Sometimes I feel our generation is so obsessed with VC funded Silicon Valley unicorns of the Online world, that we forget that there are some strong companies which have grown from literally nothing. We, at Next Big Brand – NBB continuously celebrate the second kind.
One of such companies is Havells India who have had an amazing journey and an equally inspiring story.
Today, Havells India Limited is one of the largest electrical equipment companies in India. In business since 1958, the company has products ranging from home and kitchen appliances, lighting for domestic, commercial and industrial applications, LED lighting, fans, modular switches and wiring accessories, water heaters, industrial and domestic circuit protection switchgear, industrial and domestic cables and wires, induction motors, and capacitors among others.
Early Days and Humble Beginnings
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.
It was pure destiny but while visiting Delhi on a holiday, QRG got a chance to manage his uncle’s electrical goods shop in Bhagirath Palace. Impressed by QRG’s enthusiasm, his uncle made him an equal partner in his trading business. QRG’s aspirations soon overtook his uncle’s appetite for risk, and he bought out his uncle’s interest in the business to pursue a more aggressive expansion plan. He built a successful trading business, but the thin margins were not enough to satisfy his ambition. So he acquired brand Havells and ventured into selling his own products.
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.
Lloyd has roped in Bollywood star-couple Deepika Padukone and Ranveer Singh as its brand ambassadors, replacing Amitabh Bachchan. The newly-wed couple will be promoting Lloyd’s range of consumer durables, including air conditioners, washing machines, and televisions.
The success of any company is told through numbers. And Havells’ numbers speak volumes.
The company’s Net revenue for FY17 grew to Rs 6,135 crore compared to Rs 5,378 crore in FY16, annual growth of 14 percent.
- The Electrical consumer durables business grew by 22 percent to Rs 1,378 crore in FY17 as compared to Rs 1,126 crore in FY16.
- The Lighting and fixtures business grew by 6 percent to Rs 843 crore in FY17 as against Rs 793 crore the previous year.
- The Switchgear business grew by 11 percent to Rs 1,406 crore in FY17 as against Rs 1,272 crore in FY16.
- The Cable business grew by 9 percent 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 entered the home automation, air purifier and water heaters categories.
Havells India owns brands like Havells, Lloyd, Crabtree, Standard Electric, and Promptech. The company has 23 branches and local offices with over 6,000 workers in over 50 countries
From an electrical consumer durables label in a segment dominated by male buyers, Havells is now perceived as a household brand targeting woman, too, with kitchen appliances, refrigerators, TVs and ACs.