HAVELLS
INDIA
LIMITED
March 2024
1
HAVELLS TRANSCENDS 2 DEEP POOLS OF HIGH GROWTH
Electricals Electronics
Market Size In Rs Cr (Annual) Market Size In Rs Cr (Annual)
2,00,000 1,75,000
1,25,000
1,00,000
Today In 5Y Today In 5Y
Source: Internal & industry estimates
2
A WELL STACKED FMEG
Well entrenched Brand
• Mass Premium
• National Presence
• 6 Brands addressing markets and channels
Self Reliant
• >90% in-house manufacturing
• High level of automation & integration
Widely Distributed
• Omni Channel
• ~17,000 direct dealers
• ~220,000 retailers
Widest Product Portfolio
• 20 product verticals
• USD 25+ bn addressable market
3
AN EVOLVING JOURNEY
Acquisition of
Got listed on Stock ‘Lloyd’ consumer
Commenced Exchange durable business
business with Acquired global First manufacturing
Switchgears and business of foray into South India
Cables ‘Sylvania’ with 2 new plants
1958 1971 1993 2003 2007 2015 2017 2019 2023
Acquired ‘Havells’ Divestment of
brand ‘Sylvania’
Foray into Electrical Focus on domestic Commissioned Lloyd AC
Consumer Business expansion plant in Ghiloth
with Fans and Lighting
4
KEY MILESTONES
➢ Commodity to Branded
➢ Single to Multi product
➢ Large scale manufacturing to drive
efficiency and quality
➢ Mass to ‘Mass Premium’
➢ Pan India presence
➢ Acquisition of Sylvania and pragmatic exit
➢ Lloyd Acquisition
✓ Entry into high potential Consumer Durables
✓ Aligned with ‘Deeper into Homes’
➢ Expansion to rural areas
5
DEEPER INTO HOMES
2004 2011 Onwards
Lighting Air Conditioner
• 20 Product verticals
Television
• Serving ~70%
Air Cooler
electric sockets
Fans
Water Heater
Switchgears
Refrigerator
Water Purifier
Switches Domestic Appliances
Till 2004
Washing Machine
Domestic Cable
Industrial Cable
6
SEEDING & SCALING BUSINESSES
Rs 1,000+ Crores Categories
Consumer
Cable Wire Lighting
6 Fans
Residential
AC
Switchgear
7
A 10 YEAR RETROSPECT
In Rs Crores FY13 FY23 10Y CAGR
Revenues 4,225 16,868 15%
EBITDA 533 1,603 12%
PAT 371 1,075 11%
Net Worth 1,870 6,614 13%
Market Cap 8,082 74,461 25%
Product Lines 12 20
Head count 3,680 6,822
8
WELL BALANCED PORTFOLIO
Revenue Mix (FY23)
Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd
13% 33% 9% 20% 20%
Contribution Margin Mix (FY23)
Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd
26% 23% 15% 25% 5%
9
MARKET SHARE: TOP 3 ACROSS CATEGORIES
Water Heater (2.5k cr) Fans
20%
MCB (8.5k cr)
(3k cr)
Wires
(17k cr)
Indicative Market Share
15%
Modular Switches AC
(4.5k cr) Lighting (25k cr)
SDA (14k cr) Cables
10%
(7k cr) (17k cr)
5%
<5k cr 5-15k cr >15k cr
Product/Segment
Indicative Market Size (Market Size in Rs)
Source: Internal & industry estimates
10
MOVING
AHEAD
11
GROWTH LEVERS
Electrification- semi urban & Aspirational shift for brands Formalization & Digitisation
rural penetration
Nuclearization of families Product Expansion & Rise in disposable income &
Laddering comfort led demand
12
DRIVING BRAND AFFINITY
➢ National Advertising ➢ Regional Associations ➢ Digital Campaigns
➢ Brand Shops
13
DISTRIBUTION: BROADENING ROUTE TO MARKET
Traditional Modern Trade E-Commerce Exclusive Stores
Projects Canteen Stores International Rural
14
DISTRIBUTION: SEEDING EMERGING CHANNELS
Emerging Channel (% of revenue) Emerging Channel Mix
23% MFR
B2B 22%
42%
8% 15%
E-com
8%
13%
5Y AGO NOW
CSD/CPC
Rural
15
DISTRIBUTION: RURAL- UNTAPPED OPPORTUNITY
Improved electricity penetration creating demand
Rural Vistaar Initiative
Distributor presence in 3k towns
Retail touchpoints 42k+
Informed rural customer shifting to trusted brands
500+ Havells UTSAV
exclusive stores
Havells - Most penetrated FMEG brand in Rural markets
16
DISTRIBUTION: INTERNATIONAL
Rs 500+ crores China+1
Export Revenue (FY23) Creating global opportunities
70+ Countries
~80% Opportunity to play Havells Strengths
Revenue from AMESA in larger addressable Brand, Manufacturing,
(Africa, Middle East, and South Asia) Developed Markets Product portfolio, R&D
Recent Initiatives
Lloyd launch
in Middle Setup of subsidiary in US to
East leverage new growth
in partnership with
opportunities
17
PREMIUMISATION
Ceiling Fans Mixer Grinders
* Premium refers to >1.2x of average selling price (ASP); Value refers to <0.8x of ASP
18
R&D: FAST FOLLOWER TO THOUGHT LEADERSHIP
IOT Smart Homes
First Mover Trend Setter
Maturity
Develop solutions
(2015 onwards)
First Mover
Self development
from ground zero
Fast Follower (2000-2015) Trend Setter
JVs and alliances Time
(upto 1990s)
19
DIGITIZATION: DRIVING BUSINESS EFFICIENCY
Supplier Factory Channel Partner Sales Team Retailer Consumer
3600 Integration of Stakeholders, Business Processes and Data Closer to the Consumer
Global Vendor Portal
Consumer App Consultation
Retailer Engagement
DMS
WA for
Business
D2C Channel
Electrician Loyalty
With Consumer
Field Force thru Lifecycle
Industry 4.0 (Mfg Dealer Portal & App Automation
Execution System)
20
LLOYD
Full Stack 2 mn units
~Rs 3,400 crores Consumer Top 3 AC Manufacturing
Revenue (FY23) Appliances Play AC Player in India capacity across 2
(AC, WM, Ref, TV) plants
21
CONSUMER DURABLES: HIGH GROWTH POTENTIAL INDUSTRY
Large High Growth Market
Room Air Conditioner Washing Machine Refrigerator Colour Television
37,600 45,800
15,900 33,600
9,500 18,900 24,500
16,300
Market Size (Rs Cr)
2019 2025E 2019 2025E 2019 2025E 2019 2025E
Low Penetration
60%
30%
10% 7%
TV Ref WM AC
Source: CEAMA and Frost and Sullivan
22
LLOYD GROWTH PILLARS IN PLACE
Local Manufacturing Channel Expansion
• Sourcing Indigenized • Display at all the large retail chains
• In-house manufacturing of AC • Enhance numeric reach across India
Comprehensive CD Portfolio Brand Salience
• AC, Washing Machine, REF, TV • Celebrity engagement
• High decibel promotion
• Mass to mass premium
23
FINANCIAL HIGHLIGHTS
In Rs Crores
FY19 FY20 FY21 FY22 FY23 9MFY24
Net Revenue 10,068 9,429 10,428 13,889 16,868 13,116
Growth % 24%** (6%) 11% 33% 21% 9%
EBIDTA % 11.8% 11.9% 15.0% 12.7% 9.5% 9.2%
PBT % before exceptions 11.4% 9.6% 13.7% 11.5% 8.6% 8.5%
PAT % before exceptions*
7.8% 7.8% 10.0% 8.6% 6.4% 6.3%
ROCE % 29% 21% 30% 28% 23% 24%
Net Worth 4,192 4,305 5,165 5,989 6,615 7,177
Net Working Capital 766 699 1,583 1,354 2,037 1,831
Cash & Bank 1,288 1,107 1,931 2,982 2,158 2,878
** Ex-Lloyd excise adjusted growth in FY19 was 22%
Above financials based on standalone numbers
ROCE % is EBIT / Average Capital Employed (Net Worth + Gross Debt)
24
GROWTH WITH RESPONSIBILITY
Mid-day Meal Green Cover Program Sanitation Programs Heritage Programs
70k+ hot meals served Over 18 lakh saplings Maintenance of 4,000+ First of its kind CSR
daily across 700+ schools planted in last 5 years Bio-toilets in 500+ schools restoration project
DJSI Ranked 7th in the global electrical equipment sector
MSCI Rating A
External Global
ESG Rating Sustainalytics ESG Risk Rating 21.0 (Medium Risk)
CDP Water Security B & Climate Change C
25
GOVERNANCE
AAA credit Rating
CG2+
Corporate Governance rating
Consistent Dividend payout
ratio of ~40%
Highly reputed independent
professional board
14 member board; only 3 family
members on the board
26
SUMMARY
An Indian brand born, survived and thrived
amidst fierce competition
Uniquely positioned to serve the Value creation for all its
aspiring nation and build an stakeholders
institution
Entrepreneurship with guts, integrity
and humility
Excited with opportunities ahead
27
THANK
YOU
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