Havells Corp Presentation 2010

An Insight to

Havells India Ltd.

Overview

Strategies

Environmental

Innovation

1971

2008

40 years of Passion

Overview

Havells-Global HQ

………. Passion Continues

40 Yrs of Passion Switchgear

Plant

1993

Joint Venture with Geyer

1984

Meter Plant

1980

First Plant

1973

Fan Plant

2004

CFL Manufacturing

2004

Joint Venture with DZG

1997

Acquisition of Cable Plant

1996

Overview

2008 – Global HQ

Motor Plant

2008

Capacitor Plant

2006

2nd Switchgear Plant

2004

Acquisition of Sylvania

2007

Global CFL Plant

2009 2010

Inauguration of 2nd Fan Unit

Entrepreneurial & Courageous Mindset.

Shri.Qimat Rai GuptaCMD,Havells India Ltd

Overview

Qimat Rai Gupta

Chairman & Managing Director

Anil Gupta

Joint Managing Director

Surjit Gupta

Director - Operations

Ameet Gupta

Director –

International Business

& Operations

Rajesh Gupta

Director - Finance

Top Management

Overview

A full-spectrum provider of professional electrical solutions worldwideAn Expanding

Global Leader

Rs 5500cr+ (U$1 Billion +)One of the world’s largest lighting and electrical product companies

Global HQ:Noida, India

Overview

E2E Solution Provider

India’s Only Electrical Co. with

10 Biz VerticalsModular Switches

IndustrialSwitchgears

DomesticSwitchgears

Fans

Lighting

Capacitors Motors

Overview

Cables

Electric WaterHeaters

Substantial Global Presence

• Presence across 5 continents and 50 countries

• 94 branches and 5,000 employees

• Leading domestic player in consumer and industrial electrical products

• Leading Indian electrical products company

• Powering lives around the world

Overview

Strong Financials & Sustained Growth

International Success

58% of revenue from international operations

50,000+ dealers & retailers globally

94 branches

Listed in BSE

Sustained Revenue Growth

2004 2005 2006 2007 2008 20090

1000

2000

3000

4000

5000

6000Net Revenue (INR Millions)

5,534

Rapid Success

One of the largest Indian electrical products

companies

Overview

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0

200

400

600

800

Closing Price

624.00

Jan’10

751.00

Broad Multinational Reach

Europe Major presence through Sylvania 5 manufacturing units Strong distribution channel

42% of consolidated revenue

Americas Presence through Sylvania 3 manufacturing units Strong distribution channel


New Target Markets: China, Asean region & Latin America


India Major presence through Havells India 11 manufacturing units Strong distribution channel

Overview

Vision To be one of the best electrical products companies in the world

In development of Energy efficient productsFocus

Innovation and investment to deliver more for lessEfficiency

Ethics, values, transparency and accountabilityGovernance

We empower our employees with real opportunitiesDeveloping Leaders

Strong partnerships with dealers is criticalDealers

Close collaborationVendors

Continuously reinventing our process and productsInnovation

We have a vibrant charitable programSocial Responsibility

A dynamic mix of professionalism and integrity Management Style

10 Success Factors

Qimat Rai GuptaChairman and Managing Director

Overview

Markets Construction and infrastructure segment Consolidation and organisation

Branding Heavy investments in our core brands

through TV ads and sponsorships

Distribution Strong focus on dealer relationships Greater distribution penetration

Manufacturing Globally benchmarked manufacturing plants for efficiency

Key Growth Drivers

Overview

Did You Know?

Havells has the Largest Integrated CFL Factory in India

#1

Havells has the MostAutomated Plant in India for MCB’s

Havells is World’s First Mfgr. of New Gen CMH lamps .

Havells is the 2nd Largest Manufacturer of Cables

Havells is the 2nd Largest Manufacturer of Modular Switches

#2

Havells is the only Electrical co. to have 10 Biz.verticals in India

Havells has the widest range of Energy efficient products

Havells is the Largest Manufacturer & Exporter of MCB’s

Havells has the LargestMotor Factory in India

Havells has the LargestIntegrated Fan factory inIndia

#1 #1

#1 #1 #1

#2

#1 #1

Overview

Did You Know?

Havells is the First Fan Brand to to get BEE 5* Certification

Havells is the Largest Advertiser in India

Havells alwar cable factory runs midday meal for 15000 children

Havells has over 50000 outlets

Havells bagged single largest ACB order of 450 nos from MSEB, India

Havells has 27 Branch offices & over 1000 salesforce

Havells was the Ist brand to Launch Energy Efficient Innova & Elite

The only brand to launch one Stop Shop Havells Galaxy

Havells acquisition of Sylvania is the Largest by an Indian electrical co

#1 #1

#1 #1

#1

#1

Overview

Havells has invested Rs 500cr in the last 5 yr in capacity expansion

Fans• Ceiling• Table, Wall,• Pedestal.• Exhaust• Industrial

Best in Class Products

Motors

CFL

• Green CFL• Lilliput• Non-Retro• FPL

Domestic Switchgear• MCB,RCCB,RCBO• Changeover• ,Isolator• Distribution Box

IndustrialSwitchgear

Cables

• Power Cables

• Flexible Cables

-Consumer-Commercial-landscape, Industrial,-Road & Area-Light Source

• ACB,MCCB• Changeover• Controlgear• Fusegear• Loadbank

• Foot cum Flange• Foot Mounted• Brake motor• Inverter Duty• Crane Duty

OverviewHavells Lighting

Best in Class Products

Capacitors

• Square• Cylindrical

Switches

• Modular Switches

Key Product Deliverables:

• Energy Efficiency• Safety• Comfort

Overview

Electric WaterHeaters

Company Values

Respect for PeopleWe value diversity in individuals and cultures

Customer CentricWe aim to build strong brands that improve our customers’ business performance

Passion to WinWe encourage our teams to be entrepreneurial to succeed

Global Strength for Local SolutionsWe leverage our global network of people, products and facilities to create local customer solutions

Open & Transparent Business CultureClarity and honesty in communications remove ambiguity and generate creativity

Overview

strategies

Key Strategic Pillars

Brand

Manufacturing , R&D

Quality

Service

1

2

3

4

Strategies

Our Brands

Strategies-Brand

World-class Brands &

Exceptional Products

Aggressive brand building initiative by patronizing cricket, high brand visibility on mass media.• Rs.75 crores in 2009-10, India’s Biggest Advertiser in Electrical Industry.

• On-ground & On-air Sponsorship of Champions League 2009

• On-air Sponsorship of Champions Trophy 2009

• 7 new TV Commercials being aired across Product Categories

• First electrical co. to enter social media space

Brand Focus

Strategies-Brand

- One Stop Shop for Havells & Crabtree Products- 63 Galaxies opened in different cities- Target to reach 100 by year end

Innovative retail initiative – Galaxy

First in the Industry to create a Galaxy concept

Strategies-Brand

- Unique Concept of Displaying Entire Havells Range in Wholesale Markets

- First two Havells World in Delhi & Mumbai

Innovative Retail initiative – Havells World

First in the Industry to create a Havells World concept

Strategies-Brand

Media Recognition • Gen Next – The Hidden Leaders – Business Today

• Among India’s Most Valuable Companies – Business Today

• Among India’s Most Investor Friendly Company – Business Today

• Among Top 20 Stocks for 2010 – Dalal Street

• Fastest Growing Electric Company – Construction World

• Havells on 43rd position among Top 1000 companies in India – Business Standard

• Havells on 55th position among Top 500 companies in India – Industry 2.0

Strategies-Brand

12 Plants 8 Locations

Manufacturing Plants -India

Baddi(2 Units)

Alwar

Neemrana Haridwar(2 Units)

Noida Saibabad

• Power Cable• Wire

• Motors• Lighting -CFL -CMI Lamps

• Domestic Switchgear• Switches

• Fans

• Capacitors • Industrial Switchgear

Strategies-Manufacturing

Noida

• Lighting - Ballasts

Faridabad

• Industrial Switchgear

6 Plants 6 Locations

Manufacturing Plants-Abroad

Germany Belgium

Costarica

U.K.

France.Paris

• Lamps• Lamps

• Concord Fixtures

• Warehouse


Columbia

France

• IC Fixtures

• Fluorescent tubes• Fixtures

• Fixtures

Manufacturing

Leadership

Technology OwnershipR&D

BrandCost

Essential Asset


- Facility Enhancement at Haridwar from 2 lac to 4 lac fans per month- Completely automated testing facility – First of its kind in the

country- Investment of 20 crores in machinery

World class Infrastructure - Fans


Unit 2

Haridwar

- Area expansion to double i.e. 90 acres- Expansion plan with investment of Rs.100 crores in current FY

World class Infrastructure - Cables


AWARDED BASEC CERTIFICATE

Alwar

World class Infrastructure - Switchgears

• Capacity enhancement by 67% with the set up of an additional unit.• Domestic Switchgear – 3 crore poles p.a. To 5 crore p.a• Electrical Wiring Accessories – 2.5 crores units p.a to 7 crores p. A.

Strategies-Manufacturing Baddi

World class Infrastructure - Motors

- Largest manufacturing facility in the country for motors- Technology & complete plant from AEG, Spain- 50% of production exported

Strategies-Manufacturing Neemrana

- Enhancing capacity- 20 lac pcs pm.to40 lac pcs pm. - Integrating Faridabad, Haridwar & UK facility into a global plant- Investment of close to 50 crores.- One of the Largest CFL plant in Asia

World-class Infrastructure - CFLs

Strategies-Manufacturing Neemrana

• Setup the most advanced low voltage power capacitor manufacturing unit at Noida , machinery from Switzerland.

World class Infrastructure - Capacitors


Noida

Faridabad

World class Infrastructure - IP (Industrial Switchgear)


• India’s No.1 MCCB manufacturer• One of the most advanced Industrial Switchgear plant

Sahibabad

World class Infrastructure - IP (Industrial Switchgear)


• India’s No.1 MCCB manufacturer• State of the art Industrial Switchgear plant

World class Infrastructure-Warehouse

- Over 200,000 sq.ft of Storage Space- Over 15,00,000 Sq ft space across India

Strategies-Manufacturing Sahibabad

• Plant R&D at Alwar, Faridabad, Baddi, Haridwar,Neemrana • Global R&D centre at Noida - Switchgear, Fans. Lighting, Cables,• 100+ Engineers

World class Infrastructure-R&D

Strategies-R&D QRG Tower

Noida

Quality

• Understand customer’s expectations

• Understand perceived quality

• Capitalise on quality

Delivering on our promises

No compromises on quality!


Service

• Product availability

• Speed of delivery

• e-business

• After sales service

Critical Differentiator

R&D

All functions must be customer oriented

Supply ChainCustomer Service

Finance

Marketing


Domestic Market

Segment Leadership Positioning

MCB # 1Wires & Cables # 2CFLs # 2Consumer Lighting # 2Commercial Lighting # 4Fans # 3Crabtree Modular Switches # 2

Competitive Positioning

environmental

Core Philosophy

Energy Efficiency is at the core of Havells Philiosophy. Today Havells has the widest range of Energy efficient products cutting across in - Lighting,- Motors,- Cables,- Fans,- Switchgears- Electric Water Heaters

80% of lighting is used in public, industrial & commercial sectors

70% of lighting uses old & inefficient technology

Source: ELC

Environmental

Havells Objectives

Reduce CO2 emissionsDevelop and manufacture energy efficient products

Improve environmental protectionReduce hazardous substances and improve waste management

Improve quality of lifeCreate sense of well-being with a superior quality of light

Offer profitable solutions to marketBetter efficiency, sustainability and longer product life

Environmental

Product Design Trends

Reducing energy consumptionProducts designed to support energy efficient schemes

Compact, energy efficient lampsReduced fixture size, longer lamp life and reduced energy consumption

Light weight electronic gearUp to 30% more efficient – compact lightweight size reduces packaging and transport cost, and more efficient to recycle

Reduction of hazardous materialsWe design and manufacture products to avoid use of hazardous chemicals such as mercury

Environmental

Innovations

SwitchgearCablesLightingCFLInnovation

• India’s First Energy Efficient Fan

• India’s First BEE 5* Rated Fan

• Largest range of Metallic finish fans

• India’s only fully integrated fan plant

Fans Water Heater

Innovation

• India’s First Green CFL• Use of Pill Dozing Technology to minimize the use of Mercury• India’s First 4U Small CFL Lamps- the lilliput• India’s first co. to follow ROHS norms voluntarily• India’s Largest exporter of CFL’s

SwitchgearCablesLightingCFLFans Water Heater

Innovation

• Launch of India’s first CFL based Spotlight “ Innova” as a Replacement for Hot Halogen MR16• Launched India’s first electronic ballast & T5 tubelight “ E-lite”• India’s first LED based commercial fixture “ Endura”• India’s first LED 4x4,2x4 Spotlight “Endura Square”• Setup World’s First New Gen.CMH lamp factory


Innovation

• Launch of Flexible cables (wires) that doesn't catch fire –FR range• Entire range of Havells cables are fire resistant• Use of 100% pure copper for best conductivity & to avoid any loss of energy in transmission.


Innovation

• India’s first ACB with “C3” technology using common height, depth & width• Precision engineering for best electrical performance


Innovation

• BEE 5 Star rated High energy efficient electric water heaters • With Penta Shied Technology to provide utmost safety


Social

- Mid-day meal scheme extended to over 15000 children.- Automated & Hygienic Kitchen- Medical Van in Delhi & its Surrounding areas

CorporateSocialResponsibility

Social

Thank You.

Havells Corp Presentation 2010

Technology

strong distribution channel

class products

havells india

air sponsorship

green cfl

major presence

consolidated revenue

world classinfrastructure