidates have to do a presentation before the heads after collecting the relevant information about the products of the company. The qualification should be an Engineer and MBA from premier business school. While selection, preferences are given to candidates who have work experience in any of company which deals with electrical equipment. If recruitment is for any managerial position more importance is given to their background, educational qualifications, talent, communication skill, experience etc.

36 SRM School of Management

Organizational study on Havells India Ltd Training and Development Once the candidates are selected, orientation and induction classes are given to the candidates. Both On the Job and Off the Job training are given to the employees. Each employee is given training as per the job requirement and it is given by the respected branch itself.

Performance Appraisal In Havells India Ltd the performance appraisal is being done on a yearly and half yearly basis. A questionnaire is given to the employees and they have to fill it and return it back. Its a 3 level process and the employees are evaluated after completing all these levels. The employees are judged by their performance. Every department is assigned with a target and the members in that department have to reach the target within the time prescribed. If they achieve their targets then they are rewarded with the points and finally these points are calculated to evaluate the performance of the employees and to provide the incentives.

Employees Safety A top priority of every employer should be to take the time and initiative to help and protect their employees. If an employee becomes injured at work, the business may suffer. In Havells India Ltd. all employees are covered by insurance and also the company has its mediclaim policy for its employees. Employees are provided with: Sick Leave (15 days) Earn Leave (15 days)

37 SRM School of Management

Organizational study on Havells India Ltd Compensation and Grievance Handling In HIL the matters regarding compensation will be decided by the branches itself. Compensations are provided after the enquiry. Havells repair or replace products at their discretion, if the products are found to be defective, solely as a result of faulty material and or workmanship, within 10 years from the date of purchase.

38 SRM School of Management

Organizational study on Havells India Ltd 2.3 FINANCE DEPARTMENT FINANCE HEIRARCHY COMMERCIAL & ADMINISTRATION HEAD

CREDIT CONTROL DEPT

COMMERCIAL ACCOUNTS

C&F

CLERICAL STAFF

CLERICAL STAFF

SALES/PURCHASE

Fund management is crucial and important for the companys growth. The financial system of the organisation is responsible for the management of funds. A team of senior management periodically review organisations funds requirement. The companys financial management has held it in good stead over the years The finance department is headed by Administration head. Every branch is a separate profit centre and maintains separate accounts. There are separate staffs for accounting in each branch. The department prepares monthly performance report which is sent to head office for analyzing the operational results. There will be a performance review meeting every month to evaluate branch performance. The monthly report from branches is consolidated at the head office to know the overall result of the company. There are 3 levels of internal audit. The branches are audited by staff from the head office. There is internal audit by cluster accountants. There is internal audit by external auditors. 39 SRM School of Management

Organizational study on Havells India Ltd The internal audit observations are sent to the branches for seeking the clarification and for rectification. Sources of funds Basically long term funds are required for creating financial assets and short term funds are needed for working capital purpose. There are various sources of funds. The primary one of the company is share capital. It can be in the form of owners funds and funds from the public. For floating the company, the promoters of the company invests funds in share capital and that is termed as promoters funds. For meeting further requirement of funds are collected from the public and shares are issued in lieu of that. Havells India has issued 41, 60,000 Equity Shares to Sea crest Investment Ltd at an issue price of Rs 625/- per share. The next source of fund is borrowed fund. This can be by way of working capital borrowing from banks. Deutsche Bank has provided various credit facilities to the company for an amount equivalent to Euro 14 million.

Significant accounting policies of Havells India Ltd. The financial statements have been prepared under the historical cost convention as a going concern accrual basis in accordance with the generally accepted accounting principles and as per the companies Act 1956 Fixed assets are accounted at cost of acquisition inclusive of inward freight duties, taxes, and incidentals expenses related to acquisition and installation of the concerned assets. Fixed assets are further adjusted by the amount of CENVAT credit availed. Depreciation has been provided on Straight line method at the rate prescribed under schedule X1V in the companies act 1956. Inventories are valued on the basis of moving weighted average method. Raw materials stores, spare parts and packaging materials are valued at lower of cost or net realizable value. Transaction in foreign currency is recorded at the exchange rate prevailing at the date of transaction. 40 SRM School of Management

Organizational study on Havells India Ltd The revenue expenditure on Research and Development is charged as an expense in the year in which it is occurred. Current tax is determined as the amount of tax payable in respect of taxable income for the period. The main reports generated from the finance department are profit and loss account and balance sheet. They are taken monthly and annually. Havells India Ltd. installed SAP system software, which is designed to support their complete business management. SAP is used in systems to handle invoice payment, production resource management and financial account control. The main advantage of using this software is that an employee in one branch can access the details of other branches.SAP works in an ON / OFF mode. Customers can place their orders in Customer Portal. In HIL, Kochi branch SAP software is used for billing, cheque punching, entry of cheque against bill, issue of credit/debit notes.

Payback period Havells generally follows certain rules in payback period. If a dealer is new, then he/she has to make an advance payment. But in case of existing dealers the payback period is 45 days. If the customer pays the amount within 15 days then the company will give 3% CD. If it is within 30 days then the CD rate is 2%. And the payment is made after 45 days then no CD is provided.

41 SRM School of Management

Organizational study on Havells India Ltd 2.4 SALES / MARKETING DEPARTMENT

MARKETING HEIRARCHY

V.P

Asst. GENERAL MANAGER

BRANCH MANAGER

SALES MANAGER

Asst. SALES MANAGER

EXECUTIVES &OFFICERS

For every sales oriented institution sales department has its own significant role to play. As a sales oriented company this department is very important department in Havells India Ltd. All other departments are directly or indirectly depend upon the entire sales team. The sales and marketing functions of Havells India Ltd are under the control of General Manager (Sales and Marketing). 42 SRM School of Management

Organizational study on Havells India Ltd SALES OPERATIONS The sales operation consists of the processes like marketing, procurement and delivery. For marketing of a product a thorough knowledge of the market should be known. For this purpose a market analysis should be done. Optimized method of procurement and delivery helps in customer satisfaction, which in turn helps in their retention. A satisfied customer is an asset to the organization, who will pass through a process cycle of recommendation, revisit and repurchase. Havells India Ltd. has pioneered itself in the manufacturing and exporting of electrical products over the last 5 decades. The company has already established their global presence across 5 continents and 50 countries with 91 branches and 8000 employees. Deals in: Domestic products Industrial products Fans Wires UG cables Luminaries CFL Crabtree switches Havells modular plate switches Motors Capacitors

New launches 2010 Geysers

43 SRM School of Management

Organizational study on Havells India Ltd MARKETING OPERATIONS The company does not sell their products directly to customers, but through dealers. Major marketing activities are concentrated towards big clients such as institutions; hospitals etc, so that sales can be made in bulk. A normal customer can purchase the companys product from dealers of the products. A marketing team is formed within the company within each branch so that specific targets are made and is seen that maximum sales is accomplished. Every marketing executive is assigned with monthly targets, which is the amount of sales that he must acquire within a period. For that the executives contact the dealers and new clients. The Marketing Team is headed by the Marketing/Sales manager of each branch. The manager sets out the target sales that should be accomplished monthly in accordance with guidelines from the head-office.

Product Mix

Industrial products Titania Air circuit Breaker Load line molded case circuit breaker Load line digital molded case circuit breaker Load bank panel board system Power line contractor

Domestic products Euro breaker MCB Euro breaker Mini MCB & isolator Euro breaker RCBO Euro breaker Isolator Euro breaker changeover switch

44 SRM School of Management

Organizational study on Havells India Ltd Fans Ceiling fans Table fans Wall mounting fans Exhaust fans Pedestal fan Lighting Commercial lighting Down lighter Consumer lighting Area lighting Road lighting Industrial lighting Land scape lighting Lamps

Crabtree switches Athena (dust free switches) Ovation (designs for classic look) Platinum (ideas for interior designers) Sapphire (a boon for home owners) Emerald (inspiration for architects) SERENE (for silent moments) Surrounds (elegance for every moment) Stripes (classic lines, modern styles) CASA (under floor box)

45 SRM School of Management

Organizational study on Havells India Ltd Havells modular plate switches CORAL One module cover plate with one way indicator switch Three module cover plate with 6A3 pin socket &one way switch Four module cover plate with universal socket & one way switches

PEARLZ One module cover plate with one way switch Three module cover plate with universal socket & one way switches Two module cover plate with telephone socket & TV socket

DISTRIBUTION BOARDS (DBs) Designer DBs (suitable for surface & flush mounting) Single pole & neutral(suitable for single phase supply) Three pole & neutral(suitable for single phase & three phase) Special phase(suitable for three phase incoming supply) MCB enclosure(plug & socket provide protection to A/C)

Branches North o Dehradun o Delhi o Haryana o Noida o Ludhiana o Jammu o Jaipur o Kanpur
o

Chandigarh 46

SRM School of Management

Organizational study on Havells India Ltd East o Bhubaneshwar o Guwahati o Kolkata o Siliguri o Jamshedpur o Patna West o Indore o Rajkot o Mumbai o Nagpur o Pune o Rajpur o Surat

South o Bangalore o Chennai o Coimbatore o Hyderabad o Kochi o Vishakapatnam

Clients Electricians House owners Builders 47 SRM School of Management

Organizational study on Havells India Ltd Architects Institutions (schools, colleges, hospitals) Projects (hotels, offices, complexes) Contractors Electrical consultants Interior designers Havells has its own clients not only in terms of domestic market but also in international markets such as Singapore, Malaysia, Iran, Bangladesh, Russia, Australia, Greece, and Srilanka.

Competitors Legrand ABB Finolex Philips Wipro Bajaj Khaitan Crompton greaves Seimens

PRICING STRATEGY Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions and promotion. The pricing strategy used in Havells India Ltd. is Product- based pricing. HIL sets price based upon the quality of the product, purely not on the basis of competitive

48 SRM School of Management

Organizational study on Havells India Ltd products. Market conditions are also taken into consideration while setting the price for the product.

PROMOTIONAL STRATEGY The company has been promoting its brand through sponsorship of cricket events like Champions Trophy, Champions League, IPL Season 2, IPL Season1, and T20 World Cup. The company has also taken the initiative to reach directly to the consumers through "Havells Galaxy" a one stop shop for all electrical and lighting needs. This is yet another initiative by Havells targeted at end-users, architects and Consultants, to showcase Havells products. The Galaxy symbolizes Havells innovative leadership position in the Electrical and Power Distribution equipment market. It serves to provide an array of electrical appliances and consumer products, all created to adhere to the demands of modern living. The products they offer combine the attributes of elegance, technological advancement and convenience all in one. In order to promote the produvt Havells India Ltd. Conduct seminars at corporate level, advertisements in televisions, magazines, In-shop displays, dealers meeting, product catalogue.

49 SRM School of Management

Organizational study on Havells India Ltd

CHAPTER-3 OBSERVATIONAL ANALYSIS

50 SRM School of Management

Organizational study on Havells India Ltd 3.1 MASLOWS THEORY From Maslow's theory of motivation, modern leaders and executive managers find means of employee motivation for the purposes of employee and workforce management. The basis of Maslow's theory of motivation is that human beings are motivated by unsatisfied needs, and that certain lower needs need to be satisfied before higher needs can be addressed. Per the teachings of Abraham Maslow, there are general needs (physiological, safety, love, and esteem) which have to be fulfilled before a person is able to act unselfishly. These needs were dubbed "deficiency needs." While a person is motivated to fulfill these basal desires, they continue to move toward growth, and eventually self-actualization. The satisfaction of these needs is quite healthy. While preventing their gratification makes us ill or act evilly.

Maslow's Hierarchy of Needs Chart

As a result, for adequate workplace motivation, it is important that leadership understands which needs are active for individual employee motivation. In this regard, Abraham Maslow's model indicates that basic, low-level needs such as physiological requirements and safety must be satisfied before higher-level needs such as selffulfillment are pursued. As depicted in this hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', when a need is satisfied it no longer motivates and the next higher need takes its place.

51 SRM School of Management

Organizational study on Havells India Ltd 3.2 SWOT Analysis

STRENGTHS Expertise in the field since last four decades Technology leadership Excellent Brand Perception Wide Dealer Network Excellent after sales service Value for money Skilled Motivated Manpower Wide product range

WEAKNESS Huge amount spent for promotional activities

OPPORTUNITIES Ever increasing demand for electrical equipment products due to boom in real estate sector The scope for opportunities is wide ranging in that a company will try to make better use of finance, marketing and other resource based aspects of the business work more smoothly and efficiently.

THREATS Highly competitive industry Large number of reputed players in the same field High cost of raw material Threats include where a company has a successful product on the market or Product concept, then the threats would be that someone else would try to copy that concept and market it at a similar or at a lower cost. 52 SRM School of Management

Organizational study on Havells India Ltd

A slowdown of the World Economy coupled with Indian economy is quite possible for the short term due to current global developments. Due to the strong linkage of the manufacturing industry to the economy, such an event would adversely impact growth in the short term for the company

3.3 Havells Strategy Globalisation

Globalisation at Havells is a term for the horizontal and vertical integration of manufacturing and trade on an international level. In addition to the expanding business in India, Havells was looking to expand the geographical footprint. To remain competitive in today's scenario of consolidation and to have sustainable development, aggressive measures should be implemented to expand business. Starting business internationally is as defensive as an offensive play. Changing slowly to economic alterations in today's world could ultimately harm the business in long run. Through international acquisition, Havells is vying for a reasonable share in the high entry barrier markets of developed countries and is capturing buoyant growth Prospects in the developing countries. The key strategy behind Sylvania acquisition was to acquire a brand with global presence over last 100 years in the electrical space and to get access to strong distribution network spread across Europe and Latin America. Also globalization is necessitated due to competition with lowest cost producers across geographies. While modern trade is ushering in the 'global village', very significant national differences remain in culture, consumer preferences, and business practices. Havells strategy is to keep local preferences intact and to leverage on the key strength of each cluster.

53 SRM School of Management

Organizational study on Havells India Ltd

Growth in developing economies A seismic change is visible in the world's economic geography led by the developing economies of Asia, Latin America and Africa. The economic crisis may have been debilitating for the rich world but for emerging markets it has been closer to a triumph. Emerging economies now characterize younger population, increasing number of well-qualified population, growing middle class, elevating incomes and urbanizations. Havells is deriving 70% of its consolidated revenue from developing economies like India and Thailand in Asia and Latin America. Leading brand presence and strong distribution channel will lead to the profitable growth in these regions. In addition they would be launching new products, aggressive market strategy and developing local leadership in order to capture robust growth available in these economies. Driving profitability is the key focus area in their operations at developed countries of Europe. Restructuring of European operations by reducing fixed cost along with operational efficiencies, re-strengthening of the brand and improved relationship with customer would contrive improved performance. Local management Havells has an open environment which facilitate in building trust and motivation in the employees. Employees are as enthusiastic about the business as the management. They try to create a culture of participative management and ignite the creative endeavor of employees. It involves making people an interested party to the strategic decisions, thus aligning them to the business objectives. They cultivate entrepreneurship skills at each level. Building long lasting and customer focused strategic partnership is important for Havells as their business depends on the ultimate growth of these channel partners. Human values, culture, ethics and behavior of their employees with these partners are keys to their growth. Havells aims to be close to its customers around the world by providing them local partnership for fast and effective solution of the business needs. As a result of the 100 year presence of

54 SRM School of Management

Organizational study on Havells India Ltd Sylvania and over four decades of Havells we perceived as a local in the countries they operate. Diversity is a key feature of the Company. They promote collective decision making at local level. In order to do so 'Strategic Business Unit' for each business segments has been formed across all geographies. SBU is headed by a key strategic team which takes collective decisions. Thus SBUs act as self contained planning units for developing discrete business strategies, objectives and parameters. Because strategic business units are more agile, they respond quickly to changing economic or market situations at local level. Unique business model Havells business model is unique in India. They focus on the entire customer need of low voltage electrical products by selling through same distribution channel. They have aligned themselves horizontally by having large product basket. Thus their channel management has become important and Havells enjoys paramount relationship with its dealers for the past four decades. The strategic business model that they adopted and implemented has certain features which place their business in a unique positioning in India.

1. Brand building Havells has created a strong brand in the electrical consumer products in India which traditionally was a low involvement product category. They started investing in brand promotional activities through large scale television advertisements in 2006 in addition to other mode of advertisement like seminars, print media and local advertisements. It was unheard at that time about any electrical company co-sponsoring cricket mega events like T-20 world cup, Indian Premier League.

55 SRM School of Management

Organizational study on Havells India Ltd 2. Premium positioning Havells brand is associated with quality at par with the products of the global leaders. As a strategy Havells entered into the premium category in each product while leaving 'bottom of the pyramid' strategy.

3. Common distribution channel Havells selling pattern is quite different from its peers in India. They sell their entire product categories through same distribution channel targeting same consumer. As a result they are more consumer focused-channel friendly company. They enjoy unparalleled space with both the consumer and dealers in our industry.

4. Havells Galaxies Breaking the conventional selling methods, Havells started 'Havells Galaxies' which are one stop shops satisfying directly the entire electrical product need of the consumer. Under franchisee model Havells Galaxies provide additional premium sale channel to its existing channel partners. Growth imperative In financial year 2010-11 Havells extended their competitive advantage, while investing in growth. Havells fortified their leadership and culture. Havells is a marketdriven company forming strategies based on the feedback from markets to capture growth opportunities and to accelerate change while staying fast and productive. Growth is considered as a process to achieve better returns to stakeholders. Growth imperative at Havells means:

1. Lead in growth markets In 2010-11 they grew exponentially in the markets where they lead in the product segments and generated close to Rs. 4,000 cores revenue from Latin America, India and Thailand. With a growth of 22% in financial year 2010-11, they continue to make long term investments to drive growth across these geographies 56 SRM School of Management

Organizational study on Havells India Ltd 2. Launch new products They are committed to grow ahead of the competition. India, which is the key market for their electrical consumer durables segment, new product range of Electrical Water Heater was launched in September 2010. To leverage brand presence and distribution strength in India the next plan is to launch small appliances. Sylvania's strong brand and distribution channel in Europe & Latin America will be further leveraged by launching low voltage switchgears. 3. Entering new countries Sylvania is a 100 years old brand having visibility across five continents. Capitalizing on the brand recall in other geographies than Europe and Latin America, Sylvania will be re-launched in growing economies. 4. Investing in manufacturing capabilities During the last five years Havells invested more than Rs.650 cores in India for converting its manufacturing capabilities into world-class, state-of-the-art units. They own largest facilities in terms of some of our product segments in India and amongst top few in the world. As a manufacturing organization, they manufacture 85% of their products in India and outsource only those products which are either not viable or cannot be done. 5. 'Information Technology - a business enabler' Havells innovative IT tools enabled the channel partners and business managers to work ahead of competition. IT Applications has been deployed in India for basic business functions of sales, purchase, production, planning, accounting, research, development and designing through SAP, to implement best business practices with maximum possible automation thereby increasing employees' efficiency & productivity.

57 SRM School of Management

Organizational study on Havells India Ltd

CHAPTER - 4 FINDINGS, SUGGETIONS & CONCLUSION

58 SRM School of Management

Organizational study on Havells India Ltd FINDINGS The companys sources of funds are only from internal capital. No external funds are Made use of in financial operation.
Highly quality products and services its products ranging from Industrial &Domestic Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water Heater, Havells Modular Switches, Crabtree and Standard Electrical Product.

There is good employee relationship in the company, Human resource covers everything from wellness, safety and benefits of employees to their administration, motivation and communication.

Committed employees The Company has formed strategic alliances and partnerships with many leading players operating in the end-to-end solutions in the power distribution equipment industry. Havells has entered manufacturing alliances with several leading electrical companies such as Electrium, Geyer AG, DZG, etc., which has assisted the company to leverage the technical expertise and developing quality products in the electrical products segment.

Havells has efficiently leveraged alliances to gain an entry into global markets, developing a strong product portfolio to capture them. The company has developed efficient partnerships to increase its market penetration in the EU. Leading the Way through Innovation.

Havells has focused on research and development to produce novel products, at the same time, reducing cost and upgrading the quality of its products. The company has a skilled workforce that works on its R&D projects. It has also entered into alliances with several companies, thereby facilitating sharing of technology. It has developed a good brand name by introducing innovative products in the market, which has enabled it to penetrate the market.

Good working environment they are provided with all kinds of new office requirements to make work more employee friendly. As the company is following Maslows need hierarchical theory the company is able to satisfy their employees needs. No political interference in the functioning of the organization and good reputation. 59 SRM School of Management

Organizational study on Havells India Ltd SUGGESTIONS The company has to aggressively recruit younger dynamic workforce to increase the quality and visibility of the organization. Increase geographical reach with more branches so that they can satisfy the demand for their products in unreached markets. Enhance promotional activities and increase ads to make their domestic appliances more popular among the customers. Conduct seminars and other programs within the organization. Training program must be conducted for newly appointed employees. Utilize modern technologies of organizational activities.

60 SRM School of Management

Organizational study on Havells India Ltd CONCLUSION

Right decision at right time itself helps an organization not only to run smoothly but also effectively. But for making right decision it is very essential to understand certain aspects relating to the problem. The aim of this study was to develop the understanding of the growth and standing of the firm. It helped to understand functioning of the various departments and was able to get a good idea about the organization structure. The study helped to understand the policies and strategies they followed and was able to know the strength and weakness of the company Havells India Ltd. is the pioneers and the most reputed and trusted name in electrical distribution products. The organization study at Havells India Ltd had helped to know the various aspects in the organisation. The study helped to get practical knowledge on various aspects of current industrial scenario. The study helped to know the practical knowledge in the corporate. This study was very valuable and informative for me as a management student. In all sense the study in this organization was interesting and educative. This study was valuable and informative for me as a major student.

61 SRM School of Management

Organizational study on Havells India Ltd

APPENDIX

62 SRM School of Management

Organizational study on Havells India Ltd

BIBLIOGRAPHY

Books Company profile and company magazines of havells

Website www.Havells.com www.QRG Group.com www.allelectricalproducts.com/indian -electrical-industry.html

63 SRM School of Management