V-GUARD INDUSTRIES LTD

Originated in 1977, the company offers wide range of products like Voltage Stabilizer, Digital UPS, Inverter and Inverter Batteries, Electric Water Heaters, Solar Water Heaters,
Domestic Pumps, Agricultural Pumps, Industrial Motors, Domestic Switch Gears, Distribution Boards, Wiring Cables, Industrial Cables, Induction Cooktops, Mixer Grinders,
Fans,Rice Cooker, Gas Stoves & Solar Power Systems.
 armed with vast network of distributors, direct dealers, retailers and service centers in its endeavor to reach every nook and corner of the country.
• V-Guard Industries is a dominant player in the South Indian market.
• V-Guard outsources 60% of its product profile while the rest are manufactured in-house.
• Market share of about 15%-16% in water heaters.
• Price range ranges from INR 2178 – INR 16000
BUSINESS STRATEGY : DIFFERENTIATION
• V-Guard industries entered into the consumer electrical segment with the business strategy of differentiation.
• It focuses on providing differentiated products with superior quality and design thereby keeping prices more than competitors. For example if we compare water heater in the range
of 10 L we will find that :
V-GUARD BAJAJ ELECTRICALS

CAPACITY : 10 L
DESIGN : More aesthetic and premium
RATING AS PER BEE :
WARRANTY : 7 year warranty on inner
tank, 4 year warranty on heating
element, and 2 year warranty on the
overall product
PRICE : Rs 11450
CAPACITY : 10 L
DESIGN : Basic design and no premiumness
RATING AS PER BEE :
WARRANTY : 2 years on overall product
PRICE : Rs 8853
• The company has shifted its focus from conventional business approach to a more vigorous future-centric model.
• New strategic business model is centered on creating a more digitally integrated enterprise, with focus on consumer centric and high margin product categories.
• The company has strategically shifted towards increased premiumisation due to change is consumer patterns , backed by in-house manufacturing.
• V-Guard’s Market hits in water heater :-
1. Pebble water heater series –
• This aesthetically designed water heater was a massive success. It accurately targets the millennial consumers who want not only technical qualities in a product but also aesthetic
designs to suit the décor of their homes.
• Price range starts from INR 8450

2) Verano water heater

• V-guard is a customer centric company which does core study about its customer needs wants and demands.
• They Launched India's first IoT enabled water heater namely Verano which is a smart water heater as it is controlled by Wi-Fi giving tough competition to normal water heaters.
• The new product is in response to the changing needs of consumers, particularly young buyers who are increasingly adopting smartphone-enabled products. Also, home automation is
set to become a mainstream
• One of the major strengths of the company is its manufacturing facilities across the country.
• The company focuses on in-house manufacturing which reduces manufacturing cost thereby achieving more profit margins for the firm.
• They own all designs and moulds and provide R&D support to vendors.
• They also procure raw material and follow price negotiation with the suppliers
• https://
www.vguard.in/uploads/investor_relations/V-Guard_Industries_Q4%2
0FY2018_Results_Presentation.pdf
• https://www.thehindubusinessline.com/companies/vguard-unveils-ap
pcontrolled-water-heater/article8733201.ece