Introduction

Havells India Limited

vision
"To be a globally recognized corporation that provides best electrical
& lighting solutions, delivered by best-in-class people."
Mission
To achieve our vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our
associates, customers, partners, and employees
Values

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.

Havells India Limited is a $1.4 Billion leading Fast Moving Electrical

Goods (FMEG) Company with a strong global footprint.
Havells enjoys enviable market dominance across a wide spectrum
of products, including
Havells Product portfolio
Industrial & Domestic Circuit Protection Devices,
Cables & Wires,
Motors,
Pumps,

 Fans,
Modular Switches,
Home Appliances,
Electric Water Heaters,
Power Capacitors,
CFL Lamps,
Luminaires for Domestic,
Commercial and industrial Applications
In 2007 Havells acquired Sylvania and registering itself amongst top
4 lighting companies in the world.
Branches

91

Professionals

6500

Representative offices

50 countries

Manufacturing plants

11

Brands under Havells

Havells
Crabtree
Sylvania
Concord
Luminance and Standard

Havells Galaxy Showrooms

250+

Havells connect

The first FMCG to offer door step service

International
certifications

quality BASEC, CSA, KEMA, CB, CE, ASTA, CPA,

SEMKO,
SIRIUM
(Malaysia),
SPRING
(Singapore), TSE (Turkey), SNI (Indonesia)
and EDD (Bahrain)

CSR activities

Mid day meal for 50000 students

contributed to the society during
various national calamities like the
Bihar Flood, Tsunami and Kargil
National Relief Fund etc.

Havells success lies in the expertise of its fine team of professionals,

strong relationships with associates and the ability to adapt quickly
and efficiently, coupled with the vision to always think ahead.
Management values: Simplicity, transparency, empowerment.
Brand: Trust, multiplicity, scalability.
Distribution: Affinity, product leverage, alignment.
Manufacturing: Quality consistency, brand credibility.
Innovation: In whatever we do, not just products.

Havells Distribution network

Havells

B2C

B2B
Branch
office
Branch
Sales
people

Haveels
Galaxy

Distibutors

Individual
&
househol
d
customer
s
commercial
enterprises

Goverment
customers

institutio
custome

Havells Clients :
Commercial enterprises
Bharti Airtel Limited, Ansal, DLF Limited, Eros Group, ICICI
Prudential, Idea, Infosys, LT, Maha Genco, Parsvnath, Reliance
Telecom, Reliance Industries Limited, TATA Consultancy Services,
Unitech, Vodafone,W.B. Power Corporation, Cafe Coffee Day,
Apgenco, , Chandigarh Police, Concor, DELPHI, AREVA, Avon Cranes
Ltd, Canara Bank, Eicher Tractor Ltd, Flex Industries Ltd, Ashok
Leyland Ltd, Reliance Energy Ltd, H.P.C.L, HCl, The Hindu, E.P.D.P.
Housing Society, , Highway Cycle Ltd. (Hero Group), Hindustan Lever
Ltd, I.C.F, Indian Institute of Technology, Indian Oil Corporation,

Integral Coach Factory, Kirloskar Brothers Ltd, Mahindra & Mahindra

Ltd, Raj Industries, , Maheshwari Electrical Mfrs, , M.E.S. Pvt. Ltd.
Government Buyers
Indian Railways, Mumbai Municipal, DDA, Air India, Nuclear Power
Corpn. Ltd, Sail,Bharat Heavy Electricals Ltd, BSNL, , BRP, BPTP,
North Eastern Railways, Gas Authority of India, NTPC, Bharat
Aluminium Co, Australia Government, Vizag Steel Plant, BMC, Delhi
Metro Rail Corporation, Bharat Coking Coal, , Maharashtra State
Electricity Board, Northern Coalfields Ltd.
Institutional Buyers
Apollo Cancer Hospital, Nest Foundation.
Havells Sales strategies :
For any business to increase their sales companies need to follow
four strategies

Market penetration strategies

Market development Strategies
Product development strategies
Diversification

Market penetration strategies:

Product is already in the market
we can make it grow by following three approaches
1. Encourage the existing customers to buy more
2. Attracting competitors customers to buy our product
3. convince non using customers to use our product
Market development strategy:
Existing product into a new market
We need to follow three approaches
1. Expand distribution channels
2. Sell in new locations

3. Identify the potential users

Product development strategy:
New product into current market
1. Develop new features
2. Develop different quality levels
3. Improve the technology
Diversification
New product into new market
1. Concentric Diversification Strategy: new products - existing
technology - new segments
2. Conglomerate Diversification Strategy: new products - new
markets.
3. Horizontal Diversification Strategy: new products - new
technology - old customers.
Havells market penetration
The above mentioned three approaches can be done by
promotional strategies .
Promotional mix is one of the Marketing mix and promotional
mix consists of
Sales promotions
Advertisement
Personal selling
Public relations
Sales promotions
In B2B companies do trade promotions in order to motivate
customers to buy their products.
Trade promotions
Trade allowances: short term incentive offered to induce a
retailer to stock up on a product.

 Dealer loader: An incentive given to induce a retailer to

purchase and display a product.
Trade contest: A contest to reward retailers that sell the most
product.
Point-of-purchase displays: Extra sales tools given to retailers to
boost sales.
Training programs: dealer employees are trained in selling the
product.
Push money: also known as "spiffs". An extra commission paid
to retail employees to push products. Ex: Retailers take help of
local electricians to suggest havells brand.

Trade discounts (also called functional discounts): These are

payments to distribution channel members for performing some
function.
Havells do all the above mentioned trade promotions in order make
customer to buy products.

Advertisement
Its excellent marketing campaigns helped Havells to position
itself as a the electrical equipment brand in the customer top of
mind for high brand recall.
Some of the marketing campaigns are
Shock laga shock laga- Havells switches
Wires that dont catch fire - Havells wires
save electricity bijili baba Havells lightings
Havells fans are forever- Rajesh Khanna commercial
* These advertisements influence both B2C and B2B customers
in order to buy
Personal selling
Selling products directly to customer by having face to face
talk.
Most of the sales happens in B2B happens through personal
selling. Because in this customers are very high net worth
individuals .personal selling helps companies to make clear
understating of the massage of the company about their
products if they didnt understand through advertisement.
In havells B2B the customers are Industries, government,
institutions, retailers. Where they buy havells products in bulk
so their demand is high comparing to the individual consumer
so in order to compete with other players in the market and to
provide the customer loyalty to get the deal from these
customers companies sales force need to knock the customer
door. Sales force need to understand the customer need to
satisfy the customer with havells products. It helps sales people
as well as to company to maintain good repo with customer in
order to retain customers for future sales. So that they will buy
more. Through this they can have a clear cut negotiations on
discounts, offers, loyalty benefits, depending on their
requirement and potential of the customer for the future
requirement.
Government customers buy as per the bidding or quotations so
here sales force need to design need to understand the
competitors in order to show the POD. Personal selling helps a
lot to get orders from these customers by having proper

relationships with Government procurement department

employees.
Public relationships
A PR specialist communicates with the target audience directly
or indirectly through media with an aim to create and maintain
a positive image and create a strong relationship with the
audience.
Havells has promoted its brand through sponsorship
of cricket events like Champions Trophy, Champions League, IPL
Season 2, IPL Season1, T20 World Cup.
With this sponsorship company able to get huge publicity and
may increase awareness about the brand in B2C and B2B
Markets.
In B2B marketing companies have lot of scope for publicity and
brand awareness for their products through sponsoring for the
corporate events. Where their target segments customers will
be part of the events.
Market development strategy:

MCB -miniature circuit breaker, RCCB-Residual current circuit breaker, CFL- compact
fluorescent lamp

From the above BCG matrix

Star
Switch gear(MCB,RCCB )High growth and high market share

Name

Last Price

Market Cap.

Sales
Turnover

Net Profit

Total Assets

(Rs. cr.)

Havells India

266.00

16,614.03

5,238.69

464.94

2,417.52

Crompton Greave

179.45

11,246.96

7,837.02

731.14

4,665.39

Techno Electric

534.60

3,052.10

689.12

84.67

830.59

Igarashi Motors

660.85

2,022.76

385.08

48.95

292.65

1,269.00

1,287.16

630.73

38.62

325.06

Honda Siel

In switch gear Business havells is in second position and

Crompton is in Frist place in terms of Sales Turn over and comes
to net profit
ROA= Net income/ Total assets
Havells ROA = 464.94/2417=0.192321
Crompton ROA=731.14/4665.39=0.1567
Havells is able to leverage its resources better than its
competitors
We can also assume that the economic value provided by the
company Is more comparing to its competitors so it is a

competitive advantage for the company.From this we can

understand why havells switchgear is a star.

In above graphs we can observe that Havells market share is

high comapring to other companies in overall swtich gear
business . Domestic swtich gear got the highest market share
and industrial swtichgear got 23%.industrial swtichgears are
not performing as domestich swtichgears .So B2B sales for
swtich gear is not so high. B2B salesforce should have to
change their stratagies for industrial swtichgears to show some
diffrenciation from market leaders like L&T and siemens etc .
Cash cow
Lighting & fixtures (CFL,Luminaires)-low growth high market
share
Major players in this product segment

1.

Philips- is a market leader worldwide in this segment because

of its product differentiation and it is also won the L-Prize
competition and got a huge $10 million cash prize for
manufacturing a high-efficiency, durable replacement for the
standard 60-W incandescent light bulb. It has been operating its
business in India more than 75 years .

2.

Osram
It is a German company and it has been operating its business in
India more than 20 years. They produce products which are not
only energy-efficient but also environment-friendly.

3.

Havells
Havells enterd in LED(Light-Emitting-Diodes) business in 2010. In
the year 2007, Havells created history by acquiring the worldrenowned lighting company named Sylvania and by doing so the
company registered itself amongst top five lighting companies in the
world.
If we see the competition in between these companies its so high
.havells facing huge competition in this market. And almost every
company has same POD in its products that is Energy efficient but
Philips technology is got some what Good differentiation. But still
these have competitive parity in its market. So havells has to work a
lot to show some POD in its products to develop its market its
market.
IN B2B so many Corporates started use these products so expanding
its channel is very important to increase its coverage to grab the
sales.

In the above graph we can observe that luminaries have 57%

and CFLS have 43%. If we compare with competitors In CFLS
Philips and surya roshini is in top and Havells in third position
with 8% in overall market share. Luminaires market share is
10% in overall market share and stood in 4th position in the
market. But Philips is market leader in this business with its
technology leadership. so to compete with Philips havells has to
show some product differentiation which is very cost to do , so
they can show difference through service or with sales
promotions in B2B segments where they attract competitors
customers as well as new users.

Dog
Electrical consumer durables (Fans)- low growth low market
share

From the above graph we can understand its fans market share
is 18% but still havells electrical consumer durables market
share is low comparing to its other products growth also very
less due to competitors in this segment .competitors are many
and no much product differentiations so that havells facing a
competitive parity .if we also observe the postion in the market
is 2nd but Bajaj got highest market share in the market after
Crompton .Bajaj sells its fans in low price so that they are
capturing the market share , so havells have to work on its
pricing strategy to capture more market share .

Question mark
Cables & wires-high growth low market share

Polycab Wires Pvt. Ltd.

Safe Raho. Save Karo.
Distributors: 250
Dealers: 1,250
Retailers: 5,000
Exports: 20%

Sterlite Technologies Ltd.

Connecting Every Home on the Planet
33% of the revenues from exports

Finolex Cables Ltd.

Behtar Electrikal Ke Liye
Distributors-4,000
dealers and depots-20,000 at 26 locations
exports- 5%

Havells India Ltd.

Rewriting Rules. Redefining Experiences.
Distribution network- 5,800 and
Havells Galaxy Outlets-morethan 200
We have presence in over 50 countries

RR Kabel
Wire Nahin, Bharat ki nubz hain hum
Domestic 70% & Export 30% (approx)

Revenue from Exports

Polycab Wires PVT LTD

Sterlite Technologies LTD

Havells India LTD

Rk Kabel

Finolex Cables LTD

Havells Procurement strategies:

In this sector there are lot of changes in trends of manufacturing and
product designs, quality, technology has been changing. Its a
challenge for the company in order to change its manufacturing
process according to the trends.
Based on the consumption purposes of the acquired goods and
services, procurement activities are often split into two distinct
categories. The first category being direct, production-related
procurement and the second being indirect, non-production-related
procurement.