Havells India LTD - 09042013

April 9, 2014
Havells India Ltd.

brand building through acquisitions
CMP ` 893
Target: ` 1092
Key Share Data

Face Value (`)
Equity Capital (` mn)
M.Cap (` mn)
52wk High/Low (`)
Avg. Daily Vol
BSE Code
NSE Code
Reuters Code
Bloomberg Code
5.0
623.9
110928.4
943/586
54589
517354
HAVELLS
HVEL.NS
HAVL IN
Shareholding Pattern (as on Mar 31, 2014)

0%
7%
Promoters
31%
FII
DII
62%
Public & Others
Source: BSE
Consolidated Financials
(` mn)
Particulars
FY13
FY14E
FY15E
FY16E
Net Sales
72478.9 80886.5 87320.5 94527.2
Sales Gr.
11.2%
11.6%
8.0%
8.3%
EBIDTA
6688.9
8023.8 8790.1 9733.0
PAT
5814.3
4798.8 5305.3 6035.7
PAT Gr.
57.2%
17.5%
10.6%
13.8%
EPS (`)
46.6
38.5
42.5
48.4
CEPS (`)
55.4
48.2
54.0
59.1
Key Ratios
Particulars
Int Cover (x)
P/E (x)
P/BV (x)
P/Cash EPS (x)
M.Cap/Sales (x)
EV/EBIDTA (x)
ROCE (%)
ROE (%)
EBIDTM (%)
NPM (%)
DebtEquity (x)
FY13 FY14E
4.5
9.6
19.1
23.1
7.7
6.1
16.1
18.4
1.5
1.4
17.1
14.4
24.6% 24.7%
40.3% 26.5%
9.2%
9.9%
8.0%
5.9%
0.6
0.5
FY15E
13.6
20.9
5.0
16.5
1.3
12.8
24.9%
23.7%
10.1%
6.1%
0.3
FY16E
21.8
18.4
4.1
15.0
1.2
11.0
27.7%
22.1%
10.3%
6.4%
0.1
Price Performance Havells vs S&P BSE 200

60%
Havells
50%
S&P BSE 200
40%
30%
20%
Initiating Coverage BUY
Company Profile
Havells India Ltd (Havells) is largely a consumer focused electrical goods company,
with an extensive portfolio of quality and premium products. Havells businesses can
be divided in to four broad categories namely switchgears, cables, lighting & fixtures
and electrical consumer durables. The company has emerged as one of the top four
Indian brands in Indian electrical industry with 20,000 distribution networks across
the globe. Largely, Havells uses B2C model to push its products through its
distribution network.
Investment Rationale
Topline to grow with the moderate CAGR of 12% during the next three years:
Havells consolidated revenue has grown with a CAGR of 11% between FY1013
with switchgears, cables, lighting & fixtures, and electrical consumer durables
contributed 15%, 23%, 51% and 11% respectively.
Consolidated topline posted by the company for FY13 was ` 72.5 bn, which we
expect to touch ` 94.5 bn by the end of FY16E with the CAGR growth rate of
12%.
We expect switchgears business to grow with a CAGR of 15% and cables
business to grow with a CAGR of 11% during FY1316E with the demand is
expected to pick post general elections.
Consolidated lighting & fixtures segment has seen a CAGR of 6% between FY10
13. The segment has grown by 8% during 9MFY14 to ` 5.2 bn. We expect the
business to maintain the CAGR of 7% in the coming three years on the back
pick up of the construction activities post general elections.
Net revenue from Sylvania was more or less stable at Euro 325.1 mn during
9MFY14 and we expect it to grow with a CAGR of 1.5% between FY1316E with
the indication of Europe coming out of recession.
With consumer centric product portfolio, electric consumer durables business
has grown by 38% in FY13. We expect the segment to grow with the CAGR of
10% during FY1316E.
Expansion in Margins:
Standalone EBIDTA margins of the company expanded of 120 bps yoy to
13.9% during 9MFY14 on the back of better operating cost management, good
quality premium products and high brand recall among the consumers.
The better operating cost management has led to improvement in the
standalone margins of switchgears and electrical consumer durable segment
110 bps and 230 bps respectively, yoy during 9MFY14.
We expect standalone EBIDTA margins of Havells to cross 14% by FY16E, with
further improvement in the margins of consumer durables.
Margins from Sylvania have started showing the signs of improvement and
stability, with it enjoying the EBIDTA margin of 5.3% in FY13 and 4.5% in
9mFY14. With the signs of Europe coming out of recession, we expect Sylvania
to maintain its margin at about 5% in the next 23 years.
Sylvania is scheduled to repay its term loans going forward further improving its
debtequity to 0.1 x from present 0.6 x. D/E of Havells reached as high as 2.6x
after acquiring Sylvania.
10%
0%
10%
Analyst: Vineet P. Agrawal

Tel No: +91 22 4922 6006; Mobile: +91 98195 10575
email: vineet.agrawal@skpmoneywise.com
SKP Securities Ltd
Outlook & Recommendation

Since, Havells is the case of strong brand recall, we have valued the stock on the
basis of EV to sales of 1.4x of FY16E revenues method of relative valuation.
We recommend BUY rating on the stock with a target price of ` 1092/ (23%
upside) in 18 months.
www.skpmoneywise.com
Page 1 of 20
Havells India Ltd.
Business Classification
Havells India Ltd (Havells) started its journey in 1958 as an electrical goods trading company
in Delhi, promoted by Mr Qimat Rai Gupta. The Company got its name with the acquisition
of Havells brand in 1971, at about ` 700,000.
Today, Havells has become a USD 1.3 bn organization having presence in electrical and
power distribution equipments with products ranging from industrial and domestic circuit
protection switchgears, cables, lighting and fixtures and small fast moving electrical goods.
The Company has emerged as one of the top four Indian brands in Indian Electrical Industry
with 91 offices and 20,000 distribution network across the globe. Havells largely uses B2C
model to push its products through its distributor network.
Havells 20 stateoftheart manufacturing facilities are situated across the globe including
India. The Company has 14 plants in Haridwar, Uttrakhand; Noida, Uttar Pradesh; Baddi,
Himachal Pradesh; Alwar, Rajasthan; Sahibabad, Uttar Pradesh; and Neemrana, Rajasthan in
India and other 6 are located across Europe, Latin America, and Africa.
Havells made one of its most remarkable acquisitions, by acquiring Germany based lighting
and fixtures maker Sylvania, from investment banking firm called N M Rothschild, for Euro
227.5 mn. Sylvania is among the top four lighting companies in the European market and
Latin America.
Business classification of Havells is as follows:
Switchgears
Cables
Lighting & Fixtures
Elect Consumer Durables
(Revenue Contribution: 15%)
Industrial & Domestic

Switchgears
Industrial Underground
Cables
Lightings
Regular & Premium Fans
(CFL & LED)
(Switches, MCBs, capacitors,

industrial motors)
(Electric substation to houses,

small factories)
(Ceiling Fans, Pedestal Fans,

Table Fans, Wall Mounted Fans,
Air Circulator fans etc)
Domestic Cables for

buildings
(Commercial & Housing wires)
Fixtures
(Consumer lighting, LED lighting,
Industrial lighting, road lighting,
speciality lamps, home dcor
lightings, commercial lightings,
Area lighting etc.)
Appliances
(Electric irons, kettles, tea/coffee
makers, popup toasters,
sandwich maker, OTG, Induction
cookers, geysers & heaters etc.
Domestic MCB
Market Size: ` 17,000 mn
Market Share: 29%
Mkt Position: Market Leader
Peers: Legrand, Schneider
Domestic Cable
Market Share: 14%
rd
Mkt Position: 3 Largest Player
Peers: Polycab, Finolex
Lighting CFL
Market Share: 12%
Mkt Position: 2nd Largest Player
Peers: Philips, Osram, Bajaj Elec.
Regular & Premium Fans

Market Share: 15%
Target: 2530% in next 3 years
Peers: Crompton, Bajaj Elec
Modular Switches
Market Share: 16%
nd
Peers: Panasonic, Legrand,
Schneider
Industrial Cable
Market Share: 9%
rd
Peers: Polycab, KEI Industries
Fixtures
Market Share: 13%
Mkt Position: 2nd Largest Player
Peers: Philips, Bajaj Elec,
Crompton
Appliances
Market Share: New Entrant
Peers: Bajaj Elec, Philips
Source: Company & SKP Research; Revenue Contribution are based on consolidated figures of FY13
SKP Securities Ltd.
Page 2 of 20
Havells India Ltd.

1.
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Switchgears Business:
The Company manufactures products such as modular & nonmodular switches, domestic and
low voltage industrial switchgears, motors and capacitors.
Switches and switchgears: Havells offers switchgears under three brands namely Crabtree,
REO and Standard. Under Crabtree brand, Havells offers highend premium modular switches.
Crabtree: Havells offers this brand mainly to hospitality sector, offices, retail outlets, shopping
malls, multiplexes, museums and galleries. The brand targets Metropolitan Cities.
Recently, the company has extended the brand by launching Crabtree XPRO which offers
premium range of switchgears under its brand Crabtree. The products include MCBs, RCCBs,
DBs, isolators and time switches.
Crabtree is a known global brand of electrical accessories. Crabtree India was formed as 50:50
joint venture between Crabtree, UK and Havells India in 1996, dealing in modular switches and
premium bathroom fittings. Havells acquired the brand rights of Crabtree for the Asian market,
from Crabtree UK, the parent company, in 2006.
REO: Havells launched REO switches in 2013. REO is a premium range nonmodular
conventional switches (including sockets and fan regulators) brand targeting towns with the
population of 50,000100,000 (Tier II & Tier III cities) people. Havells have also made inroads
in rural market with the launch of REO switches.
The total market for conventional switches is estimated to be around ` 20 bn in India, growing
15% yearonyear.
REO switches are manufactured in Havells Baddi plant which can manufacture up to 500,000
REO switches.
Standard: Havells acquired Standard Electricals, in 2000, for about ` 1.2 bn. The brand caters
to South Indian market with strong brand recall.
Infrastructure: Havells has stateoftheart switchgear manufacturing facilities at Baddi,

Himachal Pradesh and Sahibabad, Uttar Pradesh.
The Company manufactures domestic switchgears, with the annual capacity of about 50 mn
switchgears and 70 mn switches, such as distribution boards, Residual Current Circuit Breaker
(RCCB), Miniature Circuit Breaker (MCB), Isolators, changeover switch and premium Crabtree
and Havells modular and nonmodular switches in Baddi.
Low voltage industrial switchgears namely MCCBs, control gears, power distribution board
(DBs), changeover switches, automatic transfer switch and air circuit breakers (ACBs) etc are
manufactured at Sahibabad.
Time switches guarantee the opening & closing of electrical circuits according to the scheduled
programme. The product finds application in programmed switching of
9 lights of car parking, advertising sign boards;
9 heating equipments at houses and work place; and
9 motors for pumps and fans.
MCB is an automatically operated electrical switch designed to protect an electrical

circuit from damage caused by overload or short circuit. Its basic function is to detect a fault
Page 3 of 20
Havells India Ltd.

condition and interrupt current flow. Unlike a fuse, which operates once and then must be
replaced, a circuit breaker can be reset (either manually or automatically) to resume normal
operation.
SKP Securities Ltd
RCCB is an electrical wiring device that disconnects a circuit whenever it detects that
the electric current is not balanced between the energized conductor and the
return neutral conductor.
Changeover switches finds wide application in industries as well as domestic sphere for use in
low voltage distribution circuits, wherever continuity of power supply is necessary, for
switching to an alternate source of supply (such as generator or inverter) from the main supply
and viceversa.
Industry: The switchgear and control gear industry in India is estimated at ` 135 bn in FY13.
The industry is growing with a CAGR of 15% for the last three years. It is expected, that the
industry will cross ` 200 bn mark, by 2017.
Industry can be broadly divided in to low voltage switchgears and high voltage switchgears.
More than 55% of the low voltage switchgear industry is dominated by unorganized players
which are expected to increase in the coming years. The unorganized segment includes
regional players and low quality imports.
Motors: Havells manufactures three types of motors viz. special motors, standard motors and
smoke extraction motors at its Neemrana facility, ranging from 0.12 HP to 470 HP.
Havells manufactures motors with technical collaboration with Lafert, which is one of the
largest manufacturers of motors in Europe.
Special Motors: Havells manufacture inverter duty motors and crane duty motors which are
specially designed for operations requiring wide speed variation through variable speed drives.
Standard Motors: Standard motors find applications in pumps, conveyors, fans, compressors,
cranes, blowers, hoists and vibrators.
Smoke Extraction Motors: As the name suggests smoke extraction motors of Havells finds
applications in automatic smoke and heat extraction units. These motors are mainly designed
for driving smoke extraction fans. These are mainly used in buildings or structures in which
smoke control is necessary, due to their shape and arrangement.
Capacitors: Havells set up a manufacturing facility for capacitors with the capacity of 600,000
KVAr per month, in 2007, at Sahibabad UP.
Capacitor is a device used to store an electric charge, consisting of one or more pairs of
conductors separated by an insulator. Capacitors are often used when relatively small amounts
of energy are needed.
Havells capacitors find applications

9 where normal duty capacitors are not adequate such as rectifiers, welders,
induction furnaces, rolling mills etc (Heavy duty extended life capacitor);
9 in large industrial plants with non linear loads (Super heavy duty long life
capacitor); and
9 in farming for pumping water (Agricultural capacitor).
Page 4 of 20
Havells India Ltd.
2.
Havells sell these products through its dealer distribution network. Currently the Company has
the dealer network of 20,000 distribution network.
Cables Business:
Havells is the second largest manufacturer of cables in India. It manufactures domestic and
industrial cables at its stateoftheart manufacturing plant at Alwar, Rajasthan. It is the largest
integrated cable plant in India.
Types of cables manufactured by the Company and its applications are given below:
Type
Industrial Underground Cables
Domestic Cables for Buildings
Applications
Electrical substations to houses, small factories
Internal wiring for commercial and industrial buildings
Source: Company & SKP Research Desk
3.
Havells manufactures HT & LT flame retardant cables. It is one of few companies who does PVC
compounding inhouse. This improves flame retardant quality of the cables.
This segment is the second largest contributor to the consolidated revenues of Havells, with
23% contribution, after Lighting & Fixture business.
Havells is the third largest player in India with the market share of 14% & 9% in domestic and
industrial cables segment, respectively, after Polycab and Finolex Cables.
Lighting and Fixtures Business:

The lighting and fixtures business of Havells can be divided into manufacturing of light sources
and fixtures. Havells manufactures wide range of light sources such as compact fluorescent
lamps (CFL) and LED Lamps.
Havells forayed into the business in 2003. Following are the subsegments and categories in
which Havells have dominant presence:
SubSegments
Categories
Lighting Source
CFL
LED
Applications
Retrofit, Non retrofit, Decorative lamps ranging from 5W to
85W
LED Lamps in various shapes and wattages
Lighting Fixtures
Consumer Lighting, LED Lighting, Industrial Lighting, Road

Lighting, Speciality Lamps, HID Lamps, Home Dcor Lighting,
Commercial Lighting, Landscapebunker lighting, Area
Lighting
Specialty & HID Lamps
Finds applications in Bill boards, showrooms, marriage halls,

small area lightings
Fixtures
SKP Securities Ltd
Infrastructure: The Company has its manufacturing facility at Neemrana, Rajasthan for the
manufacturing of its lighting sources and fixtures, spread at 40 acres of land. The total capacity
of the plant is 4 mn pieces per month.
The plant has the installed capacity of 500,000 CFLs per annum. The plant has been setup with
the focus on international market. 20% of the products manufactured here are exported to
Page 5 of 20
Havells India Ltd.

American and European markets, through the network of Sylvania with the balance catering to
the domestic market.
Revenues from the segment are derived from two sources viz. Havells standalone entity and
Havells Sylvania (Sylvania). Revenues from the segment have grown with a CAGR of 21%
between FY1013 and are the highest contributor to the consolidated revenues of the
company.
Havells Sylvania:
SLI Sylvania, one of the dominant players of global lamp market was acquired by Havells, in
2007, from investment banking firm called N M Rothschild, for Euro 227.5 mn and was
renamed as Havells Sylvania, with the right to offer its products in Europe, Latin & South
America, and Asia. Sylvania was almost 1.5 times that of Havells in size at the time of the
acquisition.
SKP Securities Ltd
Lighting Sources: Sylvania manufactures energy efficient light sources such as CFL lamps, LED
lamps, HID lamps, halogen lamps and various special products tailor made for the
professionals. Sylvania outsources 50% of lamps especially from China and rest is manufactured
inhouse.
Fixture Brands: It also manufactures luminaries under strong lighting brands viz. Concord,
Luminance and Sylvania, having dominance in Europe, Latin America and other geographies.
Concord is renowned for its design, high technical performance and aesthetic looks. The brand
offers its products mainly to highend corporate endusers and professionals, such as
architects, interior designers and lighting designers/engineers.
Brand Sylvania offers competitively priced luminaries for industrial and commercial
applications, such as offices, education, residential, leisure and industrial plant lighting where
as Lumiance offers a wide range of luminaries, intended for lighting mediumtolarge projects,
such as retail & display, offices, hotels, and restaurants.
Worlds fourth largest lighting and fixture company: Brand Sylvania has enabled Havells to
have a global presence, exposure and opportunity. Sylvania is the fourth largest lighting and
fixture company in the world after, Philips, Osram and GE.
Concord and Lumiance are lighting some of the most prestigious installations in the world like
Madame Tussauds Wax Museum, London; National Museum, Delhi; French Tunnel; House of
Guru Rabindranath Tagore, Kolkata; Renault showrooms worldwide and many others.
Inhouse Manufacturing of Fixtures: These Fixtures are tailormade by Sylvania as per the
tastes and preferences of the consumers in different countries.
Infrastructure: Sylvania has its stateoftheart manufacturing facilities in Europe (Germany,

Belgium, Tunisia, UK and France) and Latin America (Columbia and Costa Rica). Sylvania has 94
branches and representative office worldwide, in more than 50 countries.
Page 6 of 20
Havells India Ltd.
5.3%
6.2%
6.7%
36.0%
70%
5.3%
35.4%
80%
3.3%
33.3%
90%
4.6%
32.3%
100%
25.6%
Region wise Revenue Contribution: Majority of the revenues of Sylvania is contributed from
European region, followed by Latin & South America and Asia. Region wise revenue
contribution at a glance:
26.2%
60%
Others
58.4%
57.3%
FY10
61.4%
FY09
Americas
62.4%
30%
71.1%
40%
69.3%
50%
FY11
FY12
FY13
9MFY14
20%
Europe
10%
0%
4.
Consumer Durable Business: Consumer durable business of Havells can be broadly divided in to Fans
and domestic appliances.
Fans:
Havells entered in fans business in the mid of 2003. Today it has emerged as one of the fastest
growing fans brands in the Indian market. It offers a complete range of fans including ceiling
fans, portable fans (pedestal fans, table fans, wall fans, ceiling mounting fans), and domestic &
industrial exhaust fans to meet the requirements of varied individual in domestic market.
SKP Securities Ltd
Presence in regular and premium fan segments: Havells has presence in regular and premium
fan segments available in various shapes, sizes, colors and is uniquely designed keeping in
mind the requirements of todays luxurious lifestyle. Havells sells fans in premium segment
with a price ranging from ` 2,000 a unit to as high as ` 30,000 a unit.
Infrastructure: Havells manufacturing facility is situated at Haridwar, Uttarakhand. The plant is

equipped with stateoftheart technology including automated CNC machines for motor
winding and end covers machining, advanced conveyorised assembly lines complete with
computerized testing facilities.
Industry: The Overall Fan industry is pegged at ` 50 bn wherein the regular and premium fan
segments, which put together has a market size of around ` 32 bn. The economy fans
segment, which is cheaper than regular and premium fans, has the market size of around ` 18
bn.
Revenue Contribution: Fan business contributes about 80% of the total consumer durable
business revenues. Havells enjoys about 15% market share in the segment. We expect it to
increase to 2530% in the next three years. Havells is third largest player in India after
Crompton Greaves and Usha.
Page 7 of 20
Havells India Ltd.

Domestic Appliances:
Havells has diversified into domestic appliances segment in 2012. Products offered by Havells
includes the following:
Category
Garment Care
Brewing
Products
Electric Iron (both steam and nonsteam)
Coffee Maker
Popup toaster, sandwich maker, OTG, Insta Cook Induction
Cooker,Max Cook Rice Cooker, Air Fryer
Juicer, mixer grinder, blender, chopper, juicer mixer grinder
Room Heater and Oil Filled Radiator
Electric storage water heater and instant water heater
Cooking
Food Preparation
Home Comfort
Water heaters
Source: Company & SKP Research Desk; Entered electric water heater business in 2010
Product Sourcing: Presently, the company outsources all its domestic appliances from local
vendors in India and China.
Havells is targeting premium appliance market like its other product segments.
Industry: Domestic appliance market is pegged at around ` 50 bn with premium segment

contributing around ` 10 bn, dominated by players like Bajaj Electricals and Philips. There are
also local brands which have powerful equity in certain productlines.
Track record of Successful Acquisitions

Havells had a track record of five successful acquisitions since 1972. Acquisitions made by the Company at a glance:
Year
1971
1983
1997
2000
2007
Entity
Towers & Transformers Ltd

Electric Controls & Switchboards
Duke Arnics Electronics (P) Ltd
Standard Electricals Ltd
Lighting business of SLI Sylvania
Brand
Havells
Standard
Concord
Lumiance
Sylvania
Product
Electrical Goods Trading
Energy meters
Provides customised solutions
Electronic Meters
Switchgears, electric cables, CFLs
Acquisition Value
` 700,000
` 1.2 bn
Lighting & Luminaries
Euro 227.5 mn
Source: Company & SKP Research Desk; Havells exited from premium bath fittings and energy meter segments
SKP Securities Ltd
Page 8 of 20
Havells India Ltd.
Havells Galaxy Leveraging Distribution Channel
Havells is a distribution led business with strong distribution network, across India.
Havells came up with the unique concept of Havells Galaxy, with a view to enhance its brand
identity. Havells Galaxy is the onestopshop for the entire range of Havells products to meet
the various electrical goods needs of the end customer.
Havells Galaxy showcases entire range of Havells products from switchgears to ceiling fans,
switches, cables and lighting products.
These stores are run by the dealers of Havells as franchisees, enabling them to offer better
shopping experience to consumers with the ambiance and convenience of modern retail.
There are 200 Havells Galaxy stores across the country by the end of FY13 which contributed
about 14% of the noncables business of the Company.
Havells is expanding its Havells Galaxy network and plans to double it to 400 stores across
India.
Raw Materials
SKP Securities Ltd
The key raw materials for the products manufactured by Havells are ferrous and nonferrous
metals. Metals which contains appreciable amount of Iron or its alloys such as steel, is called
ferrous metal and vice versa. Aluminium and copper are nonferrous metals used in the
products by Havells.
Metals used in appliances, fans, lighting and cables and wires are aluminium and copper.
Plastic is also used for making these products as well as switchgears whereas coldrolled steel
is used for manufacturing water heaters and geysers. Havells procure steel domestically.
The above metals are highly price sensitive. Havells do not have the hedging policy in place.
The company keeps checks on its inventory levels by not keeping raw material for more than
10 days. Havells successfully passes on any price rice in its raw materials to its customers,
without any lag effect.
Paint, multi metal chemicals and PVC are other raw materials of the company. Havells does the
compounding of PVC inhouse which is used for insulating wires and cables.
Page 9 of 20
Havells India Ltd.
Investment Rationale
1.
Sylvania, no more a drag on Havells Improving Financials display of strong management

character:
When Sylvania was a drag:
As mentioned earlier, SLI Sylvania, one of the dominant players of global lamp market was
acquired by Havells, in 2007, for Euro 227.5 mn.
After the acquisition, Sylvania went through a financial and operational restructuring by its
new owner, as it had turned lossmaking post the 2008 economic crisis in India. As the
meltdown rocked European markets, Sylvania's sales fell from Euro 515 mn in FY08 to Euro
430 mn in FY10. EBIDTA fall from positive Euro 27.9 mn to a loss of Euro 2.8 in FY10.
In such a scenario, in September 2008, Sylvania's bankers, led by Barclays Capital, hit the
panic button as the company breached its covenants. Covenants are a set of financial ratios
that the borrower must maintain, put in place by lenders.
Sylvania's acquisition was funded by debt a Euro 120 mn loan based on operating cash
flows and a Euro 80 mn loan taken out by a Havells subsidiary. (Havells repaid Euro 80 mn by
raising money from the sale of a stake to Warburg Pincus). The bankers asked Havells to
repay the loan or hand over Sylvania to them.
From here onwards Havells took on the reins of Sylvania and undertook the restructuring of
the Company to cut down the losses. It shut down the factories in Europe (UK) and Americas
(Brazil, Costa Rica); it reduced strength of certain facilities, brought few of the products on
India & China to leverage on cost benefits, cutting inventory levels, etc.
Sylvania turned profitable at the net level since FY11 (5.9% at EBIDTA Level) and has
reported higher EBIDTA margin every year since FY10 (loss of 0.7%).
Sylvania no more a drag

Sylvania clocked revenue of around ` 30,229 mn (Euro 439.9 mn), 42 per cent of Havells'
global revenues, in FY13 and ended up EBIDTA Margins of 5.3% and 4.9% during FY13 and
9MFY14.
After nearly five years of nearzero growth, Europe is showing the signs of revival, with all
major countries expected to report positive economic growth this year. Havells is best
placed to take advantage of the European growth story through its subsidiary, Havells
Sylvania. We expect Sylvanias topline to grow with a CAGR of 1% during FY14FY16E and
EBIDTA margin to remain stable at about 5%.
Sylvania, before and after restructuring, at a glance:
540.0
4.5%
520.0
500.0
0.3%
2.1%
480.0
Growth (%)
5%
1.5%
1.5%
1.9% 1.5%
0%
5%
504.3
446.6
440.0
433.5
439.9
430.1
400.0
448.2
10%
14.7%
420.0
449.4
440.0
10%
8.3%
40
9.0%
35
30
5.9%
5.4%
5.3%
25
515.3
460.0
Revenues (mn Euro)
380.0
FY09
FY10
FY11
FY12
FY13 FY14E FY15E FY16E
8.0%
EBIDTAM (%)
7.0%
4.7%
4.9%
4.9%
15%
4.0%
2.3%
15
3.0%
2.0%
1.0%
5
28
12
0.7%
27
37
23
FY09
3
FY10
FY11
FY12
FY13
0
5
6.0%
5.0%
20
10
20%
FY08
EBIDTA (mn Euro)
FY08
20
22
22
0.0%
1.0%
FY14E FY15E FY16E
2.0%
Source: Company & SKP Research
SKP Securities Ltd
Page 10 of 20
Havells India Ltd.
Improving Debt Equity: Havells was virtually a debt free company before the acquisition of
Sylvania, with D/E ratio of about 0.2x, which crossed 2.6x after acquisition, in FY10.
With the cost cutting drives undertaken by the management Sylvania started generating
cash and margins. Thus, the company started paying its debts bringing it down to 0.6x in
FY13.
As there is no capex plan to be implemented (as of now) with the further repayment of
debts scheduled and stabilization in margins we further expect D/E to improve to about
0.1x by FY16E.
Consolidated Debt Equity of Havells at a glance:

Before
Sylvania
Before
Restructuring
30000.0
After
Restructuring
3.0
2.7
2.5
25000.0
1.9
20000.0
2.0
2.0
1.5
1.5
15000.0
10000.0
5000.0
0.9
0.6
0.6
1.0
0.5
0.3
0.2
0.1
0.5
0.0
0.0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14EFY15EFY16E
Debt (Rs mn)
Equity (Rs mn)
D/E (x)
Topline to grow with the moderate CAGR of 12% during the next three years: Havells topline has
seen CAGR growth of 11% between FY1013 with switchgears, cables, lighting & fixtures and electrical
consumer durables contributed about 15%, 23%, 51% and 11% respectively, during FY13.
Consolidated topline posted by the company for FY13 was ` 72.5 bn, which we expect to touch `
94.5 bn by the end of FY16 with the CAGR growth rate of 12%.
SKP Securities Ltd
16253.4
14133.4
12289.9
10780.6
18000.0
25%
Switchgear segment grew
by 20% to ` 10.8 bn in
20%
16000.0
20%
FY13 from ` 9 bn in FY12.
14000.0
The segment grew by 17%
15%
15%
12000.0
14%
15%
during 9MFY14 to ` 9 bn
10000.0
11%
from ` 7.7 bn in 9MFY13.
8000.0
10%
The growth was lead by
6000.0
spurt
in
domestic
4000.0
5%
switchgears
demand.
2000.0
5%
Sluggish demand from
0%
0.0
industrial switchgears was
FY11
FY12
FY13
FY14E
FY15E
FY16E
compensated
by
the
Revenues from Switchgear (Rs mn)
Growth (%)
demand
in
domestic
switchgears. The Company
has widened its product range in MCB used in households. Havells enjoys close to 29% market
8552.6
8961.5
2.
Page 11 of 20
Havells India Ltd.

share in this product. We further expect the segment to grow with a CAGR of 15% during
FY13FY16E.
Recently launched REO switches contributed ` 540 mn to the switchgear revenue during
9MFY14. We expect it to touch ` 800 mn by the end of FY14.
Cables segment of the

company grew by 6% during
FY13 to ` 16.9 bn from `
15.9 bn in FY12. The
segment posted revenues of
` 13.7 bn during 9MFY14 as
against ` 12.3 bn in
corresponding period last
year. The growth is the
result of the low base last
year due to negative
consumer sentiments.
27%
30%
13619.6
25000.0
20000.0
25%
20%
17%
15000.0
12%
9%
10%
6%
16924.8
18448.0
20661.8
23141.2
5000.0
15929.9
10000.0
15%
FY12
FY13
FY14E
FY15E
FY16E
5%
0%
5%
0.0
FY113%
Revenues from Cables (Rs mn)
Growth (%)
Cables contributed about 40% to the standalone revenues of Havells.
We expect the segment to grow with a CAGR of 11% during FY1316E with the demand is
stabilizing now and further expected to pick, post general elections. The Company has 14%
and 9% market share in domestic and industrial cables segment which we expect to be
maintained.
Lighting & Fixtures segment has seen a CAGR of 6% between FY1013 at consolidated levels.
The segment has grown by 8% during 9MFY14 to ` 5.2 bn. The low growth rate is the result of
sluggish construction activities in India. We expect the business to maintain the CAGR of 7% in
the coming three years on the back pick up of the construction activities post general
elections.
Net consolidated revenue from Sylvania was more or less stable at Euro 325.1 mn during
9MFY14 and we expect it to grow with a CAGR of 1% between FY1316E with the indication
of Europe coming out of recession. About 57% of Sylvanias revenue comes from Europe and
rest from Americas (36%) and Asia & other region (7%), during 9MFY14.
CFL contributes 35% to the lighting revenues whereas LED 15% (FY13) and 25% (FY14). We
expect LEDs to cross 50% mark by the end of FY16. Havells is the second largest player with
12% market share in CFL.
455.0
10000.0
5.0%
4.0%
450.0
25%
25%
8000.0
20%
19%
3.0%
445.0
1.5%
20%
6651.8
7183.9
8046.0
9011.5
FY12
FY13
FY14E
FY15E
FY16E
0%
0.0
Revenues from Lighting & Fixtures (Standalone) (Rs mn)
1.9%
430.0
FY11
FY12
0.0%
1.5%
1.0%
446.6
5543.9
FY11
5%
435.0
440.0
4446.7
10%
433.5
8%
2.0%
1.0%
0.3%
439.9
4000.0
12%
1.5%
440.0
448.2
12%
15%
449.4
6000.0
2000.0
4.5%
30%
FY14E
FY15E
FY16E
2.0%
3.0%
425.0
Growth (%)
FY13
Revenues from Sylvania (Euro mn)
Growth (%)
SKP Securities Ltd
Page 12 of 20
Havells India Ltd.
3.
With consumer centric

product
portfolio,
electrical
consumer
durables business has
grown by 38% in FY13 to `
7.89 bn from ` 5.7 bn in
FY12. The segment grew
by moderate 8% during
9MFY14 on the due to
weak festive season. We
expect the segment to
grow with the CAGR of
10% during FY1316.
12000.0
45.0%
40.1%
38.0%
40.0%
10000.0
35.0%
30.0%
8000.0
25.0%
21.1%
6000.0
12.0%
15.0%
10395.6
10.0%
FY15E
FY16E
7892.7
8287.3
5.0%
5720.8
2000.0
12.0%
9281.8
20.0%
4000.0
4724.3
FY11
FY12
FY13
FY14E
5.0%
0.0%
0.0
Revenues from Electrical Consumer Durables (Rs mn)
Growth (%)
The segment contributed 15% to the total consolidated revenues of Havells which we expect
to touch 19% by FY16E.
As mentioned earlier the segments revenue is dominated by Fans which contributes about
80% to the segment. Havells is expanding its brand by offering Fans under Standard Brand
with the focus at Southern India such as Tamil Nadu and Karnataka. Recently, Standard
launched 12 new fan models in a regular and premium category.
Expansion in Margins:
Standalone EBIDTA margins of the company expanded of 120 bps yoy to 13.9% during
9MFY14 on the back of better operating cost management, good quality premium products
and high brand recall among the consumers.
The better operating cost management has led to improvement in the standalone margins of
switchgears and consumer durable segment 110 bps and 230 bps respectively, yoy during
9MFY14.
Operating margins of cables and wires segment and standalone lighting and luminaires
segment remained stable.
We expect standalone EBIDTA margins of Havells to cross 14% by FY16E, with further
improvement in the margins of consumer durables.
15.0%
9000.0
EBIDTA Rs mn
8000.0
13.8%
EBIDTAM (%)
7000.0
14.0%
14.2%
14.0%
6000.0
1000.0
3405.5
2000.0
8349.8
7297.2
5331.2
11.8%
3000.0
4556.9
4000.0
13.0%
12.6%
6376.9
12.6%
5000.0
12.0%
11.0%
10.0%
0.0
FY11
FY12
FY13
FY14E
FY15E
FY16E
SKP Securities Ltd
Page 13 of 20
Havells India Ltd.
Margins from Sylvania have started showing the signs of improvement and stability with it
enjoying the EBIDTA margin of 5.3% in FY13 and 4.5% in 9MFY14. Sylvania ended up with a loss
of 0.7% at EBIDTA level in FY10. With the signs of Europe coming out of recession, we expect
Sylvania to maintain its margin at about 5% in the next 23 years.
8.3%
40
9.0%
35
30
5.9%
5.4%
5.3%
EBIDTA (mn Euro)
8.0%
EBIDTAM (%)
7.0%
4.7%
25
4.9%
6.0%
4.9%
5.0%
20
4.0%
2.3%
15
3.0%
2.0%
10
1.0%
5
28
12
0.7%
FY08
FY09
FY10
3
27
37
23
FY11
FY12
FY13
20
22
0.0%
22
1.0%
FY14E FY15E FY16E
2.0%
With the stability of revenues & margins, Sylvania is scheduled to repay its term loans going
forward. Havells standalone entity is also repaying its only longterm debt (principal amount of
USD 20 mn) in 12 equal instilments, thus, bringing down the interest coverage and further
improving margins at standalone as well as consolidated level.
The point here to be noted is that the time period for facilities which are enjoying tax benefits
are slowly getting exhausted, thus, nullifying the low interest payment benefit. We expect the
effective tax rate for Havells for FY14, FY15 and FY16 to be 20%, 26% and 28% respectively.
Profitability of Havells at consolidated levels at a glance:
Standalone Interest Coverage (x)
Consolidated Interest Coverage (x)
50.0
FY11
FY12
90.5
9.3
181.0
16.6
16.3
271.4
50.0
191.1
100.0
40.0
21.0
285.5
200.0
150.0
36.4
443.9
250.0
FY13
FY14E
FY15E
FY16E
20
13.6
800
30.0
400
20.0
200
10.0
10
5.3
Interest Cost (Rs mn)
4.4
4.5
FY11
FY12
FY13
FY14E
FY15E
FY16E
Interest Cost
Interest Coverage (x)
Standalone PAT
Consolidated PAT
16.8%
18.0%
16.0%
5000.0
14.0%
4000.0
8.4%
3000.0
8.8%
9.9%
9.6%
9.7%
7000.0
8.0%
5.9%
6.1%
6.4%
10.0%
4000.0
5.0%
3000.0
4.0%
5.4%
5.7%
6.0%
PAT ` mn
FY15E
FY16
6035.7
FY14E
5305.3
FY13
1000.0
4798.8
FY12
3.0%
5814.3
2.0%
2000.0
3699.2
5713.9
4983.5
4584.3
3713.9
3054.3
4841.0
4.0%
0.0%
FY11
7.0%
12.0%
5000.0
6.0%
0.0
FY11
FY12
FY13
FY14E
FY15E
FY16
0.0
2.0%
1.0%
0.0%
PATM (%)
PAT Rs mn
SKP Securities Ltd
9.0%
8.0%
6000.0
8.0%
2000.0
1000.0
Interest Coverage
3039.3
6000.0
0.0
0.0
15
9.6
600
385.6
60.0
300.0
25
1000
539.2
70.0
350.0
21.8
1200
711.6
400.0
1400
1232.2
80.0
1281.0
90.0
450.0
901.6
84.6
500.0
PATM (%)
Page 14 of 20
Havells India Ltd.
18%
18%
18%
16%
15%
15%
70%
19%
80%
16%
90%
15% 16%
100%
16%
Well diversified business portfolio provides cushion to the topline of the company: The standalone
revenues of the company are almost evenly divided among its different business portfolio. Revenue
mix of the company at a glance:
15%
4.
60%
39%
40%
40%
40%
44%
40%
43%
50%
Consumer Durables
Cables & Wires
30%
FY13
28%
FY12
27%
26%
FY11
27%
25%
10%
Switchgears
25%
20%
Lighting & Luminaries
0%
FY14E FY15E FY16E
High growth consumer durables segment contributed 19% in FY13 whereas lighting & luminaries, and
switchgears contributed 16% and 26% each.
This ensures well diversified revenue streams driven from high growth sectors. This also ensures
that any slowdown in particular sector will not adversely affect the revenues of the company.
5.
SKP Securities Ltd
Leveraging Strong Distribution Network:

Havells push products through its extensive dealer network: Havells is a distribution led
business with strong distribution network.
Its products are sold through its distribution network and new products are launched
leveraging its brand value and strength of dealership network. It uses the distribution network
of Sylvania to push Havells brand in Europe.
The distribution network of Havells, with its strong brand name (Havells, Crabtree, and
Standard) have helped it to expand, pan India, rapidly. Havells garners majority of its revenues
through its strong distribution network.
Havells is now focusing in Tier II and Tier III towns with the population between 50,000
100,000 people.
Havells Galaxy Leveraging Dealer Network: As mentioned earlier Havells has gone one step
ahead by coing up with a unique idea of reaching its customers directly through onestopshop
Havells Galaxy. Its a one stop brand center for all consumer appliances, lighting and electrical
needs. These brand centres provide the customers with the complete range of consumer
durable products manufactured by Havells and facilitate them with personalized services and
support.
Page 15 of 20
Havells India Ltd.
6.
SKP Securities Ltd
Currently, Havells have more than 200 such Galaxies across the country including one galaxy
opened outside India i.e. in Kenya. Company has plans to open another 200 such galaxies in
the coming years, thus covering 250 towns (earlier 130 towns).
These galaxys are run by the existing dealers of the Company. Benefit of the Havells Galaxy is
that the Company gets an outlet for its premium products without incurring extra cost and
they also earn the loyalty of new generation of dealers, hence retaining them.
Governments energy conservation drives undertaken every now and then provides opportunity for
lighting industry:
Lighting accounts for about 20% of electricity consumption in India and majority of lighting
needs of households are met by incandescent bulbs which are not energy efficient as only 5%
of electricity is used for lighting and rest is converted in to heat resulting in the wastage of
energy.
As mentioned CFLs and LED,s provide that energyefficient alternative to the incandescent
lamp to provide the same level of illumination.
Governments efforts for promotion of CFLs have the desired impact on the market with the
sales of CFLs in India having grown from about 20 mn pieces in 2003 to around 304 mn pieces
in 2010.
Initially the penetration of CFLs in household remain low largely due to the high price of the
CFLs, which was 1012 times the cost of incandescent bulbs, whereas, combined penetration
share of incandescent lamps for lighting in the commercial and residential sectors was nearly
80%. Now, people have started accepting CFLs due to prolonged life and low electricity
consumption.
Bachat Lamp Yojana: For, Instance, the Bachat Lamp Yojana was launched by the Government
in February 2009, which focused on the cost barrier to reduce the cost of CFLs to that of
incandescent bulbs.
The scheme promoted replacement of inefficient bulbs with CFLs by leveraging the sale of
Certified Emission Rights (CERs) under the Clean Development Mechanism (CDM) of the Kyoto
Protocol. Under the scheme 60 Watt and 100 Watt incandescent Lamps was to be replaced
with 1115 Watt and 2025 Watt CFLs respectively.
It was estimated that, once achieved, this would save the country 6,000 MW of power, or
around ` 250 bn.
The scheme provided a unique platform for a robust publicprivate partnership between the
Government of India, private sector CFL suppliers and State level Electricity Distribution
Companies (DISCOMs).
The companies that sell these bulbs at subsidized rates was allowed to recover the remaining
amount through the sale of carbon credits under CDM of the Kyoto Protocol.
Bachat Lamp Yojana has failed due to crashing of carbon market.
Page 16 of 20
Havells India Ltd.
Replacing CFL with LEDs on the streets:

Since 2009, the BEE has been providing grants to Indian municipalities to
undertake pilot trials of LED street lamps.
Public lighting on connected roads, in India, requires almost 4,400 MW of

connected load. Replacement by LED saves 5070% reduction in energy
consumption.
Till 2011, 13 LED projects have been completed in cities in Arunachal Pradesh,
Assam, Maharashtra and Nagaland. Anecdotal evidence suggests that results of
these pilots have been mixed, largely because of lack of knowledge about how to
go about procuring quality LED products at the municipal level.
The BEE has also provided grants of USD 100,000 each to Kolkata and Thane for
oneyear trials, to be matched with local funds.
Results to date have been encouraging. The LED luminaires are also providing
more illuminance than the baseline HPS luminaires, while achieving nominal
savings ranging from 40% to 59% for replacement of the two HPS wattage types.
Such efforts made by the Government provide huge opportunities for lighting industry, especially
when the penetration level of the product is low.
Key Concerns
1.
Highly Competitive Industry: All the segments of Havells are highly competitive putting pressure on
the topline and margins of the company. The Company is mitigating the risk by continuous
introduction of new products and optimizing the utilization of its extensive distribution system of
urban and rural areas.
2.
Price volatility of metals: Metals (both ferrous and non ferrous) are the key raw material for the
company, which is highly price volatile. Any adverse movement in the prices may put negative impact
on the margins of the company.
3.
Macroeconomic Scenario of Europe: About 60% revenues of Sylvania come from European region.
Any further surprises in the negative side in Europe may change the consumer perceptions resulting
into deferring of purchases, finally hamper the financials of the company.
4.
Forex Fluctuations: Since, Havells have good exposure in Latin Americas and Europe, any negative
fluctuation in the value of Rupee visvis USD and Euro, may negatively impact the business of the
company.
SKP Securities Ltd
Page 17 of 20
Havells India Ltd.
Valuation
Havells has balanced consumer centric business portfolio. The strong distribution network, a powerful
brand, wide product portfolio, excellent vendor base along with excellent channel partners continue to be
the major strengths of the company.
Since, Havells is the case of strong brand recall, we have valued the stock on the basis of enterprise value
to sales of 1.4x of FY16E revenues method of relative valuation. We recommend BUY rating on the
stock with a target price of ` 1092/ (23% upside) in 18 months.
EV/Sales
Sales (` mn)
EV/Sales (x)
EV (` mn)
Debt (` mn)
Cash (` mn)
Shareholders' Value (` mn)
O/s Shares (mn Shares)
Fair Value (` per share)
CMP (`)
Return (%)
FY16E
94527.2
1.4
132338.1
2985.0
6879.6
136232.7
124.8
1091.8
893.0
22.3%
Source: SKP Research Desk
SKP Securities Ltd
Page 18 of 20
Havells India Ltd.
Financials
(` mn)
CONSOLIDATED FINANCIALS
(All data are in ` mn unless specified, Y/e March)
Income Statement
Net Operating Income
Sales Growth (%)
Operating Expenditure
EBIDTA
EBIDTA Growth (%)
FY13
FY16E
Balance Sheet
FY13
FY14E
FY15E
FY16E
72478.9 80886.5 87320.5 94527.2
Equity Capital
623.9
623.9
623.9
623.9
Reserves
13796.5 17504.2 21718.4
26662.9
Net Worth
14420.4 18128.1 22342.3
27286.8
11.2%
FY14E
11.6%
FY15E
8.0%
8.3%
65790.0 72862.8 78530.3 84794.2

6688.9
8023.8
8790.1
9733.0
Minority Interest
1.8%
20.0%
9.6%
10.7%
Other LT Liab
Depreciation
1096.6
1216.2
1430.9
1342.6
Deferred Tax Liab
EBIT
5592.3
6807.6
7359.2
8390.4
Loan Funds
Interest
1232.2
711.6
539.2
385.6
Total Liabilities
333.7
323.5
349.3
378.1
Goodwill
EBT
4693.8
6419.5
7169.4
8382.9
Exceptional Item
1944.1
421.0
0.0
0.0
823.6
1199.7
1864.0
2347.2
Net Current Assets
5814.3
46.6
4798.8
38.5
5305.3
42.5
6035.7
48.4
Defferred Tax Assets

Total Assets
FY13
FY14E
FY15E
FY16E
PBT
6637.9
5998.5
7169.4
8382.9
Add: Depreciation, Interest &

Other Exppenditure
2351.4
1927.8
1970.1
1728.2
Net change in WC, Tax, Int
2644.2
2668.7
3096.7
2329.7
Cash Flow from Operating

Activities
6345.1
5257.7
6042.7
7781.4
1750.1
4309.7
1500.0
1000.0
355.0
53.0
43.1
48.3
Other Income
Tax
PAT
EPS (`)
Cash Flow Statement
Capital Expenditure
Investments, Sales of FA,
Dividend received and others
Cash flow investing Activities
Net Fixed Assets

Capital WIP
Ratios
4256.7
1456.9
951.7
0.9
0.9
0.9
488.9
541.9
585.0
633.3
619.0
619.0
619.0
619.0
8342.0
9487.7
7189.0
2985.0
23871.2 28777.6 30736.2
31525.1
3694.4
3694.4
3694.4
10892.8 14398.8 14717.9
14375.3
662.5
3694.4
0.0
0.0
8482.8 10295.7 12185.2
13316.7
138.7
138.7
138.7
23871.2 28777.6 30736.2
138.7
31525.1
FY13
250.0
FY14E
FY15E
FY16E
Valuation ratios (x)

P/E
19.2
23.2
21.0
18.5
P/Cash EPS
16.1
18.5
16.5
15.1
7.7
6.1
5.0
4.1
17.2
14.4
12.8
11.0
1.6
1.4
1.3
1.1
EBIDTAM
9.2%
9.9%
10.1%
10.3%
OPM
7.7%
8.4%
8.4%
8.9%
NPM
8.0%
5.9%
6.1%
6.4%
P/BV
EV/EBIDTA
1395.1
0.9
EV/Sales
Earning Ratios (%)
ROE
40.3%
26.5%
23.7%
22.1%
ROCE
24.6%
24.7%
24.9%
27.7%
Cash flow from Financing

Activities
2521.0
657.0
3929.1
5680.7
Net Increase/Decrease in
Cash & Cash equivalents
Current ratio (x)
1.4
1.4
1.5
1.5
2429.0
344.0
656.7
1149.0
D/E (x)
0.6
0.5
0.3
0.1
Opening Cash Balance
2304.7
4729.9
5073.9
5730.6
Debtor Days
44.1
44.1
45.6
43.9
0.0
6879.6
Creditor Days
Inventory Days
FA/Turnover (x)
50.4
180.1
6.7
50.2
179.0
5.6
49.9
180.8
5.9
49.4
181.6
6.6
Cash balance of acquired

subsidiaries
Closing Cash Balance
0.0
4729.9
0.0
5073.9
0.0
5730.6
B/S Ratios
SKP Securities Ltd
Page 19 of 20
Havells India Ltd.
Notes:
The above analysis and data are based on last available prices and not official closing rates. SKP Research is also available on Bloomberg, Thomson
First Call & Investext Myiris, Moneycontrol, Tickerplant and ISI Securities.
DISCLAIMER: This document has been issued by SKP Securities Ltd (SKP), a stock broker registered with and regulated by Securities & Exchange Board of
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April 9, 2014

Havells India Ltd.

Key Share Data

Shareholding Pattern (as on Mar 31, 2014)

Public & Others

Price Performance Havells vs S&P BSE 200

S&P BSE 200

Initiating Coverage BUY

Analyst: Vineet P. Agrawal

SKP Securities Ltd

Outlook & Recommendation

Havells India Ltd.

Business classification of Havells is as follows:

Lighting & Fixtures

Elect Consumer Durables

(Revenue Contribution: 15%)

(Revenue Contribution: 23%)

(Revenue Contribution: 51%)

(Revenue Contribution: 11%)

Industrial & Domestic

Regular & Premium Fans

(CFL & LED)

(Switches, MCBs, capacitors,

(Electric substation to houses,

(Ceiling Fans, Pedestal Fans,

Domestic Cables for

Regular & Premium Fans

SKP Securities Ltd.

Havells India Ltd.

SKP Securities Ltd

Infrastructure: Havells has stateoftheart switchgear manufacturing facilities at Baddi,

MCB is an automatically operated electrical switch designed to protect an electrical

Havells India Ltd.

SKP Securities Ltd

Havells capacitors find applications

Havells India Ltd.

Source: Company & SKP Research Desk

Lighting and Fixtures Business:

Consumer Lighting, LED Lighting, Industrial Lighting, Road

Specialty & HID Lamps

Finds applications in Bill boards, showrooms, marriage halls,

Source: Company & SKP Research Desk

SKP Securities Ltd

Havells India Ltd.

SKP Securities Ltd

Infrastructure: Sylvania has its stateoftheart manufacturing facilities in Europe (Germany,

Havells India Ltd.

Source: Company & SKP Research Desk

SKP Securities Ltd

Infrastructure: Havells manufacturing facility is situated at Haridwar, Uttarakhand. The plant is

Havells India Ltd.

Industry: Domestic appliance market is pegged at around ` 50 bn with premium segment

Track record of Successful Acquisitions

Towers & Transformers Ltd

Lighting & Luminaries

SKP Securities Ltd

Havells India Ltd.

Havells Galaxy Leveraging Distribution Channel

SKP Securities Ltd

Havells India Ltd.

Sylvania, no more a drag on Havells Improving Financials display of strong management

Sylvania no more a drag

Sylvania, before and after restructuring, at a glance: