Transcript
Organizational study on Havells India Ltd
CHAPTER-1
INTRODUCTION
1
SRM School of Management
Organizational study on Havells India Ltd
INTRODUCTION
An organization is a social arrangement which pursues collective goals, controls
its own performance, and has a boundary separating it from its environment. The word
itself is derived from the Greek word organon, itself derived from the better-known
word ergon. Organizational structure is a mainly hierarchical concept of subordination
of entities that collaborate and contribute to serve one common aim.
Organizations are a variant of clustered entities. An organization can be structured
in many different ways and styles, depending on their objectives and ambience. The
structure of an organization will determine the modes in which it operates and performs.
Havells India Ltd is an electronic equipment company which is a subsidiary and
flag ship company of QRG group, a billion dollar plus organization. QRG group is one of
the fastest growing Electrical and power distribution equipment company in the
country, manufacturing products ranging from Building Circuit Protection , Industrial and
Domestic switchgear ,Cables and Wires, Fans, CFLs, Luminaries, Bath fittings and
Modular Switches.
The business today operates in a world of relentless and real-time change as they
approach the second decade of the 21st century. From shifts in the global climate to
evolving economic and demographic trends in the local communities, they live and work
in an environment that constantly challenges them to think a new about their customers,
communities and responsibilities as a company. They embrace these changes and their
accountability as a business starts with the customers, nearly 10,000 employees,
investors, regulators, partners and communities. It ultimately extends to everyone who
shares the interest in ensuring a clean, secure energy future from national policy makers
to industry peers at home and even overseas.
The business today operates in a world of relentless and real-time change as they
approach the second decade of the 21st century. From shifts in the global climate to
evolving economic and demographic trends in the local communities, they live and work
in an environment that constantly challenges them to think a new about their customers,
communities and responsibilities as a company.
2
SRM School of Management
Organizational study on Havells India Ltd
They embrace these changes and their accountability as a business starts with the
customers, nearly 10,000 employees, investors, regulators, partners and communities. It
ultimately extends to everyone who shares the interest in ensuring a clean, secure energy
future from national policy makers to industry peers at home and even overseas.
1.1.1 OBJECTIVE OF THE STUDY
Primary Objective:-
The primary objective of the study is to have a practical knowledge about the
functioning of the organization.
Secondary Objectives:-
To understand the organization structure.
To study various functional areas of the organization
To understand the strategies used by the organization.
To understand how Maslow’s need hierarchical theory matches with practice.
To understand the duties and responsibilities of various department heads.
To identify the strengths, weakness, opportunities and threats of the organization.
1.1.2 NEED OF STUDY
The organization study has been conducted to get a practical knowledge about the
functioning of department and also to understand the organization structure. The other
important need of study was to check how Maslow’s need hierarchical theory matches
with practice.
1.1.3 DATA COLLECTION METHOD
There are broadly two types of data available to a researcher. They are:
(a) Primary data
3
SRM School of Management
Organizational study on Havells India Ltd
It refers to the first hand information collected by the researcher, specific to the
research problem. It includes using different primary data collection tools such as
personal interview using questionnaires, telephone surveys, mail surveys etc. For
the present study, primary data was collected by survey method using
questionnaires.
(b) Secondary data It is the information that already exists for another purpose. This refers to all
those data which are collected for some earlier research work. The secondary data
for this work was obtained form company profile, company magazines, website,
newspapers, internet, text books, reports and form company brochures and other
promotional materials.
1.1.4 PERIOD OF STUDY
This study has been conducted at Havells India Ltd, during the period 11May
2012 to June 30th 2012
1.1.5 SCOPE OF STUDY
The study is confined to gain some knowledge about the culture and structure of
the organization and the functions of departments of Havells India Ltd, Ernakulam.
1.1.6 LIMITATIONS
The main constraints or limitations for the study were:
Limited time available for the study.
Authorities of all the departments had a busy schedule and hence there
was no scope for detailed interviews or interaction with them.
4
SRM School of Management
Organizational study on Havells India Ltd
INDUSTRIAL PROFILE
5
SRM School of Management
Organizational study on Havells India Ltd
ELECTRICAL INDUSTRY
1.2 WORLD SCENARIO
Nature and characteristics of the Industry
The worldwide electric power industry provides a vital service to modern life. It
provides the nation with the most prevalent energy form known in history—electricity. It
advances the nation’s economic growth and productivity; promotes business development
and expansion; and provides solid employment opportunities to workers globally in
general and India in particular. It is a robust industry that contributes to the progress and
prosperity of our nation. Today the electric power industry operates in a hybrid model of
competition and regulation. The worldwide electrical and electronics industry is growing
at a fast pace which consist of manufacturers, suppliers, dealers, retailers, electricians,
electronic equipment manufacturers.
Electrical industry has come out of the regulated and proprietary industry to de-
regulated, buoyant and competitive industry. Private companies entered the market and
opened stiff competition after privatization and liberalization which have taken place in
several countries. The liberalization of the electric industry showed the expansion and
development. Electricity has been one of the most promising and challenging industries
that have helped in shaping national economy.
Electricity industry has been segmented in three basic parts like manufacturing,
supply, and transmission, though transmission and distribution continue to be controlled
in order to balance supply and demand so that transmission stability can be preserved.
Because of liberalization, at retail level, choice of electricity providers has been
expanded; as a result, customers can take advantage through switching over to a retailer
who can offer electric power at lower price.
Uses of petrochemicals are paramount in electrical industry so as to improve
electrical manufacturing processes. The petrochemical industry mainly deals with
electrical equipments such as instruments required producing and distributing electricity.
These petrochemical products are vital for producing different electrical equipments as it
helps in insulation, prevention of loss of energy, and safety.
6
SRM School of Management
Organizational study on Havells India Ltd
Electrical components are found in different types of electrical devices and a
fundamental building block. Electrical components are connected with each other as well
as number of other devices. Electrical component either with the help of solders or
printed circuit board is connected to the electronic circuit board to perform different
function.
Electrical Components Types
Active electrical component
Passive electrical component
Active electrical component has gain or directionality.
Passive electrical component is without gain or directionality.
Further these electrical components are covered in synthetic resins for mechanical
stability. This also provides environmental protection as well as insulation.
1.2.1 INDIAN SCENARIO
The Indian Electrical industry is now finding a good response for its products in
the international markets. What has brought this about? The industry has invested in
upgrading technology and improvements in quality systems so that it is able to offer
products/systems contemporaneous to what the developed countries make at much lower
price.
Electricity has become an inseparable part of our daily life. In homes, offices,
industries and hospitals they are myriad systems, equipment and sophisticated appliances
that depend on electrical energy.
Electrical equipment such as motors, transformers, switchgears etc. is used by all
sectors of the Indian economy. Some major areas where these are used are the multi-core
projects for power generation including nuclear power stations, petrochemical
complexes, chemical plants, integrated steel plants, non-ferrous metal units etc.,
7
SRM School of Management
Organizational study on Havells India Ltd
Indian electrical industry
a. Prospects of the Indian Electric Industry
Like every other industrial sector in India, the Indian Electrical Industry too is
slowly emerging from out of its “protective cover”. Since the last decade, India has
witnessed what global players have achieved and what they are capable of achieving. We
are becoming aware of competition on our turf. Many organizations in this industry are
looking overseas to develop the export markets owing to reduced demand at home.
b. Future Prospects
The domestic market in India is itself large, and one must firstly satisfy this
market with products that meet international quality standards. With increasing
globalization, every international player is now operating in India, providing goods and
services complying with international quality. The Electrical Industry in India is growing
to its full potential in the coming years and no doubt India will soon come to be
recognized for quality products and services which in turn, will bring this industry to a
position of true leadership.
1.2.2 FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY
Research and development played an important role to the increased productivity
and higher-value added electrical products.
Foreign investments accelerated growth in production and export as well.
Global industries like medical, telecommunication, etc have been cordially
supported by electrical industry.
Increase in income changed living standards of the common mass. As a result, it
increased the demand of electronics.
Asia pacific region is emerging as the most spinning place for the consumer
electronics india
8
SRM School of Management
Organizational study on Havells India Ltd
COMPANY PROFILE
9
SRM School of Management
Organizational study on Havells India Ltd
1.3 INTRODUCTION
About the company
QRG Group, a billion-dollar-plus group which ranks among the top electric
product conglomerates in the worlds and is a major domestic and global player in the
production and sales of an impressive range of electrical products. The group comprises
of 4 companies—Havells India Ltd (the flagship company with Havells and Crabtree
Brands), Standard Electricals Ltd, Havells-Sylvania and QRG Healthcare.
The flagship company, Havells is acknowledged as a manufacturer & supplier of
the widest range of low voltage electrical equipment and has become a name
synonymous with excellence and expertise in the industry.
Driven by a philosophy of dreaming big, empowering team members, a culture
based on transparency, honesty, a high focus on ethical values and entrepreneurship at
every level, the QRG Group of today is literally a dream come true-a world class
company which is one of the most admired organizations in India. With a number of
strategic alliances in place, QRG Group has shown phenomenal growth rate with the
help of various joint ventures, acquisitions, mergers and takeovers. The group, catering
to the needs of residential and industrial market globally, has 10 manufacturing units in
India.
Following its philosophy of “thinking big”, the group’s product basket offers
end-to-end electrical solutions. The company manufactures a wide range of high quality
electrical products suitable for domestic and industrial use.
QRG’s International Business Division (IBD) is a dynamic team of professionals
who are committed to fulfill the aspirations of the organization in the international
markets. IBD caters its international clientele spread over 51 countries with offices in
Dubai, China, Nigeria and distribution networks in all major countries.
Innovation is the hallmark of every vital development at QRG. New ideas,
inventions deepen scientific knowledge and give its workforce a new impetus towards
technical progress. The responsibility of providing its customers the best products and
zero defect services to enable them to be comfortable and secure in usage of electricity.
10
SRM School of Management
Organizational study on Havells India Ltd
The group comprises of 4 companies:
Havells India Limited
Havells Sylvania
CRABTREE
Standard Electricals
1.3.1 Havells India Ltd
Havells India Ltd is a billion-dollar-plus organization, and is one of the largest &
India’s fastest growing electrical and power distribution equipment manufacturer with
products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables &
Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaries for Domestic,
Commercial & Industrial applications, Modular Switches, Water Heaters and Domestic
Appliances covering the entire gamut of household, commercial and industrial electrical
needs. Havells owns some of the prestigious global brands like Crabtree, Sylvania,
Concord, Luminance, and Linotile & Standard.
With 94 branches / representative offices and over 5000 professionals in over 50
countries across the globe, the group has achieved rapid success in the past few years. Its
12 state-of-the-art manufacturing units in India located at Haridwar, Baddi, Noida,
Faridabad, Alwar, Neemrana, and 6 state-of-the-art manufacturing plants located across
Europe, Latin America & Africa churn out globally acclaimed products. Havells is a
name synonymous with excellence and expertise in the electrical industry. Its 20000
strong global distribution network is prompt to service customers.
The company has acquired a number of International certifications, like CSA,
KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore),
TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells
and its brands have emerged as the preferred choice of electrical products for discerning
individuals and industrial consumers both in India and abroad.
In an attempt to transform itself from an industrial product company to a
consumer products company, Havells launched the consumer electrical products such as
CFLs, Fans, Modular Switches Luminaries, Water Heaters and Domestic Appliances.
The company has been consistent in its brand promotion with sponsorship of Cricket
11
SRM School of Management
Organizational study on Havells India Ltd
events like T20 World Cup, India-Australia Series and IPL Season first, second, third and
fourth.
The company has also taken the initiative to reach directly to the consumers
through “Havells Galaxy” – a one stop shop for all electrical and lighting needs. Havells
has more than 100 such Galaxies across the country.
1.3.2 Some of the ‘Firsts’ from Havells
• Sets up India`s First New Generation CMH Lamp Plant at Neemrana in the year 2010
• Launched India`s 1st HPF CFL in the year 2009
• Havells launched India`s 1st BEE 5* Rated Fan in the year 2009
• First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction
of Hazardous Substances in CFLs in the year 2008
• First Company to get the ISI Certification for complete range of CFLs in the year 2006
• Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG
the only group to attain this certification in the year 2005
1.3.3 VISION
"To be a globally recognized corporation that provides best electrical & lighting
solutions, delivered by best-in-class people”
1.3.4MISSION
“To achieve our vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our associates,
customers, partners, and employees”
1.3.5 VALUES
12
SRM School of Management
Organizational study on Havells India Ltd
Customer Delight: A commitment to surpassing our customer expectations.
Leadership by example. A commitment to set standards in our business and
transactions based on mutual trust.
Integrity and Transparency: A commitment to be ethical, sincere and open in
our dealings.
Pursuit of Excellence: A commitment to strive relentlessly, to constantly
improve ourselves, our teams, our services and products so as to become the best
in class.
1.3.6 QUALITY POLICY
We are committed to maximize customer satisfaction by
Dealing in world class electric products
Helping customers in arriving at the right choice
Providing quick product deliveries
Rendering prompt after sales services
Assuring closest customer interaction
Our work life is characterized by ongoing learning and training and is monitored
by a quality management system aimed at continual improvement in all processes.
1.3.7 QUALITY CONROL
The essence of quality is closely wrapped in the way we think, plan and work. It
finds its true expression when we extend beyond ourselves to exceed our
customer’s expectations. To deliver products those are safer, faster and simply
better.
Each time, Building customer confidence through teamwork is a top priority to
provide a wide variety of products and services.
13
SRM School of Management
Organizational study on Havells India Ltd
Realizing and respecting the basic needs of customers to feel more secure, we've
committed ourselves to make our products better, safer and smarter than what he
or she is looking for. That's a passion that began 30 years ago and that's how it
continues to be even today. Our customers rely on us and it is our responsibility to
give them the very best. All our products are as per IEC standards.
QRG has a simple rule on quality. If it doesn't exceed customer expectation, it's
not quality performance.
1.3.8 CORPORATE GOVERNANCE
The QRG Group defines corporate governance strategically, which encompasses
not only what we do as a company with our profits, but also how we make them. It goes
beyond philanthropy and compliance and addresses how our company manages its
economic, social, and environmental impacts, as well as its relationships in all key
spheres of influence: the workplace, the marketplace, the supply chain, the community,
and the public policy realm.
We as a company have been in lead in offering a portfolio of eco responsible
products and services that deliver powerful, sustainable, energy-efficient solutions that
don't compromise on capacity and security. Our eco responsibility initiative also focuses
on how we run our business, and includes efforts to develop an alternative-energy
strategy, and thus reduce the environmental impact of our operations. We strive to bring
corporate responsibility to every aspect of our business. We're committed to managing a
responsible and diverse supply chain that's consistent with our high standards for
environmental and business practices.
1.39 EMPLOYEE RELATIONS
Our people are the key to our success. Their skills, knowledge, ideas and
enthusiasm drive our business. We have high-quality, diverse workforce and employees
who fulfill their potential. We have achieved this by giving them development and
advancement opportunities along with competitive compensation and benefits that
appropriately reward performance.
14
SRM School of Management
Organizational study on Havells India Ltd
We communicate widely with employees to demonstrate how their efforts
contribute to our success and to listen to their concerns. We also encourage them to align
with our vision. We are committed to open communications and a workplace where
everyone's voice is heard.
We use several channels to communicate with employees, including an internal
web portal and company website along with communication sessions with the top
management of the company. These sessions provide assessment of employee
satisfaction and are inputs for business planning, management decision-making and
company strategy development.
1.3.10 Work Culture
QRG Group is continuously applying modern management techniques such as
Kaizen to enable employees to improve their day to day functioning in small steps, one at
a time. QRG has also implemented Japanese version of 5S which stands for an “a place
for everything and everything in its place”. The company has introduced these techniques
as it firmly believes the small changes add up to large results and the only way for a
corporation to grow, is to make its people grow.
The Group is driven by qualified and experienced professionals backed by a work
force of over 8000 employees. All branches and manufacturing facilities are
computerized and networked with each other. An open door policy at all levels
encourages employees to be participative, innovative and creative. Empowering
employees helps the organization in harnessing individual talents to the fullest. Emphasis
is laid on building team spirit which helps employees to realize collective potential.
15
SRM School of Management
Organizational study on Havells India Ltd
1.3.11 MILESTONES IN QRG GROUP
1958: Commenced trading operations in Delhi.
1971: Bought HAVELLS Brand.
1976: Set up the first manufacturing plant for Rewire able Switches and
Changeover Switches at Kirti Nagar, Delhi.
1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi.
1980: Started manufacturing high quality Energy Meters at Tilak Nagar,Delhi.
1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with Geyer,
Germany.
1990: Set up a manufacturing plant at Sahibabad, UP for Changeover switches.
1996: Acquired a manufacturing plant at Alwar, Rajasthan for power cables and
wires.
1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing
customized packaged solutions.
2001: 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.
2002: Standard Electrical Company becomes a 100% Subsidiary of the company
Attained the IEC certification for Industrial switchgear and CSA certification for
all manufacturing plants.
2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of switch
gear. Set up a manufacturing plant for manufacturing of CFL at existing
manufacturing plant in Faridabad, Haryana.
2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida.
2005: Set up manufacturing plant in Haridwar, for manufacturing fans.
Awarded the KEMA certification by The Dutch Council for Accreditation,
making QRG the only group to attain this certification.
Set up of Research & Development Center in Noida H.O.
16
SRM School of Management
Organizational study on Havells India Ltd
2006: Crabtree India merged with Havells India.
Added CFL production unit in Haridwar manufacturing plant.
Expansion at Alwar manufacturing plant for increase of production control.
Expansion at Baddi manufacturing plant and set-up of an Export Oriented unit.
.2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of
6, 00,000 KVAr per month. Acquired the lighting business of a Frankfurt based
company "Sylvania", a global leader in lighting business and now the company's
turnover crosses US$ 1 Billion.
2008:First Indian CFL manufacturers to have adopted ROHS, European norms on
Restriction of Hazardous Substances in CFLs. Set up of Global Corporate office,
QRG Towers at Expressway Noida. Investment of Rs.50 Cores in Global Center
for Research and Innovation (CRI)Set up of fully automatic plant for Havells
Lafert Motors at Neemrana.
Change in Corporate brand identity.
2009: Global consolidation of CFL manufacturing plant at Neemrana for domestic
and export purposes.
Launch of India’s first HPF CFL.
Launch of India’s 1st BEE 5 Star Rated Fan.
2010: Launch of Havells brand in US and Mexico.
Inauguration of fan manufacturing unit 2 at Haridwar.
Acquired 100% result in Standard Electrical.
Set up World’s First New Generation CHM Lamp Plant at Neemrana.
Enter into Electric Water Heaters Business.
2011: Launch of new range of Control Gear Cosmic Star series.
Set up of new Industrial Switchgear Plant in Sahibabad.
Launch of Domestic Appliances.
Standard Electrical merged with Havells.
17
SRM School of Management
Organizational study on Havells India Ltd
PRODUCT PROFILE
18
SRM School of Management
Organizational study on Havells India Ltd
1.4 PRODUCTS
Products are like windows which will expose the company to the outer world.
Each company produces unique product. In the case of Havells which is an electrical and
power distribution equipment manufacturer, its products ranging from Industrial &
Domestic Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water
Heater, Havells Modular Switches, Crabtree and Standard Electrical Products.
Building Circuit Protection
Havells India Ltd has emerged as preferred choice for discerning range of individual
and industrial consumers. Havells is the largest manufacturer of MCBs in the country and
30% of the MCBs sold in UK are Havells manufactured. The products are approved by
international quality bodies such as KEMA, UL, CSA and are as per IEC standards.
Miniature Circuit Breaker (MCB)
Isolator
Changeover Switch
Residual Current Circuit Breaker (RCCB)
RCBO
Distribution Board (DB)
Indicator Light
Automatic change over with current limiter (ACCL)
Industrial Circuit Protection
Havells India Limited is leading manufacturer of low voltage Industrial products for
Three Phase and Single Phase power distribution, switching control and protection
requirements.
Panel Board system
Changeover Switch19
SRM School of Management
Organizational study on Havells India Ltd
By-pass Changeover Switch
Load Changeover Switch
Automatic Transfer Switch
Switch Disconnector
Load Changeover Switch
Automatic Transfer Switch
Switch Disconnector
Control Gear
Switch Disconnector Fuse
Fuse Switch and Switch Fuse
Chamber System
Fuse Holder
Nylon Fuse Base
Fuse Link and Fuse Base
Motors
Havells is manufacturing three phase LV Motors at Neemrara (Rajasthan).The
motors are manufactured with technical collaboration with Lafert who are now the
owners of AEG Electric Motors. The plant has a capacity to manufacture over 300000
nos. energy efficient motors per year. The complete ranges of motors are manufactured
in- house and the plant and machinery has been procured from AEG Electric Motors.
Foot Mounting
Flange Motor
Foot Cum Flange
Inverter Duty Motors with Forced Cooling
Crane Duty Motors
Brake Motors
20
SRM School of Management
Organizational study on Havells India Ltd
Capacitors
Havells capacitors are designed and manufactured using S3 technology. It
encompasses product with triple shield with differential disconnector. Advanced
technologies adopted in the capacitors offer unmatched safety and outstanding
performance under Indian conditions.
Normal Duty
Heavy Duty
Super Heavy Duty
Agriculture Duty
Motor Run Capacitors
CFL
The company feels proud and privileged to share with you one fine innovation of
making Havells CFLs more environment friendly by introducing India’s first Green CFL,
manufactured using Pill Dosing Technology(PDT). Havells is the largest exporter of
Lilliput CFL under brand name Havells Sylvania and has been awarded the best CFL in
Sweden & France.
Retrofit
Non Retrofit
Higher Range
Liliput
FPL
Modular Plate Switches
Havells Switches are aesthetically designed modular plate switched that are
engineered to deliver protection and built to last. They are an architect’s invention while
keeping an Italian flair in his mind. They are one of the best modular switches available
in India, both aesthetically and technically
21
SRM School of Management
Organizational study on Havells India Ltd
Havells Modular Switches
Crabtree Modular Switches
Lighting
Havells owns a wide range of energy efficient luminaries for domestic and
decorative applications .Lighting is important and the quality of light affects every walk
of modern life. A better understanding of light will enable you to use it more effectively.
LED Lighting
Consumer Lighting
Commercial Lighting
Down Lighter
Landscape – Bunker Lighting
Industrial Lighting
Area Lighting
Road Lighting
Specialty Lamps
Accessories
Aura Lighting
Fans
Havells entered fan business in mid-2003 and has emerged as one of the fastest
growing brand in the market. From premium fans in exquisite antique finishes to fans
specially designed for kids to dual color fans and super speed fans. Ceiling Fans
Table Fans
Wall Mounting Fans
Air Circulator Fans
Ventilating Fans
Pedestal Fans
Cables & Wires
22
SRM School of Management
Organizational study on Havells India Ltd
Set up in the year 1996, Havells Cables plant (an ISO: 9000-2000 certified unit) is
located in Alwar, in the state of Rajasthan. All cables and wires are manufactured on
most modern laser controlled automatic machines, using best raw material from primary
manufacturers ensuring perfect quality.
Power Cables – Aluminium
Control Cables – Copper
Copper Flexible Cables
Latest Innovation
A pioneer in the switch industry, Crabtree introduces its latest innovation in
wiring solutions, ‘I-sense’. An intelligent switching system equipped with an IR remote,
I-sense is a combination of sophisticated design and advanced mechanism. Crabtree does
not create, it innovates.
23
SRM School of Management
Organizational study on Havells India Ltd
MANAGEMENT PROFILE
1.5 CHAIRMANS PROFILE
The group's phenomenal success over the years has been due to Mr. Qimat Rai
Gupta's mantra of "growth through quality, innovation and market consolidation". His
focus on research and development has enabled the group to develop products for
consumers that offer great value for money. His constant emphasis on promoting energy
conservation and environmental preservation coupled with his philanthropic service to 24
SRM School of Management
Organizational study on Havells India Ltd
the economically weaker section of the society is his way of giving back in return to the
society that has helped this organization realize its true potential.
Mr. Gupta has held various responsible positions in Trade and Commercial
associations of the Industry from time to time. He has, in his past, served as the President
of Federation of All India Electrical and Trade association. Mr.Qimat Rai Gupta has been
recognized by various sections of the industry for his path breaking work in this segment.
Amongst the acknowledgments bestowed upon him, Mr.Gupta received the Self-made
Entrepreneur Award "Udyog Patra" in 1989, Distinguished Entrepreneurship Award
2004, from the PHD Chamber of Commerce and Industry in 2004, Udyog Vibhushan
from the Institute of Trade & Industrial Development, Delhi in 2005 and Udyog Ratna
from PHD Chamber of Commerce & Industry for Economic Contribution to Uttaranchal
State in 2005.
1.5.1 BOARD OF DIRECTORS
Mr. Qimat Rai Gupta (Chairman & Managing Director)
Mr. Anil Gupta (Joint Managing Director)
Mr. Surjit Gupta (Director)
Mr. Rajesh Gupta (Director Finance)
Mr. S.B.Mathur (Director)
Dr. Abid Hussain (Director)
Mr. A.P.Gandhi (Director)
Mr. Nitan Malhan (Director)
Maj.Gen.D.N. Khurana (Director)
Mr.V.K.Chopra (Director)
Company Secretary : Sanjay Johri
Auditors : M/s V.P Bansal & Co. Chartered Accountants
Bankers : Canara Bank, IDBI Bank, State Bank of India,
Corporation bank, Yes Bank
Registers and Transfer Agents : MCS Limited (Havells India Ltd)
Listed on : The National stock Exchnage of India Ltd,
25
SRM School of Management
Organizational study on Havells India Ltd
The Bombay Stock Exchange Ltd Corporate office : QRG Towers, Noida
1.5.2 CERTIFICATIONS
The Company has acquired a number of international certifications, like BASEC,
CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), and EDD (Bahrain)
for its various products to expand its reach in international arena.
1.5.3 MANAGEMENT SUMMARY
Successful turnaround of Sylvania, the international subsidiary acquired in 2007,
has shown the ability of your management of getting the things in shape. The last two
years bring challenging environment through global recession. They successfully
implemented major restructuring plans in Europe and Latin America, rounding out our
transformation into a customer focused, agile, profitable, market driven health and well
being company. They have moved their European headquarters to London so as to build
our business on the more global platform. Havells has made good progress during
financial year 2010-11. Their business model is based on the consumer and dealer
relationship which has contributed immensely to the financial performance. A structural
change is clearly visible in the Indian consumer favoring quality products with strong
brand. Keeping with the times Havells has emerged as a premium quality & diversified
product Portfolio Company with strong brand leadership and reliable distribution
channel.
1.5.4 Communication process at Havells India Ltd
Communication network of the company is same as the organizational chart. The
flow of information is from top level to the bottom level. In German Motors the
management follows the traditional hierarchal communication pattern, wherein if a
worker needs to communicate to the manager, he has to follow his hierarchal path. But at
26
SRM School of Management
Organizational study on Havells India Ltd
the same time the manager has opened his doors whereby anyone can walk in to
communicate with him
Downward Communication
Downward communication in Havells India Ltd moves from the top to the
bottom authority. Downward channels are used for passing on managerial decisions,
policies and programmers to subordinates down the line of their understanding and
implication.
Top management communicate with the lower levels through Circulars, meetings,
seminars, monthly conferences, mails.etc
Upward Communication
Upward communication in the company is when it flows from the
subordinates to top management. Upward communication is used by subordinates for
transmitting information, ideas, views and request to their superiors on relating to
their jobs, responsibilities etc.
Workers communicate with superiors through regular mails, telephones, meetings etc
Horizontal Communication
Horizontal communication at HIL is when the workers of the same position
communicate each other. It is mainly done through telephone, through mails and
direct interaction.
1.5.5 CORPORATE SOCIAL RESPONSIBILITY
27
SRM School of Management
Organizational study on Havells India Ltd
While it acquires companies and builds internally, QRG Group never loses sight
of its responsibility as a good corporate citizen. Shri Qimat Rai Gupta, believes that
serving people with meager or no means is the duty of every well-to-do person.
For instance, the company is providing mid-day meals to around 350 government
schools in Alwar district, covering 30000 students per day. Havells has a spacious
kitchen with modern kitchen equipment and utmost care is taken in terms of hygiene
while preparing and serving food. 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 50000 students in the area.
Havells runs a mobile Medical Van, equipped with a trained doctor and necessary
medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. The
company also set up free medical check-up camps. In the past also, the company has
generously contributed to the society during various national calamities like the Bihar
Flood, Tsunami and Kargil National Relief Fund etc.
Corporate Social Responsibility (CSR) at QRG portrays the deep symbiotic
relationship that the group enjoys with the communities it is engaged with. As a
responsible corporate citizen, we try to contribute for social and environmental causes on
a regular basis.
1.6 ORGANISATION STRUCTURE OF HAVELLS INDIA LTD
28
SRM School of Management
Organizational study on Havells India Ltd
29
SRM School of Management
11
DIRECTOR
OPERATIONS/ PRODUCTIONS HUMAN RESOURCE FINANCEMARKETING
PRESIDENT
VICE PRESIDENT
PRESIDENT
VICE PRESIDENT
GENERAL MANGER
Asst. GENERAL MANAGER
COMMERCIAL & ADMINISTRATION
HEAD
COMMERCIAL & ADMINISTRATION
HEADPRESIDENT
Asst. GENERAL MANGER
BRANCH MANAGER
SALES MANAGER
Asst. SALES MANGER
OFFICERS EXECUTIVE
JOINT MD
GENERAL MANAGER
EXECUTIVES
VICE PRESIDENT
12
Organizational study on Havells India Ltd
30
SRM School of Management
COMMERCIAL ADMINISTRATION
MANUFACTURING HEAD
PURCHASE HEAD
CLERICAL STAFF ENGINEERSENGINEERS
SUPERVISORSCLERICAL
STAFF
WORKERS
ACCOUNTS COMMERCIAL C&FRECEIVABLE
CLERICAL STAFFCLERICAL STAFF
SALES
Sales
PURCHASE
CREDIT CONTROL DEPARTMENT
21
Organizational study on Havells India Ltd
CHAPTER-2
FUNCTIONAL DEPARTMENTS
2.1 OPERATIONS / PRODUCTION DEPARTMENT
31
SRM School of Management
Organizational study on Havells India Ltd
OPERATING HIERARCHY
Plant Locations
Haridwar
32
SRM School of Management
V.P
GENERAL MANAGER
WORKERS
SUPERVISORS
PURCHASE HEAD
CLERICAL STAFF
COMMERCIAL ADMINISTRATIO
N HEAD
ENGINEERSENGINEERS
MANUFACTURING HEAD
CLERICAL STAFF
Organizational study on Havells India Ltd
Baddi
Noida
Faridabad
Bhiwadi
Alwar
Neemrana
Manufacturing Plants
An integral part of the Havells umbrella, Havells switchgear is a leading name in
the circuit protection devices in India. Catering to the needs of discerning customers, the
company is the largest manufacturer of MCBs in the country and amongst the top 10 in
the world.
Manufacturing units have complete in- house facilities equipped with state of the
art machines for conducting short circuit tests and mechanical tests. Manufacturing units
are ISO 9001-2000 certified & products boast of quality certifications from various
international quality bodies such as UL, CE, KEMA and VDE as per IEC standards for
taking protection to a new level.
Havells cables manufacturing plant located in Alwar, Rajasthan is a BASEC
approved cable plant is the largest cable manufacturing unit in India. At Haridwar
Havells has set up India’s largest integrated fan manufacturing facility, with production
capacity of four lakh fans per month. Motor & CFL manufacturing plant at Neemrana has
an installed capacity to produce around 20000 units per month making it the largest
motor manufacturing unit the country. 50% of the motor production in this plant is to
export to European countries finding applications in various sectors. Havells is the
second largest manufacturer of CFLs in the domestic market and the first manufacturer in
India to make ROHS compliant eco- friendly CFLs.
Production Planning & Scheduling
33
SRM School of Management
Organizational study on Havells India Ltd
In Havells production is mainly based on its monthly sales, plans and the budgets.
Havells has its own warehouses in all its plants and also in its branch offices . In Kochi,
Havells has a warehouse at Willington Island.
Products manufactured in each plant
Switchgears – Baddi (H.P)
Wire & Cables – Alwar ( Rajasthan)
Industrial Switchgear – Faridabad (Haryana)
Capacitor – Noida (U.P)
Fan – Haridwar
CFL & Motor – Neemrana
2.2 HUMAN RESOURCE DEPARTMENT
34
SRM School of Management
Organizational study on Havells India Ltd
HUMAN RESOURCE HEIRARCHY
The Human Resource department in Havells India Ltd is headed by the V.P –
Human resource. Havells considers its human resource as a valuable tool with emphasis
on enhancing their productive capacity.
Human resource covers everything from wellness, safety and benefits of
employees to their administration, motivation and communication. Nearly 8000
Professionals are employed in Havells India Ltd (HIL) in over 50 countries across the
globe. The total employee strength of HIL, kochi branch is 75.
Functions of Human Resource Department
35
SRM School of Management
V.P
GENERAL MANAGER
Asst. GENERAL MANAGERS
COMMERCIAL & ADMINISTRATION
HEAD
EXECUTIVES
Organizational study on Havells India Ltd
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation
Grievance Handling
Employee Safety
Recruitment
In Havells India Ltd. recruitment is done through internal and external sources.
The internal source of recruitment is done by the company itself in form of direct
recruitment from colleges. In this case maximum 4 candidates are selected. The external
source of recruitment is done through consultancies
Selection Process
In case of selection of candidates for top level position, the applicants have to go
through interviews with the Directors. In case the selection is for the employee of
middle level management he or she will be interviewed by the department heads.
The candidates have to do a presentation before the heads after collecting the
relevant information about the products of the company.
The qualification should be an Engineer and MBA from premier business school.
While selection, preferences are given to candidates who have work experience in
any of company which deals with electrical equipment.
If recruitment is for any managerial position more importance is given to their
background, educational qualifications, talent, communication skill, experience
etc.
Training and Development
36
SRM School of Management
Organizational study on Havells India Ltd
Once the candidates are selected, orientation and induction classes are given to
the candidates. Both On the Job and Off the Job training are given to the employees. Each
employee is given training as per the job requirement and it is given by the respected
branch itself.
Performance Appraisal
In Havells India Ltd the performance appraisal is being done on a yearly and half
yearly basis. A questionnaire is given to the employees and they have to fill it and return
it back. It’s a 3 level process and the employees are evaluated after completing all these
levels.
The employees are judged by their performance. Every department is assigned
with a target and the members in that department have to reach the target within the time
prescribed. If they achieve their targets then they are rewarded with the points and finally
these points are calculated to evaluate the performance of the employees and to provide
the incentives.
Employees Safety
A top priority of every employer should be to take the time and initiative to help
and protect their employees. If an employee becomes injured at work, the business may
suffer.
In Havells India Ltd. all employees are covered by insurance and also the
company has its mediclaim policy for its employees. Employees are provided with:
Sick Leave (15 days)
Earn Leave (15 days)
Compensation and Grievance Handling
37
SRM School of Management
Organizational study on Havells India Ltd
In HIL the matters regarding compensation will be decided by the branches itself.
Compensations are provided after the enquiry. Havells repair or replace products at their
discretion, if the products are found to be defective, solely as a result of faulty material
and or workmanship, within 10 years from the date of purchase.
2.3 FINANCE DEPARTMENT
38
SRM School of Management
Organizational study on Havells India Ltd
FINANCE HEIRARCHY
Fund management is crucial and important for the company’s growth. The
financial system of the organisation is responsible for the management of funds. A team
of senior management periodically review organisations funds requirement. The
company’s financial management has held it in good stead over the years
The finance department is headed by Administration head. Every branch is a
separate profit centre and maintains separate accounts. There are separate staffs for
accounting in each branch. The department prepares monthly performance report which
is sent to head office for analyzing the operational results. There will be a performance
review meeting every month to evaluate branch performance. The monthly report from
branches is consolidated at the head office to know the overall result of the company.
There are 3 levels of internal audit.
The branches are audited by staff from the head office.
There is internal audit by cluster accountants.
There is internal audit by external auditors.
39
SRM School of Management
COMMERCIAL & ADMINISTRATION HEAD
ACCOUNTS
COMMERCIALCREDIT CONTROL DEPT
C&F
SALES/PURCHASECLERICAL STAFFCLERICAL
STAFF
Organizational study on Havells India Ltd
The internal audit observations are sent to the branches for seeking the clarification and
for rectification.
Sources of funds
Basically long term funds are required for creating financial assets and short term
funds are needed for working capital purpose.
There are various sources of funds. The primary one of the company is share
capital. It can be in the form of owners’ funds and funds from the public. For floating the
company, the promoters of the company invests funds in share capital and that is termed
as promoters funds. For meeting further requirement of funds are collected from the
public and shares are issued in lieu of that.
Havells India has issued 41, 60,000 Equity Shares to Sea crest Investment Ltd at
an issue price of Rs 625/- per share.
The next source of fund is borrowed fund. This can be by way of working capital
borrowing from banks. Deutsche Bank has provided various credit facilities to the
company for an amount equivalent to Euro 14 million.
Significant accounting policies of Havells India Ltd.
The financial statements have been prepared under the historical cost convention as a
going concern accrual basis in accordance with the generally accepted accounting
principles and as per the companies Act 1956
Fixed assets are accounted at cost of acquisition inclusive of inward freight duties, taxes,
and incidentals expenses related to acquisition and installation of the concerned assets.
Fixed assets are further adjusted by the amount of CENVAT credit availed.
Depreciation has been provided on Straight line method at the rate prescribed under
schedule X1V in the companies’ act 1956.
Inventories are valued on the basis of moving weighted average method.
Raw materials stores, spare parts and packaging materials are valued at lower of cost or
net realizable value.
Transaction in foreign currency is recorded at the exchange rate prevailing at the date of
transaction.
40
SRM School of Management
Organizational study on Havells India Ltd
The revenue expenditure on Research and Development is charged as an expense in the
year in which it is occurred.
Current tax is determined as the amount of tax payable in respect of taxable income for
the period.
The main reports generated from the finance department are profit and loss
account and balance sheet. They are taken monthly and annually.
Havells India Ltd. installed SAP system software, which is designed to support
their complete business management. SAP is used in systems to handle invoice payment,
production resource management and financial account control. The main advantage of
using this software is that an employee in one branch can access the details of other
branches.SAP works in an ON / OFF mode. Customers can place their orders in
Customer Portal.
In HIL, Kochi branch SAP software is used for billing, cheque punching, entry of
cheque against bill, issue of credit/debit notes.
Payback period
Havells generally follows certain rules in payback period. If a dealer is new, then
he/she has to make an advance payment. But in case of existing dealers the payback
period is 45 days. If the customer pays the amount within 15 days then the company will
give 3% CD. If it is within 30 days then the CD rate is 2%. And the payment is made
after 45 days then no CD is provided.
41
SRM School of Management
Organizational study on Havells India Ltd
2.4 SALES / MARKETING DEPARTMENT
MARKETING HEIRARCHY
For every sales oriented institution sales department has its own significant
role to play. As a sales oriented company this department is very important
department in Havells India Ltd. All other departments are directly or indirectly
depend upon the entire sales team.
The sales and marketing functions of Havells India Ltd are under the control
of General Manager (Sales and Marketing).
42
SRM School of Management
V.P
Asst. GENERAL MANAGER
BRANCH MANAGER
SALES MANAGER
EXECUTIVES&OFFICERS
Asst. SALES MANAGER
Organizational study on Havells India Ltd
SALES OPERATIONS
The sales operation consists of the processes like marketing, procurement and
delivery. For marketing of a product a thorough knowledge of the market should be
known. For this purpose a market analysis should be done. Optimized method of
procurement and delivery helps in customer satisfaction, which in turn helps in their
retention. A satisfied customer is an asset to the organization, who will pass through a
process cycle of recommendation, revisit and repurchase.
Havells India Ltd. has pioneered itself in the manufacturing and exporting of
electrical products over the last 5 decades. The company has already established their
global presence across 5 continents and 50 countries with 91 branches and 8000
employees.
Deals in:
Domestic products
Industrial products
Fans
Wires
UG cables
Luminaries
CFL
Crabtree switches
Havells modular plate switches
Motors
Capacitors
New launches 2010
Geysers
43
SRM School of Management
Organizational study on Havells India Ltd
MARKETING OPERATIONS
The company does not sell their products directly to customers, but through
dealers. Major marketing activities are concentrated towards big clients such as
institutions; hospitals etc, so that sales can be made in bulk. A normal customer can
purchase the company’s product from dealers of the products. A marketing team is
formed within the company within each branch so that specific targets are made and is
seen that maximum sales is accomplished. Every marketing executive is assigned with
monthly targets, which is the amount of sales that he must acquire within a period. For
that the executives contact the dealers and new clients. The Marketing Team is headed by
the Marketing/Sales manager of each branch. The manager sets out the target sales that
should be accomplished monthly in accordance with guidelines from the head-office.
Product Mix
Industrial products
Titania Air circuit Breaker
Load line molded case circuit breaker
Load line digital molded case circuit breaker
Load bank panel board system
Power line contractor
Domestic products
Euro breaker MCB
Euro breaker Mini MCB & isolator
Euro breaker RCBO
Euro breaker Isolator
Euro breaker changeover switch
44
SRM School of Management
Organizational study on Havells India Ltd
Fans
Ceiling fans
Table fans
Wall mounting fans
Exhaust fans
Pedestal fan
Lighting
Commercial lighting
Down lighter
Consumer lighting
Area lighting
Road lighting
Industrial lighting
Land scape lighting
Lamps
Crabtree switches
Athena (dust free switches)
Ovation (designs for classic look)
Platinum (ideas for interior designers)
Sapphire (a boon for home owners)
Emerald (inspiration for architects)
SERENE (for silent moments)
Surrounds (elegance for every moment)
Stripes (classic lines, modern styles)
CASA (under floor box)
45
SRM School of Management
Organizational study on Havells India Ltd
Havells modular plate switches
CORAL
One module cover plate with one way indicator switch
Three module cover plate with 6A3 pin socket &one way switch
Four module cover plate with universal socket & one way switches
PEARLZ
One module cover plate with one way switch
Three module cover plate with universal socket & one way switches
Two module cover plate with telephone socket & TV socket
DISTRIBUTION BOARDS (DBs)
Designer DBs (suitable for surface & flush mounting)
Single pole & neutral(suitable for single phase supply)
Three pole & neutral(suitable for single phase & three phase)
Special phase(suitable for three phase incoming supply)
MCB enclosure(plug & socket provide protection to A/C)
Branches
North
o Dehradun
o Delhi
o Haryana
o Noida
o Ludhiana
o Jammu
o Jaipur
o Kanpur
o Chandigarh
46
SRM School of Management
Organizational study on Havells India Ltd
East
o Bhubaneshwar
o Guwahati
o Kolkata
o Siliguri
o Jamshedpur
o Patna
West
o Indore
o Rajkot
o Mumbai
o Nagpur
o Pune
o Rajpur
o Surat
South
o Bangalore
o Chennai
o Coimbatore
o Hyderabad
o Kochi
o Vishakapatnam
Clients
Electricians
House owners
47
SRM School of Management
Organizational study on Havells India Ltd
Builders
Architects
Institutions (schools, colleges, hospitals)
Projects (hotels, offices, complexes)
Contractors
Electrical consultants
Interior designers
Havells has its own clients not only in terms of domestic market but also in
international markets such as Singapore, Malaysia, Iran, Bangladesh, Russia, Australia,
Greece, and Srilanka.
Competitors
Legrand
ABB
Finolex
Philips
Wipro
Bajaj
Khaitan
Crompton greaves
Seimens
PRICING STRATEGY
Pricing is an important strategic issue because it is related to product positioning.
Furthermore, pricing affects other marketing mix elements such as product features,
channel decisions and promotion.
The pricing strategy used in Havells India Ltd. is Product- based pricing. HIL sets
price based upon the quality of the product, purely not on the basis of competitive
48
SRM School of Management
Organizational study on Havells India Ltd
products. Market conditions are also taken into consideration while setting the price for
the product.
PROMOTIONAL STRATEGY
The company has been promoting its brand through sponsorship of cricket events
like Champions Trophy, Champions League, IPL Season 2, IPL Season1, and T20 World
Cup. The company has also taken the initiative to reach directly to the consumers through
"Havells Galaxy" – a one stop shop for all electrical and lighting needs. This is yet
another initiative by Havells targeted at end-users, architects and Consultants, to
showcase Havells products. The Galaxy symbolizes Havells innovative leadership
position in the Electrical and Power Distribution equipment market. It serves to provide
an array of electrical appliances and consumer products, all created to adhere to the
demands of modern living. The products they offer combine the attributes of elegance,
technological advancement and convenience all in one. In order to promote the produvt
Havells India Ltd. Conduct seminars at corporate level, advertisements in televisions,
magazines, In-shop displays, dealers meeting, product catalogue.
49
SRM School of Management
Organizational study on Havells India Ltd
CHAPTER-3
OBSERVATIONAL ANALYSIS
50
SRM School of Management
Organizational study on Havells India Ltd
3.1 MASLOWS THEORY
From Maslow's theory of motivation, modern leaders and executive managers
find means of employee motivation for the purposes of employee and workforce
management.
The basis of Maslow's theory of motivation is that human beings are motivated by
unsatisfied needs, and that certain lower needs need to be satisfied before higher needs
can be addressed. Per the teachings of Abraham Maslow, there are general needs
(physiological, safety, love, and esteem) which have to be fulfilled before a person is able
to act unselfishly. These needs were dubbed "deficiency needs." While a person is
motivated to fulfill these basal desires, they continue to move toward growth, and
eventually self-actualization. The satisfaction of these needs is quite healthy. While
preventing their gratification makes us ill or act evilly.
Maslow's Hierarchy of Needs Chart
As a result, for adequate workplace motivation, it is important that leadership
understands which needs are active for individual employee motivation. In this regard,
Abraham Maslow's model indicates that basic, low-level needs such as physiological
requirements and safety must be satisfied before higher-level needs such as self-
fulfillment are pursued. As depicted in this hierarchical diagram, sometimes called
'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', when a need is satisfied it no
longer motivates and the next higher need takes its place.
51
SRM School of Management
Organizational study on Havells India Ltd
3.2 SWOT Analysis
STRENGTHS
Expertise in the field since last four decades
Technology leadership
Excellent Brand Perception
Wide Dealer Network
Excellent after sales service
Value for money
Skilled Motivated Manpower
Wide product range
WEAKNESS
Huge amount spent for promotional activities
OPPORTUNITIES
Ever increasing demand for electrical equipment products due to boom in real
estate sector
The scope for opportunities is wide ranging in that a company will try to make
better use of finance, marketing and other resource based aspects of the business
work more smoothly and efficiently.
THREATS
Highly competitive industry
Large number of reputed players in the same field
High cost of raw material
Threats include where a company has a successful product on the market or
Product concept, then the threats would be that someone else would try to copy
that concept and market it at a similar or at a lower cost.
52
SRM School of Management
Organizational study on Havells India Ltd
A slowdown of the World Economy coupled with Indian economy is quite
possible for the short term due to current global developments. Due to the strong
linkage of the manufacturing industry to the economy, such an event would
adversely impact growth in the short term for the company
3.3 Havells Strategy
Globalisation
Globalisation at Havells is a term for the horizontal and vertical integration of
manufacturing and trade on an international level. In addition to the expanding business
in India, Havells was looking to expand the geographical footprint. To remain
competitive in today's scenario of consolidation and to have sustainable development,
aggressive measures should be implemented to expand business. Starting business
internationally is as defensive as an offensive play. Changing slowly to economic
alterations in today's world could ultimately harm the business in long run.
Through international acquisition, Havells is vying for a reasonable share in the
high entry barrier markets of developed countries and is capturing buoyant growth
Prospects in the developing countries. The key strategy behind Sylvania acquisition was
to acquire a brand with global presence over last 100 years in the electrical space and to
get access to strong distribution network spread across Europe and Latin America. Also
globalization is necessitated due to competition with lowest cost producers across
geographies.
While modern trade is ushering in the 'global village', very significant national
differences remain in culture, consumer preferences, and business practices. Havells
strategy is to keep local preferences intact and to leverage on the key strength of each
cluster.
53
SRM School of Management
Organizational study on Havells India Ltd
Growth in developing economies
A seismic change is visible in the world's economic geography led by the
developing economies of Asia, Latin America and Africa. The economic crisis may have
been debilitating for the rich world but for emerging markets it has been closer to a
triumph. Emerging economies now characterize younger population, increasing number
of well-qualified population, growing middle class, elevating incomes and urbanizations.
Havells is deriving 70% of its consolidated revenue from developing economies
like India and Thailand in Asia and Latin America. Leading brand presence and strong
distribution channel will lead to the profitable growth in these regions. In addition they
would be launching new products, aggressive market strategy and developing local
leadership in order to capture robust growth available in these economies.
Driving profitability is the key focus area in their operations at developed
countries of Europe. Restructuring of European operations by reducing fixed cost along
with operational efficiencies, re-strengthening of the brand and improved relationship
with customer would contrive improved performance.
Local management
Havells has an open environment which facilitate in building trust and motivation
in the employees. Employees are as enthusiastic about the business as the management.
They try to create a culture of participative management and ignite the creative endeavor
of employees. It involves making people an interested party to the strategic decisions,
thus aligning them to the business objectives.
They cultivate entrepreneurship skills at each level. Building long lasting and
customer focused strategic partnership is important for Havells as their business depends
on the ultimate growth of these channel partners. Human values, culture, ethics and
behavior of their employees with these partners are keys to their growth. Havells aims to
be close to its customers around the world by providing them local partnership for fast
and effective solution of the business needs. As a result of the 100 year presence of
54
SRM School of Management
Organizational study on Havells India Ltd
Sylvania and over four decades of Havells we perceived as a local in the countries they
operate.
Diversity is a key feature of the Company. They promote collective decision
making at local level. In order to do so 'Strategic Business Unit' for each business
segments has been formed across all geographies. SBU is headed by a key strategic team
which takes collective decisions. Thus SBUs act as self contained planning units for
developing discrete business strategies, objectives and parameters. Because strategic
business units are more agile, they respond quickly to changing economic or market
situations at local level.
Unique business model
Havells business model is unique in India. They focus on the entire customer need
of low voltage electrical products by selling through same distribution channel. They
have aligned themselves horizontally by having large product basket. Thus their channel
management has become important and Havells enjoys paramount relationship with its
dealers for the past four decades. The strategic business model that they adopted and
implemented has certain features which place their business in a unique positioning in
India.
1. Brand building
Havells has created a strong brand in the electrical consumer products in India
which traditionally was a low involvement product category. They started investing in
brand promotional activities through large scale television advertisements in 2006 in
addition to other mode of advertisement like seminars, print media and local
advertisements. It was unheard at that time about any electrical company co-sponsoring
cricket mega events like T-20 world cup, Indian Premier League.
55
SRM School of Management
Organizational study on Havells India Ltd
2. Premium positioning
Havells brand is associated with quality at par with the products of the global
leaders. As a strategy Havells entered into the premium category in each product while
leaving 'bottom of the pyramid' strategy.
3. Common distribution channel
Havells selling pattern is quite different from its peers in India. They sell their
entire product categories through same distribution channel targeting same consumer. As
a result they are more consumer focused-channel friendly company. They enjoy
unparalleled space with both the consumer and dealers in our industry.
4. Havells Galaxies
Breaking the conventional selling methods, Havells started 'Havells Galaxies' which are
one stop shops satisfying directly the entire electrical product need of the consumer.
Under franchisee model Havells Galaxies provide additional premium sale channel to its
existing channel partners.
Growth imperative
In financial year 2010-11 Havells extended their competitive advantage, while
investing in growth. Havells fortified their leadership and culture. Havells is a market-
driven company forming strategies based on the feedback from markets to capture growth
opportunities and to accelerate change while staying fast and productive. Growth is
considered as a process to achieve better returns to stakeholders. Growth imperative at
Havells means:
1. Lead in growth markets
In 2010-11 they grew exponentially in the markets where they lead in the product
segments and generated close to Rs. 4,000 cores revenue from Latin America, India and
Thailand. With a growth of 22% in financial year 2010-11, they continue to make long
term investments to drive growth across these geographies
56
SRM School of Management
Organizational study on Havells India Ltd
2. Launch new products
They are committed to grow ahead of the competition. India, which is the key
market for their electrical consumer durables segment, new product range of Electrical
Water Heater was launched in September 2010. To leverage brand presence and
distribution strength in India the next plan is to launch small appliances. Sylvania's strong
brand and distribution channel in Europe & Latin America will be further leveraged by
launching low voltage switchgears.
3. Entering new countries
Sylvania is a 100 years old brand having visibility across five continents.
Capitalizing on the brand recall in other geographies than Europe and Latin America,
Sylvania will be re-launched in growing economies.
4. Investing in manufacturing capabilities
During the last five years Havells invested more than Rs.650 cores in India for
converting its manufacturing capabilities into world-class, state-of-the-art units. They
own largest facilities in terms of some of our product segments in India and amongst top
few in the world. As a manufacturing organization, they manufacture 85% of their
products in India and outsource only those products which are either not viable or cannot
be done.
5. 'Information Technology - a business enabler'
Havells innovative IT tools enabled the channel partners and business managers
to work ahead of competition. IT Applications has been deployed in India for basic
business functions of sales, purchase, production, planning, accounting, research,
development and designing through SAP, to implement best business practices with
maximum possible automation thereby increasing employees' efficiency & productivity.
57
SRM School of Management
Organizational study on Havells India Ltd
CHAPTER - 4
FINDINGS, SUGGETIONS & CONCLUSION
58
SRM School of Management
Organizational study on Havells India Ltd
FINDINGS
The company’s sources of funds are only from internal capital. No external funds
are
Made use of in financial operation.
Highly quality products and services its products ranging from Industrial &Domestic
Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water Heater, Havells
Modular Switches, Crabtree and Standard Electrical Product.
There is good employee relationship in the company, Human resource covers everything
from wellness, safety and benefits of employees to their administration, motivation and
communication.
Committed employees The Company has formed strategic alliances and partnerships with
many leading players operating in the end-to-end solutions in the power distribution
equipment industry. Havells has entered manufacturing alliances with several leading
electrical companies such as Electrium, Geyer AG, DZG, etc., which has assisted the
company to leverage the technical expertise and developing quality products in the
electrical products segment.
Havells has efficiently leveraged alliances to gain an entry into global markets,
developing a strong product portfolio to capture them. The company has developed
efficient partnerships to increase its market penetration in the EU. Leading the Way
through Innovation.
Havells has focused on research and development to produce novel products, at the same
time, reducing cost and upgrading the quality of its products. The company has a skilled
workforce that works on its R&D projects. It has also entered into alliances with several
companies, thereby facilitating sharing of technology. It has developed a good brand
name by introducing innovative products in the market, which has enabled it to penetrate
the market.
Good working environment they are provided with all kinds of new office requirements
to make work more employee friendly.
As the company is following Maslow’s need hierarchical theory the company is able to
satisfy their employees needs.
59
SRM School of Management
Organizational study on Havells India Ltd
No political interference in the functioning of the organization and good reputation.
SUGGESTIONS
The company has to aggressively recruit younger dynamic workforce to increase
the quality and visibility of the organization.
Increase geographical reach with more branches so that they can satisfy the
demand for their products in unreached markets.
Enhance promotional activities and increase ads to make their domestic
appliances more popular among the customers.
Conduct seminars and other programs within the organization.
Training program must be conducted for newly appointed employees.
Utilize modern technologies of organizational activities.
60
SRM School of Management
Organizational study on Havells India Ltd
CONCLUSION
Right decision at right time itself helps an organization not only to run smoothly
but also effectively. But for making right decision it is very essential to understand
certain aspects relating to the problem. The aim of this study was to develop the
understanding of the growth and standing of the firm. It helped to understand
functioning of the various departments and was able to get a good idea about the
organization structure.
The study helped to understand the policies and strategies they followed and was
able to know the strength and weakness of the company Havells India Ltd. is the
pioneers and the most reputed and trusted name in electrical distribution products. The
organization study at Havells India Ltd had helped to know the various aspects in the
organisation. The study helped to get practical knowledge on various aspects of current
industrial scenario. The study helped to know the practical knowledge in the corporate.
This study was very valuable and informative for me as a management student. In all
sense the study in this organization was interesting and educative. This study was
valuable and informative for me as a major student.
61
SRM School of Management
Organizational study on Havells India Ltd
APPENDIX
62
SRM School of Management
Organizational study on Havells India Ltd
BIBLIOGRAPHY
Books
Company profile and company magazines of havells
Webs i t e
www.Have l l s . com
www.QRG Group . com
www.a l l e l e c t r i c a lp roduc t s . com/ ind i an -e l ec t r i c a l - i ndus t ry .h tml
63
SRM School of Management
top related