Which Havells Business strategies made them successful?
The story of Havells is the most inspiring one in the Indian business story! How it made its stock price shot up 70,490% going from just 1.53Rs to 1082Rs in 2022.
In this blog, we will tell you about how Havells became a well-known brand, Which Havells Business strategies made them successful!
The Havells India Limited is an Indian Fast Moving Electrical Goods (FMEG) Company that has a top-notch quality product offering, a strong distribution network, and a strong global presence.
|Founder||Qimat Rai Gupta|
|Founded||1958; 64 years ago|
|Headquarters||Noida, Uttar Pradesh|
|Chairman & MD||Anil Rai Gupta|
|Total equity||₹4,248crorese (US$560 million) (2020)|
|Number of employees||5,781 (2020)|
|Products||Fast Moving Electrical Goods|
|Divisions||LV MotorsHome applicationsKitchen AppliancesLightingConsumer and Industrial SwitchgearCables and WiresElectrical equipment|
Havells India Limited is the world’s largest manufacturer of Fast Moving Electrical Goods (FMEG) for industrial and consumer use. The Company adheres to the Make in India initiative and maintains an extensive distribution network throughout India and abroad.
Approximately 90% of the company’s products are made in-house. It has an extremely strong global presence across 50 countries with factories in China, Europe, Africa, and Latin America in addition to 7 manufacturing sites in India.
With one of the largest distribution networks in the country. Havells reach all corners of India and the world with an extensive network of distributors. In India alone, Havells has a presence in over one lac retail outlets, which are serviced by the Havells distribution network.
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In how many states does Havells manufacturing plants are set up?
Havell’s domestic manufacturing plants are situated in Delhi NCR, Alwar, Baddi, Faridabad, Haridwar, Neemrana, and Sahibabad.
History of Havell’s
Havells India Ltd was created formally as Havell’s Private Limited in August 1983 and then became a public company in March 1992. Havells India began producing miniature circuit breakers and distribution boards in 1984.
Later, with cooperation from Christian Geyer of Germany, small circuit-breakers were manufactured in India. In the year 1991-92, the company expanded its facilities to manufacture plastic distribution boards (PDBs) and earth-leakage circuit-breakers (ELCBs).
In 1996, Havells entered into a technical partnership with Schiele Industriewerke Germany to manufacture ELCBs. They subsequently purchased an existing manufacturing plant in Alwar, Rajasthan that belonged to a unit of Rajasthan State Industrial Development & Investment Corporation, to manufacture low tension cables.
How did Havells become successful?
Qimat Rai Gupta (QRG) was working furiously on a set of permutations and combinations in a nondescript corner of Delhi’s bustling Bhagirath Palace in 1971.
The calculations involved weren’t for purchasing next-generation switchboards, light bulbs, or bundles of cable.
However, QRG’s ambition and vision were soaring above the mess of wires that hung low in the alleyways of old Delhi. He had spent a decade in the electrical goods market and knew the nuances of the industry.
As soon as QRG got wind of an opportunity to acquire switchgear manufacturing brand “Havells” from Haveli Ram Gandhi in 1971, it grabbed it with both hands. It was through this acquisition that Havells as a brand was born.
The company discovered that the acquisition of the Havells brand was an easier part of their overall plan. They now needed to invest significantly more to set up a manufacturing facility.
As time progressed, ‘Havells’ garnered a reputation for reliability in the Indian market as a well-known brand name in the electrical trade circles of Delhi.
It was in Kirti Nagar in Delhi in 1976 that a plant for rewireable and changeover switches was established. With just a few players in the organized market, the competition was relatively low.
In response to this huge market potential, the organization began manufacturing rewireable switches at the beginning and later added distribution boxes. Our production emphasized quality and innovation to meet the Indian market’s needs.
Following a positive consumer response, the company expanded its product category and strengthened its distribution network nationwide.
Strategies that made Havells a renowned brand
Havells Strategy can be explained below:-
Among the leading fast-moving electrical goods companies in India, Havells is known for its wide product portfolio, which is categorized into two categories:
• Consumer products: Products sold by Havells are suitable for B2C (Business to Consumer) customers. Fans, Lighting (consumer, CFL, LED lights), appliances (cooking, brewing, garment care appliances), switches, switchgear, water heaters, air purifiers, flexible cables, air coolers, pumps are some of the products they offer.
• Industrial products: Listed here are some of the products sold by the company in the B2B (Business to Business) market. The company sells heavy-duty fans (air circulators, exhaust fans), professional lighting (LED fixtures, street lighting, etc. ), reactive power solutions (LV PFC capacitors, agricultural duty capacitors etc. ), power cables (HT power cables, LT power cables etc. ), switch gears, and motors.
Since 2015, Havells will target the ‘Integrated Automation and Control Solutions segment, which focuses on products that enhance lifestyles. Via technology, Havells will introduce new Lifestyle products like Air fryers, Air purifiers, and Home automation.
Due to fierce competition from other companies such as Phillips, Bajaj Electrical, Anchor, and others, Havells India uses a competitive pricing strategy.
Havells has always focused on providing quality products to its customers even though some of the products may cost more, but all of the Havells items are priced similarly to those of its competitors. Also, as part of its Make in India program, Havells builds products within India such as Automatic Changeover with Current Limiter (ACCL) and MCB manufactured in India.
3.Promotion & Advertising Strategy:-
The company uses social media to promote its campaigns such as ‘Bil Chota did bad, ‘Respect for women,’ etc. This has positioned Havells as a premium brand in consumers’ minds, presenting Havells as a company that achieves goals.
4.Place & Distribution Strategy:-
Havells India has a vast distribution network covering more than 1 lakh retail outlets, and globally it has a network of 20000 distribution outlets making its distribution strategy the key differentiator among its competitors. This implies that the place strategy in Havells’ marketing mix largely depends on distribution and retailers in different regions.
In how many countries is Havells spread?
As of 2016, it has 11 manufacturing plants in India, located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and Bengaluru. It has 23 branches / representative offices with over 6,000 employees in over 50 countries, including India’s first Lloyd’s exclusive outlet.
Who is the founder of Havells?
The founder of Havells is Qimat Rai Gupta
How many branches and workers does Havells have?
The company has 23 branches / representative offices with over 6,000 workers in over 50 countries.
Where is the headquarters of Havells?
The headquarters of Havells is in Noida, Uttar Pradesh.
Which brands does Havells own?
Havells owns some of the most prestigious brands like Havells, Lloyd, Crabtree, Standard and Reo.