BRIEF INTRODUCTION

Havells India Limited. is the largest and Indias fastest growing

electrical and power distribution equipment manufacturer with a
strong global footprint.With a total turnover exceeding billion-plus
dollars, Havells enjoy enviable market dominance across a wide
spectrum of products and services, including industrial & domestic
circuit protection switchgear, cables & wires, motors, fans, power
capacitors, CFL lamps, luminaires for domestic, commercial &
industrial applications & modular switches covering the entire gamut
of household, commercial and industrial electrical needs.Powered by
leading brands and strong service and delivery network
Havells owns some of the prestigious global brands like Crabtree,
Sylvania, Concord, Luminance, Linolite, & SLI Lighting as part of its
portfolio.
Further, its global network constitutes 91 branches and
representative offices and with over 8000 professionals in over 50
countries across the globe, the group has achieved rapid success in
the past few years.
Besides the 11 state-of-the-art manufacturing plants in India
located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar,
Neemrana, it also operates 8 state-of-the-art manufacturing plants
located across Europe, Latin America & Africa churning out globally
acclaimed products, which are synonymous with excellence and
expertise in the electrical industry.
All this is then aptly backed with its 20000 strong global
distribution network, which continuously strives to set new

benchmarks in prompt delivery and service to its customers

powering their smiles like none other electrical brand!
Recognised by world quality leaders Havells and its products and
processes have acquired a number of International quality
certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO,
SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI
(Indonesia) and EDD (Bahrain) thus complying with stringent
quality norms at even the most testing markets, worldwide.
The company has been consistent in its brand promotion with
sponsorship of Cricket events like T20 World Cup, India-Australia
Series and IPL Season 1 and 2. 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.

CSR

While it acquires companies and builds internally, Havells never loses

sight of its responsibility as a good corporate citizen. Havells
believes that serving people with meager or no means is the duty of
every well-to-do person. It consistently puts that philosophy into
action and has initiated several projects for social causes. This has
greatly increased the number of children attending school regularly
and also alleviates hunger.Social and environmental responsibility has
been at the forefront of Havells operating philosophy and as a result
the company consistently contributes to socially responsible
activities. For instance, the company is providing mid-day meal in
government schools in Alwar district, covering 15000 students per
day. Besides this 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. We
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 Havells
portrays the deep symbiotic relationship that the group enjoys with
the communities it is engaged with. As a responsible corporate
citizen, it tries to contribute for social and environmental causes on
a regular basis.

CORPORATE GOVERNANCE

Havells defines corporate governance strategically, which

encompasses not only what the company does with its profits, but
also how it makes them. It goes beyond philanthropy and compliance
and addresses how the 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.The company has been in lead
in offering a portfolio of economically responsible products and
services that deliver powerful, sustainable, energy-efficient
solutions that do not compromise on capacity and security. Its
economic responsibility initiative also focuses on how it runs its
business, and includes efforts to develop an alternative-energy
strategy, and thus reduce the environmental impact of its
operations. It strives to bring corporate responsibility to every

aspect of its business. The company is committed to managing a

responsible and diverse supply chain that's consistent with high
standards for environmental and business practices.Breaking down
the barriers that hinder innovation, is a challenge; Havell's has
readily embraced right from the start. The company's ability to
build communities and promote the exchange of ideas through
assistive technologies, participation programs, and standardization is
transforming the way people experience its products. It offers its
customers holistic energy-efficient solutions, enabling them to not
only save money and protect their capital investment, but also lower
their energy usage and protect the environment, thus fulfilling its
CSR responsibility of sustenance of depleting environmental
resources.

Corporate Governance and Ethics

An implicit sense of ethical business conduct has been the
cornerstone of the Havells way on corporate governance. On issues
ranging from customer care and business excellence to financial
propriety and more, explicit rules and regulations supplement the
traditional values on which its group companies have been shaped.
This is what it has endeavoured to do in its 50 years of its
existence. The company values of understanding, trust, integrity and
ethics have served in good stead.
Corporate governance as practiced by Havells translates into being
fair and civic-minded, fulfilling our duties to the entire spectrum of
stakeholders, and, most importantly, making integrity an article of
faith across all the operations. The group's adherence to ethical
business conduct is rooted in the vision of its Founder Mr Qimat Rai
Gupta. The company started on sound and straightforward business

principles, considering the interests of its shareholders and welfare

of its employees as the foundation of long term success.The
'leadership with trust' philosophy that has come to play such a vital
role in how the customers perceive the company, is all the more
remarkable, given the climate of unparalleled public distrust of
people in positions of authority today, both in business and politics.

EMPLOYEE RELATIONS

o The employees are an asset to Havells and the key to its

success. Their skills, knowledge, ideas and enthusiasm drive the
business.
o Havells has high-quality, diverse workforce and employees who
fulfill their potential. The company has achieved this by giving
them development and advancement opportunities along with
competitive compensation and benefits that appropriately
reward performance. Training and development is also given.
o It communicates widely with employees to demonstrate how
their efforts contribute to our success and to listen to their
concerns.
The employess are encouraged to align with the vision of the
company.
It are committed to open communications and a workplace where
everyone's voice is heard.
Havells uses 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. The company helps employees
implement company policies, meet high standards of conduct and
ensure their behaviour reflects company values and policies.
It seeks to meet leading health, safety and wellness standards to
enhance its business performance while optimizing employee health.
The facility policies are designed to continually reduce the risk of
occupational injury and illness while promoting employee health and
well-being.
Havells wishes to be a company that is known for its leadership in
corporate ethics and responsibility. A company where employees are
proud to work, and customers, partners and suppliers want to do
business with.

WORK CULTURE

Havells 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. The company has also
implemented Japanese version of 5S which stands for "a place for
everything and everything in its place". The company has introduced
these techniques as it firmly believes that small changes add up to
large results and the only way for a corporation to grow, is to make
its people grow.

Havells 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 their collective potential.

R&D

o Innovation is the hallmark of every vital development at

Havells.
o New ideas, inventions deepen scientific knowledge and give its
work force a new impetus towards technical progress.
o The company's technological strengths and its endeavour
towards continuous research & development have allowed it to
fulfill its responsibilities towards its customers.
o 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.
o Havells has recently invested 50 crores in the QRG Center for
Research and Innovation, set-up at the company's Head Office
premises in Noida, U.P.
The objective of this centre is to provide the theoretical &
experimental foundations for all segments of electrical engineering.
The centre closely cooperates with the various departments so as to
provide the best and the latest in terms of technology and design.

QUALITY CONTROL

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 customers expectations. To deliver
products those are safer, faster and simply better.Each time, every
time.
o Building customer confidence through teamwork is a top
priority for Havells so that it can provide a wide variety of
products and services.
o Realising and respecting the basic needs of customers to feel
more secure, the company has committed itself towards making
its products better, safer and smarter than what the customer
is actually looking for. That's a passion that began 30 years
ago and that's how it continues to be even today. The
customers rely on them and it is the responsibility of Havells
to give them the very best.
o All the products are as per IEC standards.
o Havells emphasizes on strengthening its customer base.
o New Market development is a top priority for the company. It
wishes to expand its customer base while retaining its existing
customers.
Havells has a simple mantra on quality. If it doesn't exceed
customer expectation, it's not quality performance.

CHANNEL DISTRIBUTION OF HAVELLS

Today, Havells and its various brands, have earned the distinction of
being the preferred choice of electrical products for discerning
individuals and industrial consumers both in India and abroad, and is
all set to keep powering the world with its state-of-the-art
innovations and energy-efficient solutions.

The essence of Havells success lies in the expertise of its fine team
of professionals, strong relationships with associates and the ability
to adapt quickly and efficiently, with the vision to always think
ahead.

Havells channel distribution network is quite uncomplicated. The

network is simple....Company--C&F--Dealer.
The mother company (Havells) is engaged in the manufacturing and
trading of various electrical products like MCBs, HRC Fuses, Wires,
Cables, Switches, Meters, Fans, Lighting Fixtures, Lighting Source,
Moulding Accessory, Modular Switches etc.
Havells wants to appoint agents for the distribution of its products
and all Carrying and Forwarding Agents who express eagerness to be
a part of the product distribution chain have to enter into a
contract with the company.
Every state has its own C&F Agent for the purpose of distributing
the companys products in the state on behalf of the company.
The C&F Agent acts as an intermediary between Havells and the
dealers who wish to sell the products. Havells provides its products
to the various agents across the different states based on the
demand for the product in the respective states and its own

discretion. The products are supplied on Stock Transfer basis after

which the stock is held onto by the agent and then dispatched to the
retailers and dealers on the basis of requirement .the agent shall
receive and dispatch the stock according to the instructions of the
company and it communicates such receipt or dispatch to the
company. The ownership rights for the goods ultimately lies with
Havells and the agent cannot create any charge or lien or
hypothecate such goods lying in its custody in any manner. Only
Havells , the company has the right t bring about changes in the
product.
The mother company has the right of checking or counting the total
stock from time to time. In case of any deficiency while counting. It
depends on the discretion of Havells whether it will adjust the
deficiency against the amounts payable to the agent or it will it
depend such deficiency at the prevailing market price of such
deficiency ffrom the agent . The agent cannot challenge this and
has to act accordingly .
The picking up, delivery or acknowledgment of materials is done in
accordance with the policy of Havells and is the responsibility of the
employees of the C& F agent . If the companys own employee does
the work even then the cost is borne by the agent . The agent
cannot temper or remove marks or numbers on the goods in its
custody .
As already stated the agent enters into an agreement with the
Havells and makes an interest free security deposit of Rs 2 Lakhs
which is refundable to the agent when the agreement expires or is
terminated. The refund is adjustable .
The taxes incurred during transportation- cost of freight , octroi ,
etc. for the despatches within the state is compensated by Havells

on the basis of actuals of production and furnishing of documentary

proof by the C & F agent on a monthly basis. Material is
despatched through contractual carriers or transporters approved
by Havells .

The functioning of the Agent is periodically audited by Auditors

recruited by Havells.
The agent provides facilities for monthly verification of the stocks
held in the presence of atleast one of its own authorised
representatives and atleast one authorised representative of
Havells , both of whom have to be present and sign reports of such
verification .
The agent is liable to pay service tax on the services rendered by
him by Havells .
The agent is entitled to receive a C& F charge .For the calculations
of C& F charge the net sale proceeds includes the value of the
product as stated in the invoice excludind excise duty , local sales
Tax, government levies , sales returns , rebates , turnover discounts
, incentive schemes etc.
The company provides godown space to the agent for storage. The
godown is rented or owned by Havells.
C&F Agent maintains the godown and makes sure that all conditions
are favourable for storing goods without hampering or damaging the
quality .
The agent only stores the goods provided by Havells .

The agent bears all expenses involving connectivity and incidental

charges of the business.

After the termination of the agreement , or at exclusive discretion

of Havells the agent is entitled to return all the goods under his
control to the company in proper marketable condition . If he fails
to do so then he has to compensate for the deficiency .
The C&F agent receives defective materials from the dealers and
ensures proper stacking and identification