Havells India: On A Success Streak
To understand a company like Havells India, it is important to understand the brand’s humble beginnings and its legacy. Qimat Rai Gupta or QRG, founder of Havells, started his journey in an electrical shop in Old Delhi. QRG’s greatest skill was in man-management, writes his son Anil Rai Gupta in the book Havells: The Untold Story of Qimat Rai Gupta. “QRG would tolerate no compromises. The products we made had to be the best.” And like the proverbial apple that doesn’t fall too far from the tree, Anil Rai Gupta too has continued the legacy of delivering quality products.
Commitment to quality, innovation, customer satisfaction and ethical business practices have always remained the hallmark of this electrical equipment manufacturer. And it is the same pursuit of quality that has placed the brand in the 11th place in the BW Businessworld’s Most Respected Company Survey 2017.
Like several other top companies in the MRC list, Havells India too gained the winning streak by constantly expanding existing product categories. For example, the Noida-headquartered Havells India has entered into product categories such as water heaters, small domestic appliances and personal grooming products despite the presence of well-entrenched competitors.
The company has also undertaken technology-based product extensions in new categories such as LED lighting and home automation. As part of its strategy to enter new segments to grow the business, Havells has taken the acquisition route when needed to tap into opportunities that offer access to products with sizeable potential. The acquisition of Lloyd allowed the company to foray into the $15-billion consumer durables industry. Havells also divested 80 per cent stake in Sylvania to Shanghai Feilo Acoustics.
Buoyed by the success of conventional modular switches, Reo, targeting rural India, and wires and fans brand Standard, targeting the urban youth, Havells now expects the next stage of growth to be powered by technology driven products and has even launched few IoT-based products. “Havells has introduced intelligent products which are far superior in terms of technology and user-friendliness. These products have been launched to provide smarter solutions to consumers,” says Anil Rai Gupta, CMD, Havells India.
The success of any company is told through numbers. And Havells’ numbers speak volumes. The company’s net revenue for FY17 grew by 14 per cent to Rs 6,135 crore compared to Rs 5,378 crore in FY16. The electrical consumer durables business grew by 22 per cent to Rs 1,378 crore in FY17 as compared to Rs 1,126 crore in FY16. The lighting and fixtures business grew by 6 per cent to Rs 843 crore in FY17 as against Rs 793 crore the previous year. While the switchgear business grew by 11 per cent to Rs 1,406 crore in FY17 as against Rs 1,272 crore in FY16, the cable business grew by 9 per cent to Rs 2,379 crore in FY17 as against Rs 2,187 crore in FY16.
The company has recently forayed into personal grooming space by launching an array of high-quality personal care products, and also entered the home automation, air purifier and water heaters categories.
As Anil Rai Gupta writes in the book, “QRG was a dreamer and a doer”. And the success of Havells India reflects in the legacy of a trader who started off by running Guptajee & Co., shop number 1831, Bhagirath Palace in Old Delhi.
