Havells

Havells India Limited

File:Havells Logo.svg
Traded as	BSE: 517354 NSE: HAVELLS
Industry	Electrical equipment
Founded	1958
Founder(s)	Qimat Rai Gupta
Headquarters	Noida, Uttar Pradesh, India
Area served	Worldwide
Key people	Anil Rai Gupta (Chairman & MD)
Products	Fast Moving Electrical Goods
Revenue	₹9,553 crore (US$1.3 billion) (2020)
Operating income	₹924 crore (US$130 million) (2020)
Net income	₹735 crore (US$100 million) (2020)
Total assets	₹7,073 crore (US$990 million) (2020)
Total equity	₹4,248 crore (US$600 million) (2020)
Number of employees	5,781 (2020)
Divisions	LV Motors Home applications Kitchen Appliances Lighting Consumer and Industrial Switchgear Cables and Wires Electrical equipment
Website	www.havells.com

Havells India Limited is an Indian electrical equipment company based in Noida. 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. Havells India owns some brands like Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptech.

The company has 23 branches / representative offices with over 6,000 workers in over 50 countries. India's first Lloyd's exclusive outlet is acquired by businessman Mr. Rajan Bansal. The store is situated in western part of New Delhi, Paschim Vihar. As of 2016, it has 11 manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and Bengaluru. In 2014, Havells was listed 125th among 1200 of India's most trusted brands according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory.

History

Establishment and early history

In 1958, Qimat Rai Gupta dropped out of school and founded an electric trading operation in the electric wholesale market of Old Delhi. With an investment of Rs.10,000, he started Havell's Industries. In 1971, Gupta bought Havells brand from Haveli Ram Gandhi, and in next five years he started the first manufacturing plant at Tilak Nagar, New Delhi of the Rewireable Switches and Changeover Switches in his Kirti Nagar Plant, near New Delhi. In next few years, Havells started to set up manufacturing of the energy metres. Later, it acquired Towers and Transformers Ltd. and turned it into a profitable manufacturing energy meters company in one year. Later, the company entered MCBs manufacturing at Badli, Delhi, in a joint venture with Geyer, Germany.

In 1974, the company started manufacturing of the Changeover Switches plant at Sahibabad, Uttar Pradesh. In 1980, they started manufacturing Control Gear Products at their Faridabad, Haryana plants. Later in the 1980s, they acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires. In that same year, they entered into a joint venture with Electrium, UK for manufacturing Dorman Smith MCCB and Crabtree modular plate switches. Acquired an electric control and switchboards at Noida for manufacturing customised packaged solutions. Introduced high-end Ferraris Meters in joint venture with DZG, Germany. Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of electronic metres—single-phase, three-phase, multi-function, tri-vectors and also acquired controlling interest in an industry major-Standard Electricals Ltd and also an acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.

Global presence

In late 1990s, Standard Electrical Company became a 100% subsidiary of the company. The company gained IEC certification for industrial switchgear and CSA certification for all manufacturing plants in 1991. Soon production started in their plant located at Baddi, Himachal Pradesh for manufacturing domestic switchgear. Setting up a manufacturing plant for manufacturing of ceiling fans at Noida, Uttar Pradesh.

In 1999, Havell's opened their first international sales office in London through their wholly owned subsidiary company Havells U.K. Ltd. In December 2004, placed 235 fully convertible debentures of Rs.1 lakh on M/s. Shine Ltd., Mauritius and the debenture were converted in June 2006. Attained the CE certificate for CFLs. In March 2005, Havells Started the manufacturing of the Electric Fans at its plant located near Haridwar, Uttarakhand and got an award for the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification in India. The company started their first R&D Centre in Noida. In November 2005, Crabtree India merged with Havells India adding a CFL production unit in Haridwar manufacturing plant.

Expansion at Alwar manufacturing plant for an increase of production capacity and another expansion at the Baddi manufacturing plant and set-up of an Export Oriented Unit started in that same year. In 2006, it became one of India's first companies to get the ISI mark Certification from the Bureau of Indian Standards for a complete range of CFLs. The company is setting up new fully automatic water heater manufacturing plant in Neemrana, Rajasthan.

Expansion era

In 2007, Havells' creation of a capacitor manufacturing plant in Noida, Uttar Pradesh with the capacity of 6,00,000 KVAr per month was completed. Later it acquired the lighting business of a Frankfurt based company Sylvania, a global leader in the lighting business and now for the first time in its history, the company's turnover exceeded US$1 billion. By 2007, Havell's were well known for its electrical switches, energy meters and miniature circuit breakers (MCBs). In March 2007, Havells acquired SLI Sylvania of Netherlands for $300 million, making it the fourth largest lighting business in the world, worth over a billion USD. This was, at that time, the biggest overseas takeover by an Indian electrical equipment manufacturer. This takeover helped to give the Havells brand access to over 20,000 dealers across Latin America, Europe, Asia and Africa. The combined Havells-Sylvania generated over a $1 billion in revenue with more than 60% coming from international sales.

Due to past mergers, Havells’ portfolio includes many well-known brands like Crabtree, Sylvania, Concord, Luminance, Linolite & SLI Lighting. In 2008, it became one of the first Indian CFL manufacturers to have adopted RoHS, European norms on the restriction of hazardous substances in CFLs. In October 2008, Havell's moved to its new corporate headquarters, QRG Towers located in Noida. With an investment of Rs. 50 crore in Global Centre for Research and Innovation (CRI) construction of a fully automatic plant for Havells Lafert Motors at Neemrana also started in that same year. In 2010, it acquired 100% interest in Standard Electricals to set up the world's first new generation CMH lamp plant at Neemrana. In 2012, Indian actor Rajesh Khanna endorsed Havells Fan TVC titled Havells Fans Forever.

In September 2013, Havells launched domestic pumps for the Indian market. Initially, the company plans to launch the monoblock pumps and expand the product range gradually. Monoblock pumps of Havells are being manufactured at Neemrana Motor factory using the production capacity of the unit.

Sylvania Divestment

In December 2015, Havells India Ltd. sold 80% stake in Sylvania Malta, and Havells Exim Hong Kong to Shanghai Feilo Acoustics for Rs 1,100 crore. Havells had invested Rs 980 crore in both the subsidiaries.

Products

• Building Circuit Protection
• Miniature Circuit Breaker
• Industrial Circuit Protection
• Motors
• Professional and Consumer Lighting
• LED Lights and Bulbs
• Small Domestic Appliances
• Air Purifiers
• Air Coolers
• Capacitors
• Ceiling Fans, Table Fans, Pedestal Fans, Wall Fans, Exhaust Fans
• Water Heaters
• Water Purifiers
• Domestic Water Pumps
• Electrical Wire Accessories
• Personal Grooming Equipment's

Stock market

Market Capital of Havells is 38,158 Crores (as of 8 August 2020). The shares of Havells are listed in Bombay Stock Exchange in 'A' category and is included in S&P BSE 200 Group. Promoters hold a 61% stake in the company followed by 23% FIIs. During 2011–14, the stock gave more than 300% return following its exceptional growth. Havells' major peers includes Crompton Greaves and Orient Electric.

Marketing

The company has promoted its brand through sponsorship of cricket events like Champions Trophy, Champions League, IPL Season 2, IPL Season 1, T20 World Cup. The company also reaches consumers directly, through "Havells Galaxy" – a shop for electrical and lighting needs.

Acquisitions

In 1983, it bought the loss-making Delhi-based Towers and Transformers Ltd and turned it around in a year. Between 1997 and 2001, Havells also bought ECS, Duke Arnics Electronics, Standard Electricals and Crabtree India. There was a 50:50 joint venture between Havells and the UK-based Crabtree, and Havells later acquired Crabtree's stake in the JV. The latest acquisition of Lloyd Electricals has marked its entry in new segments of consumer electronics.

Social initiatives

Havells provides mid day meal for school children in Alwar district, covering 50,000 students per day. This has greatly increased the number of children attending school regularly and also alleviates hunger. Besides this the company has acquired land for constructing a larger kitchen with all the modern facilities to serve freshly cooked food to 50,000 students in the area.

The group company, QRG Healthcare runs a 140-bed hospital in Faridabad. In the past, the company has generously contributed to the society during various natural calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund, etc. Havells runs a mobile Medical Van, equipped with a trained doctor and necessary medicines in the rural areas of Delhi and NCR for the very poor and needy villagers. The company also set up free medical check-up camps.