Havells India Limited is a $1.

3 Billion leading Fast Moving Electrical Goods (FMEG) Company

with a strong global footprint. Havells enjoys enviable market dominance across a wide spectrum
of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires,
Motors, Pumps, Fans, Modular Switches, Home Appliances, Electric Water Heaters, Power
Capacitors, CFL Lamps, Luminaires for Domestic, Commercial and industrial Applications.

Havells in 2007 created history by acquiring worlds renowned lighting company Sylvania thus
registering itself amongst top 4 lighting companies in the world. Today, Havells owns some of
the most prestigious global brands like Havells, Crabtree, Sylvania, Concord, Luminance and
Standard. Its global network constitutes of 6500 professionals across 91 branches &
representative offices in over 50 countries. Its 11 state-of-the-art manufacturing plants in India
located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar, Neemrana and 7 world class
manufacturing plants located in Europe, Latin America, Africa & China are manufacturing
globally acclaimed products, synonymous with excellence and precision in the electrical
industry.

A 20000 strong global distribution network continuously strives to set new benchmarks in
prompt delivery and service to customers powering their smiles like none other electrical brand
in the country. Further to this the company pioneered the concept of exclusive brand showroom
in the electrical industry with Havells Galaxy. Today over 210 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.

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. Havells products
& processes have acquired a number of International quality certifications, like BASEC, CSA,
KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE
(Turkey), SNI (Indonesia) and EDD (Bahrain) thus complying with stringent quality norms at
even the most testing markets, worldwide. It is committed to keep powering the world with its
state-of-the-art innovations and energy-efficient solutions. Currently 70% of its product offering
is energy efficient.

Social and environmental responsibility has been at the forefront of Havells operating philosophy
and as a result the company consistently contributes to socially responsible activities. For
instance, the company is providing mid-day meal in government schools in Alwar district,
covering 35000 students per day. Besides this company has acquired land for constructing a
larger kitchen with all the modern facilities to serve freshly cooked food to 35000 students in the
area. The group company, QRG Healthcare runs a 140 bed hospital in Faridabad and will soon
launch another 450 bed hospital in Faridabad by end of the year. In the past, the company has
generously contributed to the society during various national calamities like the Bihar Flood,
Tsunami and Kargil National Relief Fund etc.

The essence of Havells success lies in the expertise of its fine team of professionals, strong
relationships with associates and the ability to adapt quickly and efficiently, coupled with the
vision to always think ahead.

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


VISION MISSION AND VALUES
Vision
"To be a globally recognized corporation that provides best electrical & lighting solutions,
delivered by best-in-class people."
Mission
To achieve our vision through fairness, business ethics, global reach, technological expertise,
building long term relationships with all our associates, customers, partners, and employees
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.



Research and Development




Innovation is the hallmark of every vital development at QRG Group. New ideas, inventions
deepen scientific knowledge and give its work force a new impetus towards technical progress.
QRGs technological strengths and its endeavor towards continuous research & development
have allowed it to fulfill its responsibilities towards its customers. 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. Havells has recently invested 50 crores in the
QRG Center for Research and Innovation, set-up at the company's Head Office premises in
Noida, U.P.
The objective of this centre is to provide the theoretical & experimental foundations for all
segments of electrical engineering. The centre closely cooperates with the various departments
so as to provide the best and the latest in terms of technology and design.
Quality Control
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, every time. Building customer confidence through teamwork is a top priority to
provide a wide variety of products and services.
Realising 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.

Brighter than before
Upgrade to OUTPERFORM: We upgrade our rating on Havells to an
OUTPERFORM (from Neutral) with a revised target price of Rs455 (up from
Rs431), led by our view of continued recovery in Sylvanias financial
performance (raise EPS by 12-17% for FY11-13) and potential deleveraging,
which reduces risk.
Strong consumption trends to drive performance: Havells continues to
benefit from strong consumption trends in India and increased preference for
branded products. We expect domestic revenue for Havells to grow faster
than end-market growth, led by market share gains in the lighting and
consumer business, introduction of new consumer products and recovery in
sales for industrial products. Furthermore, a better-than-expected
performance at Sylvania supports earnings growth. For Sylvania, we
estimate EBITDA margin at 5.5%/7.5% for FY11/12, above our prior
estimates of 4.5%/5.1% on better-than-expected benefits from restructuring
and increasing gearing towards emerging markets.
Deleveraging reduces risk rating: While we are not as optimistic as
management on Sylvanias near-term fortunes, we share management
optimism on longer-term growth for Sylvania, led by expansion into emerging
markets (higher growth, higher margins). We, however, believe the key
benefit that Havells derives from a recovery in Sylvania, is its ability to
deleverage (D/E: 2.3:1) through equity fund raising, with limited dilution.
Earnings upgrades key driver: We believe strong execution from Havells
in the domestic market as well as Sylvania could trigger consensus
upgrades, driving stock price performance. Its underperformance over the
past three months also provides an attractive entry point, in our view. Our
target price is based on 12x EV/EBITDA (domestic business) and 7x for
Sylvania. Key risk to our view is a substantial slowdown in Europe.

Share price performance
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Price (LHS) Rebased Rel (RHS)
The price relative chart measures performance against the
BOMBAY SE 30 SHARE SENSITIVE index which closed at
19405.1 on 29/11/10
On 29/11/10 the spot exchange rate was Rs45.82/US$1

Performance Over 1M 3M 12M
Absolute (%) -10.0 -7.2 115.3
Relative (%) -7.1 -13.9 84.6
Financial and valuation metrics
Year 3/10A 3/11E 3/12E 3/13E