HAVELLS INDIA LTD.

PASSION IS IN EVERYTHING HAVELLS DOES

 ABOUT THE COMPANY

 Havell was formed during the year 1958.

 Headquartered in Noida, Uttar Pradesh, India.
 It is the largest electrical equipment company in India.
 Market Capitalisation of 32,063.01 Crs.
 Havells produces a huge range of products that range from home and kitchen appliances, commercial and industrial
appliances, domestic lightening, LED lighting, modular switches, fans, water heaters, induction motors, and many more.
 The company owns various brands like Havells, Lloyd, Standard Electric, Crabtree, and Promptech.
 With 94 branches/representative offices and over 8000 professionals in over 50 countries across the globe.
 It is a fast-moving electrical goods company that has a strong global presence having an extensive distribution network
with world class quality.
 Havells India has 14 manufacturing plants in India that are located at Baddi, Haridwar, Faridabad, Sahibabad, Alwar,
Assam, and Neemrana.
 CHAIRMAN AND MANAGING DIRECTOR

Late Sh. Qimat Rai Gupta Anil Rai Gupta

Founder Chairman & Managing Director Chairman & Managing Director
 BOARD OF DIRECTORS

 Non-Executive Non-Independent Director  Independent Director

1. Surjit Kumar Gupta 1. Vellayan Subbiah

2. T.V. Mohandas Pai 2. Pratima Ram

3. Puneet Bhatia 3. Jalaj Ashwin Dani

 Whole-Time Director 4. Surender Kumar Tuteja

1. Ameet Kumar Gupta 5. Vijay Kumar Chopra

2. Rajesh Kumar Gupta [Whole-Time Director 6. Dr. Adarsh Kishore

(Finance) and Group CFO]  Additional Director (Independent)
3. Siddhartha Pandit 1. Upendra Kumar Sinha
 CREDIT RATING

(i) Corporate Governance Rating

• Havells in its endeavour to reinforce and test its commitment for Corporate Governance opted to go for a
Corporate Governance Rating from CARE.
• CARE has assigned CARE CGR 2+ [Two Plus] Rating to the Corporate Governance practices of the Company.
(ii) Financial Facilities
• CARE has assigned a AAA [Triple A] rating to the long-term facilities of the Company during the current financial
year. This rating is applicable to facilities having a tenure of more than one year. Instruments with this rating are
considered to have the highest degree of safety regarding timely servicing of financial obligations.
• CARE has also assigned CARE A1+ [A One Plus] rating to the short-term facilities of your Company. This rating
is applicable to facilities having a tenure upto one year. Instruments with this rating are considered to have very
strong degree of safety regarding timely payment of financial obligations.
 RATIO ANALYSIS
2017-2018 2018-2019
(1) LIQUIDITY RATIOS
(a) Current ratio 1.29 1.51
(b) Quick ratio 0.81 0.75
(2) SOLVENCY RATIOS
(a) Debt Equity ratio 0.02 0.01
(b) Interest coverage ratio 41.35 72.07
(3) ACTIVITY RATIOS / PERFORMANCE RATIOS
(a) Fixed Assets Turnover ratio 6.47 6.05
(b) Total Assets Turnover ratio 1.25 1.40
(c) Debtors Turnover ratio 29.62 26.79
(d) Average Collection Period 12.32 13.62
(e) Creditors Turnover ratio 1.47 1.25
 2017-2018 2018-2019
(f) Average Payment Period 249 291
(g) Inventory Turnover ratio 6.41 5.70
(h) No. of Days of Inventory Outstanding 57 64
(4) PROFITABILITY RATIOS
(a) EBITDA Margin 13.82% 13.03%
(b) Profit Margin 8.10% 7.75%
(c) Return on Capital Employed 26.89% 27.50%
(d) Return on Equity 17.92% 18.51%
(e) Return on Assets 10.13% 10.89%
(f) Dividend Payout ratio 37.14% 35.80%
(g) Dividend Yield ratio 0.82% 0.58%
(h) Price Earning ratio 45.30 61.33
(i) Price to Book Value - 7.60
 2017-2018 2018-2019

LEVERAGE

(1) Degree of Operating Leverage 1.4079 0.6833

(2) Degree of Financial Leverage 1.1205 1.1209

(3) Combined Leverage 1.5776 0.7659

(4) Total Leverage 2.5285 1.8042

 SWOT ANALYSIS
STRENGTHS WEAKNESSES
 High Recall and Loyalty 
 Preferred Choice for Electrical Products  Small Market Share at the Global Level
 Huge Product Range   The slowdown of Real Estate 
 Global Presence  Global Market Performance
 Good Command on Fast Growing Countries 
 Switchgear Segment
 Good Acquisition History 
 The company has delivered a poor growth of
 High R&D Investment 
4.52% over past five years.
 In-house Manufacturing
 Slowdown in global markets will effect more
 Havells became the first FMEG Company to offer door step
service via its initiative ‘Havells Connect’.  adversely after a series of acquisitions
 Company has reduced debt.
 Company with Zero Promoter Pledge
 Effectively using its capital to generate profit - RoCE
improving in last 2 years
 OPPORTUNITIES THREATS

 Delay in execution of Power Projects

  Chinese Firm Acquisition :  Unorganized Market 

Havells India sees a good opportunity on the acquisition  Changing Government Policies 
of low-cost manufacturing of Chinese firms.   A Single Entry for the Business

 Increase in Customer Market Havells India sees a maximum business that comes from only India
and hence it’s business revenue depends only on the
 Business Diversification: Indian economic situation. This is a serious threat to the overall
growth of the business. 
Going up the value chain will, in fact, provide more
 Environmental legislations on industrial wastes
opportunity to see new business domains for the company
 Intense competition in the sector
 Weak cycles of the sector
 Highly regulated electrical sector
 Rising Delivery Percentage Compared to Previous  Stocks with high PE (PE > 40)
Day and Month, Strong Volumes
ANUKRUTI CHATURVEDI