Havell Industry Report

COMPANY PROFILE
Havells India Limited
REFERENCE CODE: BC0F8FD0-E57E-4AEF-9D00-C63105DB5F2C

PUBLICATION DATE: 28 Apr 2015
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TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
Business Description...........................................................................................4
History...................................................................................................................5
Key Employees.....................................................................................................8
Key Employee Biographies..................................................................................9
Major Products and Services............................................................................12
Top Competitors.................................................................................................13
Company View.....................................................................................................14
Locations and Subsidiaries...............................................................................16

MarketLine
Page 2

Company Overview
COMPANY OVERVIEW
Havells India (Havells) is an electrical and power equipment manufacturer. The company's products
include industrial and domestic circuit protection devices, cables and wires, motors, fans, modular
switches, home appliances, electric water heaters, power capacitors, compact fluorescent lamps
(CFL) lamps, luminaires for domestic, commercial and industrial applications. Havells markets its
products under the brand names, Havells, Crabtree, Sylvania, Concord, Luminance and Standard.
The company operates in Asia, Europe, Africa and Americas. It is headquartered in Noida, India
and employs around 6,500 people.
The company recorded revenues of INR81,858 million (approximately $1,362.1 million) in the fiscal
year ended March 2014, an increase of 12.9% over 2013. The company's operating profit was
INR6,269.5 million (approximately $104.3 million) in fiscal 2014, an increase of 11% over 2013. Its
net profit was INR4,463.3 million (approximately $74.3 million) in fiscal 2014, a decrease of 23.2%
compared to 2013.
KEY FACTS
Head Office

QRG Towers
2D Sec 126
Express way
Noida 201304
Uttar Pradesh
IND
Phone
91 120 477 1000
Fax
91 120 477 2000
Web Address
http://www.havells.com
Revenue / turnover 81,858.0

(INR Mn)
Financial Year End
March
Employees
6,500
BSE Ltd Ticker
517354
National Stock
Exchange of India
Ticker
HAVELLS

MarketLine
Page 3

Business Description
BUSINESS DESCRIPTION
Havells India (Havells) is an India-based fast moving electrical goods (FMEG) company.The company
operates its manufacturing facilities at Faridabad in Haryana, Alwar and Neemrana in Rajasthan,
Haridwar in Uttarakhand, Sahibabad and Noida in Uttar Pradesh, and Baddi in Himachal Pradesh.
The company operates through four segments: switchgears, cables, lighting and fixtures, and
electrical consumer durables.
Havells' switchgears segment offers domestic and industrial switchgears, electrical wiring accessories,
industrial motors and capacitors. The company offers a range of switchgear products, including
Crabtree XPRO switch gears, miniature circuit breakers (MCB), residual current circuit breakers
(RCCB), isolators, indicator lights, residual current circuit breakers with over-current protection
(RCBO) and time switches.
The cables segment offers aluminum power cables, copper control cables, copper flexible cables,
solar cables, fire survival cables and specialty cables.
The lighting and fixtures segment manufactures compact fluorescent lamps (CFLs), consumer lighting
products, light-emitting-diode (LED) lighting products, down lighters, industrial lighting products, road
lighting products, specialty lamps, luminaries, HID lamps, home decor lighting products, commercial
lighting products, landscape bunker lighting products, area lighting products, Sylvania lighting products
and other lighting fixtures.
Under the electrical consumer durables segment, the company manufactures fans, water heaters
and domestic appliances. The company offers various types of fans such as ceiling fans, table fans,
wall mounting fans, pedestal fans, air circulator fans, ventilating fans, high speed fans and exhaust
fans. Havells designs and manufactures a range of domestic appliances, including juicers, mixer
grinders, hand blenders, choppers, steam and dry irons, pop-up toasters, sandwich makers, room
heaters, electric cookers, induction cookers and kettles.
The company also manufactures modular switches and motors, including foot mounting, flange
motor, foot cum flange, inverter duty motors with forced cooling, crane duty motors, brake motors
and smoke extraction motors.
Havells markets its products under the brand names, including Havells, Crabtree, Sylvania, Concord,
Luminance and Standard.
The company' subsidiaries include Havells Sylvania Dubai FZCO, Havells USA Inc, Havells Holdings
Limited, Havells Exim Limited, Havells Malta Limited, Havells Sylvania Sweden A.B., Havells Sylvania
France S.A.S., Havells Sylvania Argentina S.A. and Havells Sylvania Europe Limited among others.

MarketLine
Page 4

History
HISTORY
Havells India (Havells) commenced trading operations in New Delhi, India, in 1958.
In 1976, the company set up the first manufacturing plant for rewireable switches and changeover
switches at New Delhi, India.
Havells established a manufacturing plant for HBC Fuses at Delhi, India, in 1979 and an energy
meters facility at New Delhi, India, in 1980. In 1983, Havells acquired Towers and Transformers
(TTL), an energy meters manufacturing company.
The company formed a joint venture with Geyer of Germany and started manufacturing miniature
circuit breakers (MCBs) in 1987.
In 1990, Havells started manufacturing changeover switches at Sahibabad, India. In 1993, the
company established another plant at Faridabad, India, for manufacturing control gear products. In
1996, Havells acquired a power cables and wires manufacturing plant at Alwar, India.
The company acquired Electric Control & Switchboards, a manufacturer of customized packaged
solutions at Noida, India, in 1997. In 1998, Havells introduced high-end Ferraris meters through a
joint venture with a Germany-based company called DZG.
In 2000, Havells acquired a controlling stake in Duke Arnics Electronics and Standard Electricals.
In 2001, Havells acquired business of Havells Industries, MCCB of Crabtree India and merged ECS
into the company to consolidate its area of core competence.
Standard Electrical Company became a 100% subsidiary of the company in 2002. In the same year,
the company attained the International Electrotechnical Commission (IEC) certification for industrial
switchgear and Canadian Standards Association (CSA) certification for all of its manufacturing plants.
In 2004, Havells established manufacturing facilities for domestic switchgear, compact fluorescent
lamp (CFL), ceiling fans at Baddi, Faridabad and Noida respectively. In the same year, the company
opened a marketing office in London through its wholly owned subsidiary, Havells U.K.
The companys fans manufacturing plant was set up in Haridwar, India, in 2005. In the same year,
the company set up research and development center at its headquarters in Noida.
In 2006, Crabtree India merged with Havells. In the same year, Havells expanded its manufacturing
plants at Haridwar, Alwar and Baddi with the addition of CFL production unit, production capacity
and an export oriented unit (EOU) respectively.

MarketLine
Page 5

History
Havell's Netherlands B.V., a step subsidiary of Havells, acquired Sylvania, a Frankfurt, Germany-based
lighting company, in 2007.
In 2008, Crabtree, a brand of Havells, launched a new range of AURA IWS (In-Walled Switch)
switches, an in-wall switching system. In the same year, Havells launched consumer lighting fixtures
products and also introduced a new range of CFL called LILIPUT.
The company launched Endura Lite, a product in the light-emitting-diodes (LED) market and a
designer range of distribution board DBOXx in 2009. In the same year, Havells launched a new
series of energy saving commercial lighting fixtures Equilibro and Ivy Mirror Optics.
In 2010, Havells introduced a new range of CFLs with HPF (high power factor >0.85) integral ballasts.
In the same year, Havells announced the opening of its first display and learning center Havells
World in New Delhi, India.
The company opened its first display and learning center Havells World, in Mumbai, India in 2010.
In the same year, Havells ventured into home comfort products, with its entry into electric water
heater business. Also in the same year, the company set up an additional plant for its cable and
wire division at Alwar in Rajasthan.
In 2011, Havells' switchgear manufacturing division established an additional plant at Sahibabad
Industrial Area, Ghaziabad, Uttar Pradesh, to cater to both domestic and international markets. In
the same year, Havells entered into home appliances business to cater to the domestic appliance
market. Also in 2011, the company entered into a joint venture named Jiangsu Havells Sylvania
Lighting Co. Ltd. with Shanghai Yaming Lighting Co. Ltd, a lighting company based in China for
providing energy and lighting products for global Sylvania and local China markets.
Havells changed its registered office in New Delhi from 1/7, Ram Kishore Road, Civil Lines to 1, Raj
Narain Marg, Civil Lines in 2012. In the same year, the companys wholly owned subsidiaries, Havell's
Netherlands BV and Flowil International Lighting (Holding) BV (Havells Sylvania) entered into a
settlement agreement with Osram Sylvania Inc and OSRAM AG. The settlement confirmed and
clarified the jurisdictional ownership of the Sylvania brand. Osram Sylvania Inc. owns the Sylvania
trademark in the US, Puerto Rico, Canada and Mexico, and Havells Sylvania owns the trademark
in the rest of the world.
Also in 2012, the company set up new lighting fixtures plant in Neemrana. Also in the same year,
the company launched Crabtree XPRO switchgear and copper flexible cables.
In 2013, QRG Enterprises Ltd, a company that owns the brand name and trade mark "Havells",
entered into a revised trademark license agreement with the company. Pursuant to which, the brand
would be transferred to the company with effect from April 2016.
The company appointed Anil Rai Gupta as the Chairman and Managing Director in November 2014.

MarketLine
Page 6

History
Havells appointed Ameet Kumar Gupta as the Whole-Time Director in January 2015.
In April 2015, the company proposed to acquire 51% stake in Promptec Renewable Energy Solutions
Pvt Ltd, a Bangalore based company engaged in marketing and manufacturing of LED products
including street lighting, office lighting and solar lighting.

MarketLine
Page 7

Key Employees
KEY EMPLOYEES
Name
Job Title
Board
Anil Rai Gupta
Chairman and Managing Director
Executive Board
48302000 INR
Rajesh Gupta
Director, Finance
Executive Board
45715000 INR
Ameet Kumar Gupta
Whole-Time Director
Executive Board
Surjit Gupta
Director
Non Executive Board
Pratima Ram
Director
Non Executive Board
T V Mohandas Pai
Director
Non Executive Board
Puneet Bhatia
Director
Non Executive Board
Vijay Kumar Chopra
Independent Director
Non Executive Board
Sunil Behari Mathur
Non Executive Board
Avinash P Gandhi
Non Executive Board
Surender Kumar Tuteja
Non Executive Board
Adarsh Kishore
Non Executive Board
Sanjay Kumar Gupta
Company Secretary and

Compliance Officer
Senior Management

MarketLine
Compensation
Page 8

Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES

Anil Rai Gupta
Board: Executive Board
Job Title: Chairman and Managing Director
Since: 2014
Age: 46
Mr. Gupta serves as the Chairman and Managing Director at Havells India (Havells) since November
2014. He served as the Joint Managing Director at Havells India (Havells). He serves as a Director
at QRG Enterprises, QRG Corporate Services, QRG Central Hospital & Research Centre, QRG
Medicare, Janalakshmi Financial Services Private Limited, Sylvania Lighting International, Flowil
International Lighting (Holding), Havells Netherlands, Havells Netherlands Holding, Havells Malta
and Havells Holdings. Mr. Gupta holds a BA degree in Economics and an MBA in Marketing and
Finance from the Wake Forest University, North Carolina, the US.
Rajesh Gupta
Board: Executive Board
Job Title: Director, Finance
Age: 58
Mr. Gupta serves as the Director of Finance at Havells India (Havells). He is a Chartered Accountant
having experience in finance and allied fields.
Surjit Gupta
Board: Non Executive Board
Job Title: Director
Age: 73
Mr. Gupta serves as a Director at Havells India (Havells). He serves as a Director at Havells India
Limited, QRG Enterprises Limited, QRG Corporate Services Limited, QRG Central Hospital &
Research Centre Limited and QRG Medicare Limited. Mr. Gupta holds F.Sc. from Punjab University
Diploma in Mechanical Engineering from State Board of Technical Education, Punjab.
Vijay Kumar Chopra

Job Title: Independent Director
Age: 69

MarketLine
Page 9

Mr. Chopra serves as an Independent Director at Havells India (Havells). He serves as a Director
at Rolta India Limited, Dewan Housing Finance Corporation Limited, Future Retail Limited, PNB
Metlife India Insurance Company Limited, Reliance Capital Pension Fund Limited, Milestone Capital
Advisors Limited, Jaiprakash Associates Limited, Responsive Industries Limited, Bhartiya International
Limited, RGVN (North East) Micro Finance Limited, India Infoline Finance Limited, Pegasus Assets
Reconstruction Private Limited, Religare Invesco Asset Management Company Private Limited and
Bandhan Financial Services Private Limited. Mr. Chopra served at Central Bank of India, Punjab &
Sindh Bank, Corporation Bank and SIDBI. He served as a Wholetime member at SEBI. He is a
Chartered Accountant & Certified Associate of Indian Institute of Bankers.
Sunil Behari Mathur

Age: 71
Mr. Mathur serves as an Independent Director at Havells India (Havells). He serves as a Director
at Havells India Limited, IDFC Trustee Company Limited, Cholamandalam MS General Insurance
Company Limited, National Stock Exchange of India Limited, National Collateral Management
Services Limited, Hindustan Oil Exploration Company Limited, DCM Shriram Industries Limited,
Infrastructure Finance & Leasing Company Limited, Housing Development Infrastructure Limited,
Ultratech Cement Limited, Axis Bank Limited, Minda Corporation Limited, ITC Ltd, Janalakshmi
Financial Services Private Limited, Munich Re India Services Private Limited and India Mortgage
Guarantee Corporation Pvt Ltd. Mr. Mathur served as the Chairman at LIC corporation. He held
various positions such as the Senior Divisional Manager of Gwalior Division, Chief of Corporate
Planning, General Manager of LIC (International) E.C., Zonal Manager in Charge of Western Zone
and Executive Director at LIC. Mr. Mathur is a Chartered Accountant.
Avinash P Gandhi
Age: 77
Mr. Gandhi serves as an Independent Director at Havells India (Havells). He serves as a Director
at Fag Bearings India Limited, Lumax Industries Limited, Uniproducts (India) Limited, Minda
Corporation Limited, Indo Alusys Industries Limited, Minda Sai Limited, Avinar Consulting Private
Limited, Minda Valeo Security Systems Private Limited and Minda Farukawa Electric Private Limited.
Mr. Gandhi holds B.E. (Mechanical) degree.
Surender Kumar Tuteja


MarketLine
Page 10

Age: 70
Mr. Tuteja serves as an Independent Director at Havells India (Havells). He serves as a Director at
SML Isuzu, A2Z Maintenance & Engineering Services, Adani Logistics, Daawat Foods, Trident,
Shree Renuka Sugars, Axis Private Equity, Intas Pharmaceuticals, Shree Renuka Energy, Adani
Enterprises, Gujarat Foils, LT Foods, PTC India Financial Services, SIDBI Venture Capital Limited,
Tiger Warehousing Cold Chain Private, Pegasus Assets Reconstruction Private, Topworth Energy
Private, Devenio Optimus Advisors Private, Norwest Estates Private Limited and Altaris Credit Rating
Agency Private. Mr. Tuteja served on different posts in Government of India, Government of Punjab
and in Public Sector.
Adarsh Kishore
Age: 69
Mr. Kishore serves as an Independent Director at Havells India (Havells). He serves as a Director
at AEGON Religare Life Insurance Company and CFM International. Mr. Kishore was a Former
Executive Director at International Monetary Fund. He holds IAS, Phd in Political Economy.

MarketLine
Page 11

Major Products and Services
MAJOR PRODUCTS AND SERVICES

Havells India (Havells) is an electrical and power equipment manufacturer. The company's key
products and brands include the following:
Products:
Switchgears
Switches
Electrical wiring accessories
Motors
Capacitors
Cables and wires
Underground cables
Energy saving lamps (compact fluorescent lamps (CFLs))
Luminaries
Fans
Water heaters and Geysers
Domestic appliances
Brands:
Havells
Crabtree
Sylvania
Concord
Standard

MarketLine
Page 12

Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Havells India Limited
Bajaj Electricals Limited

Crompton Greaves Limited
Finolex Cables Limited
Eon Electric Ltd

MarketLine
Page 13

Company View
COMPANY VIEW
A statement by Qimat Rai Gupta, the Former Chairman and Managing Director at Havells India is
given below. The statement has been taken from the company's 2014 annual report.
Dear Shareholders,
Greetings from Havells!
When we create a brand story with a difference, the result is an unusual set of products, offerings
and deep connect with the end customer
In terms of macro-economic trends, the last fiscal was worse than the previous year, as the winds
of slowdown touched Indian shores after sweeping through the US, Europe, Japan and China.
This aggravated the overall inflationary trend in the country, which remained in double-digits through
a large part of the year. As a result, the interest rates too remained high throughout. All this, coupled
with the policy paralysis and slow decision-making process at the government level, made things
worse for businesses as well as customers.
Havells did an overall good job of wading through this quagmire of challenges and posted 11.71%
revenue growth to Rs.4,720 crores, while improving PAT margins to 10%. In the process, the
Company also added nearly 50% to its investors wealth, as its market capitalization of Rs.8,033
crores at the beginning of the fiscal rose to Rs.11,657 crores on 31st March, 2014. The Company
also paid Rs.15 per share as dividends.
This was made possible because of the relentless passion for innovation, living the green ethos and
being customer-friendly at all times. The years of efforts to grow the Company through branding and
distribution, like a Fast Moving Consumer Products Company, are now bearing fruits.
Our branding spends through the year were 2.4% of revenues. The distribution network crossed
5,800. The Havells brand maintained top of the mind recall among customers, while the market
share across product categories strengthened during the year
The overseas business of Sylvania also showed resilience in facing the challenges of economic
slowdown and currency fluctuations. Most importantly, this business has now emerged stronger and
leaner with reduced debts and healthy cash flows. Every effort is being made to realize the business
full potential, which is much higher if we take into account its size, brands and customer relations.
Any future improvement in the economic scenario in Europe and Latin America would greatly help
the Company.

MarketLine
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Company View
Havells has reached an important juncture in its journey towards becoming a wellrecognised Fast
Moving Electrical Goods Company in India. The Company has already created production capacity
to meet most of its requirements over the next couple of years. This will mean the capital investments
will be limited from now onwards. At the same time, increasingly better utilization of installed capacities
would add to overall profitability as well as cash accruals.
While long-term economic success and growth are necessary for survival of any entity, that is not
sufficient by itself. Havells has always believed that a business is an active entity of society and
economy, and plays an important role in nation-building. As a result, we have always viewed our
Corporate Social Responsibility (CSR) activities as a privilege rather than an obligation. Children
are the future of the nation and hence, nothing can parallel their safety, proper nourishment and
care in creating a better, more prosperous tomorrow. With this thought, Havells has focused its CSR
efforts on providing mid-day meals to children in government schools. Today, Havells has created
the entire infrastructure - from kitchen to distribution vans - to cover 35,000 school children every
day.
We look forward to the new financial year with a lot of optimism. Most experts predict the Indian
economy to grow faster in financial year 2014-15 compared to financial year 2013-14. In that sense,
the domestic growth cycle is likely to have bottomed out and recovery is set to begin. Such a scenario
will be very good for the country as well as Havells.
Building trust-based transparent relationships that enable each individual to excel has always been
at the heart of Havells corporate philosophy. We believe that this trust emanates from our concerted
focus on green ethos, search for innovative efficiencies and customer friendliness. This forms the
secret ingredient that distinguishes us from others. I would like to thank our people for demonstrating
their prowess and excelling in their areas, coming out with new solutions to old problems and, in the
process, helping the Company grow. I also thank our trade associates, whose dedication and
commitment remain the base on which Havells growth has become possible. Together, we have
much to look forward to as we strive to make Havells even stronger and bigger.
I thank you all for supporting and encouraging us through this long journey. I would also like to
express my gratitude towards the Board of Directors, whose support and guidance have been
invaluable on our path of progress.

MarketLine
Page 15

Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES

Head Office
QRG Towers
2D Sec 126
Express way
Noida 201304
Uttar Pradesh
IND
P:91 120 477 1000
F:91 120 477 2000
http://www.havells.com
Other Locations and Subsidiaries

Havells India Limited (China)
1102
Guangzhou Radio Group Science and
Technology
Building No. 163 Pingyun Road
West Of Huangpu Avenue
Guangzhou 510656
CHN
Havells Sylvania Dubai FZCO

Liu 15
Dubai Airport Free Zone
Dubai
ARE
Havells USA Inc.

125-B Villanova Drive
Atlanta
Georgia 30336
USA
Havells India Limited (Mexico)

Montes Urales
455 3er piso Col. Lomas de Chapultec
C P 11000
MEX
Havells India Limited (the UK)

Longbow House
14-20 Chiswell Street
London EC1Y 4TW
GBR
Havells Holdings Limited

Isle of Man
GBR
Havells Exim Limited

HKG
Havells Malta Limited

MLT
Havells Sylvania Sweden A.B.

SWE
Havells Sylvania France S.A.S.

FRA

MarketLine
Page 16

Locations and Subsidiaries
Havells Sylvania Argentina S.A.

ARG

MarketLine
Havells Sylvania Europe Limited

GBR
Page 17
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COMPANY PROFILE

Havells India Limited

REFERENCE CODE: BC0F8FD0-E57E-4AEF-9D00-C63105DB5F2C

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

91 120 477 1000

91 120 477 2000

Revenue / turnover 81,858.0

BSE Ltd Ticker

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Anil Rai Gupta

Chairman and Managing Director

Ameet Kumar Gupta

Non Executive Board

Non Executive Board

Non Executive Board

Non Executive Board

Vijay Kumar Chopra

Non Executive Board

Sunil Behari Mathur

Non Executive Board

Non Executive Board

Surender Kumar Tuteja

Non Executive Board

Non Executive Board

Sanjay Kumar Gupta

Company Secretary and

Havells India Limited

Havells India Limited

KEY EMPLOYEE BIOGRAPHIES

Vijay Kumar Chopra

Havells India Limited

Havells India Limited

Sunil Behari Mathur

Surender Kumar Tuteja

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

MAJOR PRODUCTS AND SERVICES

Havells India Limited

Havells India Limited

Bajaj Electricals Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

Havells India Limited

LOCATIONS AND SUBSIDIARIES

Other Locations and Subsidiaries

Havells Sylvania Dubai FZCO