Chairman’s

Letter

We remain
focussed on
growing our
network. We
have expanded
our ‘Galaxy’
outlets to 375
stores across the
country.
Dear Shareholders,

We registered a
“Simplicity, Transparency and
Trust” – the guiding philosophy
of our management team – is
a legacy that has been handed
down to us from our late Founder
Chairman, Shri Qimat Rai Gupta
(QRG). A true visionary in every
sense of the word, he left us with
the wisdom that the consumer
always comes first.
The global macroeconomic
environment continues to be
in a state of flux with recession
in key developed economies,
soft commodity prices, geo-
political tensions and volatility in
global financial markets causing
uncertainty and trepidation.
over the last financial year. The profit
before tax and exceptional item grew
by 10%.
Given the flurry of initiatives taken by
the Central government, including its
focus on smart cities and industrial
corridors as well as incentives for
the housing sector in the budget, we
expect to clock better growth in all
our segments in the coming
financial year.
Amidst the current macroeconomic
setup, we continue to invest in our
future and augment our brand building
activities. Our focus continues to be
on maintaining profit margins and
strengthening of our dealer network.

100%
growth in revenues from our
In this environment, your
Company’s revenues grew by 4%
We are also fervently pursuing our
initiatives to expand our visibility and
reach out to tier-2 and tier-3 cities.

LED business

28

Havells has been committed to
the “Make in India” initiative since
1976, when we set up our first
manufacturing unit. Since then, we
are constantly striving to become
bigger and better and enhance our
stakeholder connect. In line with this
endeavour, in FY 2015-16 we have
set up a manufacturing facility at
Neemrana, Rajasthan. It is an ultra-
modern electric water-heaters plant,
designed to have minimal manual
intervention, while significantly
enhancing productivity. With this
state-of-the-art plant, Havells now
operates twelve manufacturing units
in India. We also manufacture over
90% of our products in-house, which
is a big step in realising our dream
of self-sufficiency and our nation’s
mission to ‘Make in India’.
We remain focussed on growing our
network. During the year, new offices
were opened at Srinagar, J&K and
Raipur, Chhattisgarh and a premium
range of switchgears was launched in
Karnataka, Tamil Nadu, Chandigarh,
Andhra Pradesh and Telangana. Our
plant at Neemrana is equipped with
the latest and best-in-class machines
from Switzerland, Japan and Italy
and offers a wide range of top quality
products to our consumers. We have
also unveiled a new logo for our line
of products under the ‘Standard’
brand, to align it with the changing
preferences of our consumers.
The LED lighting segment of our
business continues on its high growth
trajectory and looks promising
in the coming quarters as well.
Despite a high base, we registered
a 100% growth in revenues from
our LED business during the year
and contribute 51% of our Lighting
division. During the year, your
Company enlarged its portfolio in
this segment by working closely
with Promptec Renewables Energy
Solutions, a company we acquired
in FY 2014-15. We are confident
that a combination of the expected
surge in consumer demand for this
product and the government’s push
to LED and Solar lighting solutions
will boost market sentiment and help
us to achieve further growth in this
business.
During the year, your Company
successfully completed the
divestment of 80% of its stake in
Sylvania Malta to Shanghai Feilo
Acoustics Co Ltd. Post this sale, we
have renewed our focus on the Indian
operations and your Company will
continue to expand in the domestic
market.
Your Company reaffirms its
commitment to doing business in
a responsible manner, fulfilling its
social responsibilities with utmost
passion and sincerity. We continue
to serve mid-day meals to 57,000
school children everyday across
672 schools in Alwar, Rajasthan.
We have also built 800 eco-friendly
bio-toilets for the students till date
and are hopeful this will help bring
Business
Review
down the dropout rate, especially
among girl students, and inculcate
good hygiene habits amongst these
Directors’
children.
Report
An ocean of opportunities lies
before us and given our passion
for what we do, your Company is
confident of leveraging its assets
and human capital to continue on
the path of growth, profitability and
firm customer orientation.
Management Discussion
Our enduring success would not
and Analysis
have been possible without the
support and cooperation of our
people, partners and associates.
My heartfelt gratitude to the Board
of Directors for their invaluable
guidance throughout this exciting
journey.
As I look ahead to the future, I see
unprecedented opportunities as
Corporate Governance
the Indian economy accelerates
ahead. In the India of tomorrow,
we envision reaching more Report
consumers and bringing joy to
their homes with top notch quality
products across all segments of
the FMEG industry.
At Havells, we assure you, we have
the Future in Sight and Tomorrow
in Vision.
Thanking you,
Statements
Financial
Yours truly
ANIL RAI GUPTA
29