HAVELLS INDIA LIMITED

MAY 2022
 A WELL STACKED FMEG
Well entrenched Brand
• Mass Premium
• National Presence
• 5 Brands addressing markets and channels

Self Reliant
• >90% in-house manufacturing
• High level of automation and integration
Widely Distributed
• Omni Channel
• ~14,000 direct dealers
• ~210,000 retailers

Widest Product Portfolio

• 21 product verticals
• ~USD 15 bn addressable market
AN EVOLVING JOURNEY

Commenced Business Acquisition of ‘Lloyd’

Got listed on Stock Acquired global business
with Switchgears and consumer durable
Exchange of ‘Sylvania’
Cables business

1958 1971 1993 2003 2007 2015 2017

• Divestment of
Foray into Electrical
‘Sylvania’
Acquired ‘Havells’ Brand Consumer Business with
• Focus on domestic
Fans and Lighting
expansion
KEY MILESTONES
➢ Commodity to Branded
➢ Single to Multi product
➢ Large scale manufacturing to drive efficiency
and quality
➢ Mass to ‘mass premium’
➢ Pan India Brand and uniform pricing
➢ Acquisition of Sylvania and pragmatic exit
➢ Lloyd Acquisition
✓ Entry into high potential Consumer Durables
✓ Aligned with ‘Deeper into Homes’
➢ Expanding consumer touch point , Omni
customer Omni Havells
DEEPER INTO HOMES

2004 2011 Onwards

Lighting Air Conditioner

• 21 Product verticals
Television
• Serving ~70%
Air Cooler
electric sockets
Fans
Water Heater
Switchgears
Refrigerator

Water Purifier
Switches Domestic Appliances

Till 2004
Washing Machine
Domestic Cable
Industrial Cable
A 10 YEAR RETROSPECT
in INR crores

FY 2012 FY 2022 CAGR

Revenues 3,616 13,889 14%
EBIDTA 459 1,758 14%
PAT 305 1,195 15%
Net Worth 1,608 5,989 14%
Cash Net of Debt 8 2,586
Dividend Payout% 31% 39%
Product Lines 13 21
Number of Towns 1,054 1,853
Head count 3,090 5,970
The above information is based on standalone financials
MOVING AHEAD
WELL BALANCED PORTFOLIO
Revenue Mix (FY22)
Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd

13% 33% 10% 22% 16%

Contribution Margin Mix (FY22)

Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd

24% 24% 15% 25% 5%

MARKET SHARE: TOP 3 ACROSS CATEGORIES
Indicative Market
Indicative Market Indicative Organized
Product Size Peers
Share Rank Penetration Level
(Rs. in crores)
Switchgears

MCB 3,000 ~18-20% Top 3 High Legrand, Schneider

Switches* 4,500 ~12-13% Top 3 Medium Panasonic (Anchor), Legrand

Cable

Flexible 17,000 ~16% Top 3 Low Finolex, Polycab

Power (LT & MV) 17,000 ~10-11% Top 3 Medium Polycab, KEI
Lighting
LED

Lighting & Fixtures 14,000 ~10-12% Top 3 Medium Philips, Wipro, Crompton

Fans 8,500 ~20% Top 3 High Crompton, Usha, Orient

ECD

Water Heaters 2,500 ~20% Top 3 Medium Racold, AO Smith, Bajaj

Other Appliances 7,000 ~10% Top 3 Medium Philips, Bajaj

* Modular plate switches

GROWTH LEVERS
Electrification- semi urban Aspirational shift for brands Formalization & Digitisaton
& rural penetration

Nuclearization of Product Expansion & Rise in disposable income

families Laddering & comfort led demand

Premium
Mass
premium
Affordable
DISTRIBUTION: BROADENING ROUTE TO MARKET

Traditional Modern Trade E-Commerce Exclusive Stores

Projects Govt. Canteen Stores Exports Rural

DISTRIBUTION: RURAL- UNTAPPED OPPORTUNITY
➢ Improved electricity penetration creating
demand
₹
➢ Informed rural customer shifting to trusted
brands
➢ Direct presence in 3,000 towns with
population range of 10K-50K
➢ Havells is the most penetrated FMEG brand in
Rural markets
Present portfolio for rural markets

Lighting Switches Switch gear Wires Fans

DISTRIBUTION: EXPORTS
Exports (in INR crs) Strengths & Opportunity

504 ➢ Brand, Manufacturing & technical capabilities

361 ➢ Wide product portfolio
230
➢ China +1 (Creating global opportunities)
➢ Hitherto Nebulous now in focus
➢ Broad basing markets, including developed
FY 18 FY 21 FY 22
countries

Outdoor & In-Shop Branding Brand Shops

Uganda Qatar Sierra Leone & Ghana

DRIVING BRAND AFFINITY

➢ National Advertising ➢ Regional Associations ➢ Digital campaigns

➢ Brand Shops
 FAST FOLLOWER TO THOUGHT LEADERSHIP: R&D
IOT Smart Homes

First Mover Trend Setter

Maturity

Develop solutions
(2015 onwards)

First Mover

Self development
from ground zero
Fast Follower (2000-2015) Trend Setter

JVs and alliances Time

(upto 1990s)
 DIGITIZATION: DRIVING BUSINESS EFFICIENCY

Distribution Retailers Digital

Management Engagement Knowledge
System (DMS) Program Centre

mKonnect: Sales Force

Automation
Dealer App Electrician
Loyalty
Program
 LLOYD
➢ Revenue of ~ INR 2200 crores
(~$ 300 mn)
➢ Among top three AC players in the
country
➢ Recently launched Washing Machine
and Refrigerator
➢ A full stack consumer appliances play
➢ Leveraging Havells strength
HIGH GROWTH POTENTIAL INDUSTRY
• Low Penetration
~65%

~33%

~12%
>5%

Colour Television Refrigerator Washing Machines Room Air Conditioner

• Each Product Group Expected To Grow At Double Digit

INR Cr

Washing Machines Refrigerator Room Air Conditioner Colour Television

10% 10% 15% 37,600 11% 45,800

15,900 33,600

9,500 18,900 24,500

16,300

2019 2025E 2019 2025E 2019 2025E 2019 2025E

% CAGR

Source: CEAMA and Frost and Sullivan

GROWTH PILLARS IN PLACE
Local Manufacturing Channel Expansion
• Sourcing Indigenized • Display at all the large retail chains
• In-house manufacturing of AC • Enhance numeric reach across India

Comprehensive CD Portfolio Brand Salience

• Celebrity engagement
• Introduction of REF now completes the • High decibel promotion
basket • Mass to mass premium
 STANDALONE FINANCIALS
Financial highlights in millions of Rupee

FY18 FY19 FY20 FY21 FY22

Net Revenue 81,385 100,677 94,292 104,279 138,885

Growth % 33%** 24%** (6%)# 11% 33%

EBIDTA % 12.9% 11.8% 11.9% 15.0% 12.7%

PBT % before exceptions 12.3% 11.4% 9.6% 13.7% 11.5%

PAT % before exceptions*

8.6% 7.8% 7.8% 10.0% 8.6%

CAPEX (incl. intangibles) 15,888 4,996 3,592 2,189 2,545

ROCE % 30% 30% 24% 29% 30%
Net Worth 37,392 41,922 43,048 51,645 59,886
Net Working Capital 3,131 7,655 6,987 15,834 13,535
Cash & Bank 15,262 12,877 11,069 19,310 29,821

* PAT for FY18 was 8.8% in both years including exceptional items
** Ex-Lloyd excise adjusted growth in FY18 and FY19 was 13% and 22% respectively
# Ex-Covid, annual growth could have been 2%
 GROWTH WITH RESPONSIBILITY
Mid-day Meal Programs Green Cover Programs Sanitation Programs Heritage Programs

60000 hot meals served 15 lakh saplings planted till 4600 bio-toilets Installed till date First of its kind restoration
everyday to students across date project that is funded
693 schools.
through CSR

Ranked 7th by DJSI in the global electrical equipment sector

21
 SUMMARY
➢ Havells taps into a vast, high priority electrical products in home construction,

improvement and convenience segment

➢ With improvement in per capital income , there will be a greater discretionary spend

towards premiumization, brand affinity and comfort

➢ Distribution penetration, its universality , product digitsation and business efficiency

through technology will be key focus

➢ Native business acumen, market connect and ethics remain core values
THANK YOU