Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. It has products ranging from Industrial and Domestic Circuit Protection Switchgears, Cables, Motors, Pumps, Solar Products, Fans, Power Capacitors, LED Lamps and Luminaries for Domestic, Commercial and Industrial applications, Modular Switches, Water Heaters, Coolers and Domestic Appliances, Personal Grooming, Air Purifier, Water Purifier, Air conditioner, Television, Washing machine and Refrigerator covering the entire range of household, commercial and industrial electrical needs.

Company owns and operates 5 brands i.e. Havells, Lloyd, Havells studio, Havells Crabtree and REO collectively addressing various markets and channels. Under this brands company offers a diversified its portfolio of products which are further categorized into 6 categories which includes, Switch Gears, Cables, Lighting and Fixtures, Electric consumer division, Lloyds, and Others.

It has omnichannel distribution channel with 18,000 direct dealers and 250,000 retailers, largest brand shop channel in the electrical industry with about 550 exclusive shops & a presence in ~300 districts. Company presently operates 14 manufacturing facilities strategically located in Alwar, Baddi, Faridabad, Haridwar, Guwhati, Ghiloth, Neemrana & Sahibabad. Company’s 90% products are manufactured in-house manufacturing with the help of High level of automation & integration.

It has the widest product portfolio with 20 product verticals catering to USD 25+ bn addressable market. Company has a very good market share across various business segments such as Water heater, Fans and MCB segment has more than 20% market share, Wires have more than 15% market share followed by Modular Switches, SDA, Lighting, Cables and AC with more than 10% market share in India. Havells also has a global presence with distributions in 70+ Countries through which it generated $100 Mn Export Revenue in Q1Fy25 and 80% of Revenue generation came from Africa, Middle East, and South Asia region.

Fundamentals:

Financial Results:

In Q2 FY25, Company reported a Net Revenue growth of 16.5% on YoY basis and its EBITDA grew by 1.7% and reached 380 crores followed by 9.4% YoY growth in PAT at Rs. 273 crores.

In H1Fy25, on segmental basis, company’s Switchgear business grew by clogged revenue of Rs. 1,127Cr. which is 5% higher compared to same period in Fy24, its Cable business’ revenue reached Rs. 3,326 Cr. growing by 13%, its lighting and fixtures business revenue reached Rs. 777 Cr. marking 25 growth, Electrical Cons. Durables business marked a revenue of Rs. 1911 Cr showcasing 19% growth followed by Lloyd with 40% growth in revenue at Rs. 2512 Cr. in first half of Fy25 compared to the H1Fy24. 

Key Updates:

1. Lloyd has joined hands with popular actor Vijay Sethupathi to strengthen its presence in Tamil Nadu. This partnership marks a significant step for Lloyd as it seeks to connect more closely with customers in the region and the new campaign focuses on Lloyd’s innovative products and its commitment to quality and customer satisfaction.
2. Havells has recently launched its latest innovation—the Studio Meditate AP400 and AP250 air purifiers. Building on the success of the previously launched Studio Meditate Air Purifier, which was praised for its SpaceTech technology, these new models introduce advanced features and enhanced performance, making them the ultimate solution for air purification.
3. Havells has also introduced its another latest innovation of first time Made in India Heat Pump Water heater which is tailored to meet the demands of residential applications, this cutting-edge technology offers up to 75% energy savings, setting new standards in water heating.
4. The company has also undertaken the landmark project of lighting Shri Ram Mandir at Shri Ram Janmabhoomi Complex in Ayodhya, Uttar Pradesh. Havells takes great pride in enriching the splendor of Shri Ram Mandir through its extraordinary lighting solutions.
5. The company recently announced the grand opening of its flagship store in the heart of Gurgaon, located on the bustling Golf Course Road, spanning across three expansive floors with a total area of 5000 sq. ft., is poised to revolutionize the way customers interact with electrical appliances and solutions.
6. The company has also inaugurated its exclusive décor lighting store ‘Havells Home Art Lights’ in Kolkata with an aim to expand the company's retail footprint in the region and offer a distinctive shopping experience for customers seeking decorative lighting solutions.
7. Company has announced its collaboration with the Small Industries Development Bank of India (SIDBI) to bolster solar projects across the country to make a significant contribution to India's renewable energy objectives and promote sustainable development. Under this collaboration, Havells India will serve as a referral partner for solar PV installation projects facilitated by SIDBI.
8. Havells has also taken a strategic step forward in the Indian electrical industry with its commercial agreement with Sweden tech start-up Blixt Tech AB by introducing revolutionary solid-state circuit breakers (SSCB) in Indian sub-continent. Havells is strengthening its position as a leading switchgear company in the region.

The Indian electrical goods and consumer durables market is expected to experience significant growth in the future with CAGR of around 11% and poised to become the world's fourth largest consumer durables market by FY27. Driven by increasing disposable income, rising urbanization, strong demand for premiumization and growing adoption of technology across rural areas; this market is anticipated to reach a size of INR 3 lakh crore by 2029. Havells already have a leadership position in India’s FMEG market and with increasing demand, launch of tech enabled and innovative products and mass premiumization across all product categories can help the company earn higher revenue flow in upcoming years. Investors can invest in this company for long term period for higher returns in upcoming years.

HET ZAVERI

info@smartinvestment.in

(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody. Investors must take advice from their financial advisors before investing in any stocks.)