Havell Industry report

COMPANY PROFILE

Havells India Limited

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TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................5

Key Employees.....................................................................................................8

Key Employee Biographies..................................................................................9

Major Products and Services............................................................................12Top Competitors.................................................................................................13

Company View.....................................................................................................14

Locations and Subsidiaries...............................................................................16

Havells India Limited Page 2 MarketLine

Havells India LimitedTABLE OF CONTENTS

COMPANY OVERVIEW

Havells India (Havells) is an electrical and power equipment manufacturer. The company's productsinclude industrial and domestic circuit protection devices, cables and wires, motors, fans, modularswitches, home appliances, electric water heaters, power capacitors, compact fluorescent lamps(CFL) lamps, luminaires for domestic, commercial and industrial applications. Havells markets itsproducts under the brand names, Havells, Crabtree, Sylvania, Concord, Luminance and Standard.The company operates in Asia, Europe, Africa and Americas. It is headquartered in Noida, Indiaand employs around 6,500 people.

The company recorded revenues of INR81,858 million (approximately $1,362.1 million) in the fiscalyear ended March 2014, an increase of 12.9% over 2013. The company's operating profit wasINR6,269.5 million (approximately $104.3 million) in fiscal 2014, an increase of 11% over 2013. Itsnet profit was INR4,463.3 million (approximately $74.3 million) in fiscal 2014, a decrease of 23.2%compared to 2013.

KEY FACTS

Havells India LimitedHead OfficeQRG Towers2D Sec 126Express wayNoida 201304Uttar PradeshIND

91 120 477 1000Phone

91 120 477 2000Fax

http://www.havells.comWeb Address81,858.0Revenue / turnover

(INR Mn)MarchFinancial Year End6,500Employees517354BSE Ltd TickerHAVELLSNational Stock

Exchange of IndiaTicker


Havells India LimitedCompany Overview

BUSINESS DESCRIPTION

Havells India (Havells) is an India-based fast moving electrical goods (FMEG) company.The companyoperates its manufacturing facilities at Faridabad in Haryana, Alwar and Neemrana in Rajasthan,Haridwar in Uttarakhand, Sahibabad and Noida in Uttar Pradesh, and Baddi in Himachal Pradesh.

The company operates through four segments: switchgears, cables, lighting and fixtures, andelectrical consumer durables.

Havells' switchgears segment offers domestic and industrial switchgears, electrical wiring accessories,industrial motors and capacitors. The company offers a range of switchgear products, includingCrabtree XPRO switch gears, miniature circuit breakers (MCB), residual current circuit breakers(RCCB), isolators, indicator lights, residual current circuit breakers with over-current protection(RCBO) and time switches.

The cables segment offers aluminum power cables, copper control cables, copper flexible cables,solar cables, fire survival cables and specialty cables.

The lighting and fixtures segment manufactures compact fluorescent lamps (CFLs), consumer lightingproducts, light-emitting-diode (LED) lighting products, down lighters, industrial lighting products, roadlighting products, specialty lamps, luminaries, HID lamps, home decor lighting products, commerciallighting products, landscape bunker lighting products, area lighting products, Sylvania lighting productsand other lighting fixtures.

Under the electrical consumer durables segment, the company manufactures fans, water heatersand domestic appliances. The company offers various types of fans such as ceiling fans, table fans,wall mounting fans, pedestal fans, air circulator fans, ventilating fans, high speed fans and exhaustfans. Havells designs and manufactures a range of domestic appliances, including juicers, mixergrinders, hand blenders, choppers, steam and dry irons, pop-up toasters, sandwich makers, roomheaters, electric cookers, induction cookers and kettles.

The company also manufactures modular switches and motors, including foot mounting, flangemotor, foot cum flange, inverter duty motors with forced cooling, crane duty motors, brake motorsand smoke extraction motors.

Havells markets its products under the brand names, including Havells, Crabtree, Sylvania, Concord,Luminance and Standard.

The company' subsidiaries include Havells Sylvania Dubai FZCO, Havells USA Inc, Havells HoldingsLimited, Havells Exim Limited, Havells Malta Limited, Havells Sylvania Sweden A.B., Havells SylvaniaFrance S.A.S., Havells Sylvania Argentina S.A. and Havells Sylvania Europe Limited among others.


Havells India LimitedBusiness Description

HISTORY

Havells India (Havells) commenced trading operations in New Delhi, India, in 1958.

In 1976, the company set up the first manufacturing plant for rewireable switches and changeoverswitches at New Delhi, India.

Havells established a manufacturing plant for HBC Fuses at Delhi, India, in 1979 and an energymeters facility at New Delhi, India, in 1980. In 1983, Havells acquired Towers and Transformers(TTL), an energy meters manufacturing company.

The company formed a joint venture with Geyer of Germany and started manufacturing miniaturecircuit breakers (MCBs) in 1987.

In 1990, Havells started manufacturing changeover switches at Sahibabad, India. In 1993, thecompany established another plant at Faridabad, India, for manufacturing control gear products. In1996, Havells acquired a power cables and wires manufacturing plant at Alwar, India.

The company acquired Electric Control & Switchboards, a manufacturer of customized packagedsolutions at Noida, India, in 1997. In 1998, Havells introduced high-end Ferraris meters through ajoint venture with a Germany-based company called DZG.

In 2000, Havells acquired a controlling stake in Duke Arnics Electronics and Standard Electricals.In 2001, Havells acquired business of Havells Industries, MCCB of Crabtree India and merged ECSinto the company to consolidate its area of core competence.

Standard Electrical Company became a 100% subsidiary of the company in 2002. In the same year,the company attained the International Electrotechnical Commission (IEC) certification for industrialswitchgear and Canadian Standards Association (CSA) certification for all of its manufacturing plants.

In 2004, Havells established manufacturing facilities for domestic switchgear, compact fluorescentlamp (CFL), ceiling fans at Baddi, Faridabad and Noida respectively. In the same year, the companyopened a marketing office in London through its wholly owned subsidiary, Havells U.K.

The companys fans manufacturing plant was set up in Haridwar, India, in 2005. In the same year,the company set up research and development center at its headquarters in Noida.

In 2006, Crabtree India merged with Havells. In the same year, Havells expanded its manufacturingplants at Haridwar, Alwar and Baddi with the addition of CFL production unit, production capacityand an export oriented unit (EOU) respectively.


Havells India LimitedHistory

Havell's Netherlands B.V., a step subsidiary of Havells, acquired Sylvania, a Frankfurt, Germany-basedlighting company, in 2007.

In 2008, Crabtree, a brand of Havells, launched a new range of AURA IWS (In-Walled Switch)switches, an in-wall switching system. In the same year, Havells launched consumer lighting fixturesproducts and also introduced a new range of CFL called LILIPUT.

The company launched Endura Lite, a product in the light-emitting-diodes (LED) market and adesigner range of distribution board DBOXx in 2009. In the same year, Havells launched a newseries of energy saving commercial lighting fixtures Equilibro and Ivy Mirror Optics.

In 2010, Havells introduced a new range of CFLs with HPF (high power factor >0.85) integral ballasts.In the same year, Havells announced the opening of its first display and learning center HavellsWorld in New Delhi, India.

The company opened its first display and learning center Havells World, in Mumbai, India in 2010.In the same year, Havells ventured into home comfort products, with its entry into electric waterheater business. Also in the same year, the company set up an additional plant for its cable andwire division at Alwar in Rajasthan.

In 2011, Havells' switchgear manufacturing division established an additional plant at SahibabadIndustrial Area, Ghaziabad, Uttar Pradesh, to cater to both domestic and international markets. Inthe same year, Havells entered into home appliances business to cater to the domestic appliancemarket. Also in 2011, the company entered into a joint venture named Jiangsu Havells SylvaniaLighting Co. Ltd. with Shanghai Yaming Lighting Co. Ltd, a lighting company based in China forproviding energy and lighting products for global Sylvania and local China markets.

Havells changed its registered office in New Delhi from 1/7, Ram Kishore Road, Civil Lines to 1, RajNarain Marg, Civil Lines in 2012. In the same year, the companys wholly owned subsidiaries, Havell'sNetherlands BV and Flowil International Lighting (Holding) BV (Havells Sylvania) entered into asettlement agreement with Osram Sylvania Inc and OSRAM AG. The settlement confirmed andclarified the jurisdictional ownership of the Sylvania brand. Osram Sylvania Inc. owns the Sylvaniatrademark in the US, Puerto Rico, Canada and Mexico, and Havells Sylvania owns the trademarkin the rest of the world.

Also in 2012, the company set up new lighting fixtures plant in Neemrana. Also in the same year,the company launched Crabtree XPRO switchgear and copper flexible cables.

In 2013, QRG Enterprises Ltd, a company that owns the brand name and trade mark "Havells",entered into a revised trademark license agreement with the company. Pursuant to which, the brandwould be transferred to the company with effect from April 2016.

The company appointed Anil Rai Gupta as the Chairman and Managing Director in November 2014.



Havells appointed Ameet Kumar Gupta as the Whole-Time Director in January 2015.

In April 2015, the company proposed to acquire 51% stake in Promptec Renewable Energy SolutionsPvt Ltd, a Bangalore based company engaged in marketing and manufacturing of LED productsincluding street lighting, office lighting and solar lighting.



KEY EMPLOYEES

CompensationBoardJob TitleName48302000 INRExecutive BoardChairman and Managing DirectorAnil Rai Gupta

45715000 INRExecutive BoardDirector, FinanceRajesh GuptaExecutive BoardWhole-Time DirectorAmeet Kumar Gupta

Non Executive BoardDirectorSurjit GuptaNon Executive BoardDirectorPratima Ram

Non Executive BoardDirectorT V Mohandas Pai

Non Executive BoardDirectorPuneet Bhatia

Non Executive BoardIndependent DirectorVijay Kumar ChopraNon Executive BoardIndependent DirectorSunil Behari Mathur

Non Executive BoardIndependent DirectorAvinash P Gandhi

Non Executive BoardIndependent DirectorSurender Kumar TutejaNon Executive BoardIndependent DirectorAdarsh Kishore

Senior ManagementCompany Secretary andCompliance Officer

Sanjay Kumar Gupta


Havells India LimitedKey Employees

KEY EMPLOYEE BIOGRAPHIES

Anil Rai Gupta

Board: Executive BoardJob Title: Chairman and Managing DirectorSince: 2014Age: 46

Mr. Gupta serves as the Chairman and Managing Director at Havells India (Havells) since November2014. He served as the Joint Managing Director at Havells India (Havells). He serves as a Directorat QRG Enterprises, QRG Corporate Services, QRG Central Hospital & Research Centre, QRGMedicare, Janalakshmi Financial Services Private Limited, Sylvania Lighting International, FlowilInternational Lighting (Holding), Havells Netherlands, Havells Netherlands Holding, Havells Maltaand Havells Holdings. Mr. Gupta holds a BA degree in Economics and an MBA in Marketing andFinance from the Wake Forest University, North Carolina, the US.

Rajesh GuptaBoard: Executive BoardJob Title: Director, FinanceAge: 58

Mr. Gupta serves as the Director of Finance at Havells India (Havells). He is a Chartered Accountanthaving experience in finance and allied fields.

Surjit GuptaBoard: Non Executive BoardJob Title: DirectorAge: 73

Mr. Gupta serves as a Director at Havells India (Havells). He serves as a Director at Havells IndiaLimited, QRG Enterprises Limited, QRG Corporate Services Limited, QRG Central Hospital &Research Centre Limited and QRG Medicare Limited. Mr. Gupta holds F.Sc. from Punjab UniversityDiploma in Mechanical Engineering from State Board of Technical Education, Punjab.

Vijay Kumar ChopraBoard: Non Executive BoardJob Title: Independent DirectorAge: 69


Havells India LimitedKey Employee Biographies

Mr. Chopra serves as an Independent Director at Havells India (Havells). He serves as a Directorat Rolta India Limited, Dewan Housing Finance Corporation Limited, Future Retail Limited, PNBMetlife India Insurance Company Limited, Reliance Capital Pension Fund Limited, Milestone CapitalAdvisors Limited, Jaiprakash Associates Limited, Responsive Industries Limited, Bhartiya InternationalLimited, RGVN (North East) Micro Finance Limited, India Infoline Finance Limited, Pegasus AssetsReconstruction Private Limited, Religare Invesco Asset Management Company Private Limited andBandhan Financial Services Private Limited. Mr. Chopra served at Central Bank of India, Punjab &Sindh Bank, Corporation Bank and SIDBI. He served as a Wholetime member at SEBI. He is aChartered Accountant & Certified Associate of Indian Institute of Bankers.

Sunil Behari Mathur

Board: Non Executive BoardJob Title: Independent DirectorAge: 71

Mr. Mathur serves as an Independent Director at Havells India (Havells). He serves as a Directorat Havells India Limited, IDFC Trustee Company Limited, Cholamandalam MS General InsuranceCompany Limited, National Stock Exchange of India Limited, National Collateral ManagementServices Limited, Hindustan Oil Exploration Company Limited, DCM Shriram Industries Limited,Infrastructure Finance & Leasing Company Limited, Housing Development Infrastructure Limited,Ultratech Cement Limited, Axis Bank Limited, Minda Corporation Limited, ITC Ltd, JanalakshmiFinancial Services Private Limited, Munich Re India Services Private Limited and India MortgageGuarantee Corporation Pvt Ltd. Mr. Mathur served as the Chairman at LIC corporation. He heldvarious positions such as the Senior Divisional Manager of Gwalior Division, Chief of CorporatePlanning, General Manager of LIC (International) E.C., Zonal Manager in Charge of Western Zoneand Executive Director at LIC. Mr. Mathur is a Chartered Accountant.

Avinash P Gandhi


Mr. Gandhi serves as an Independent Director at Havells India (Havells). He serves as a Directorat Fag Bearings India Limited, Lumax Industries Limited, Uniproducts (India) Limited, MindaCorporation Limited, Indo Alusys Industries Limited, Minda Sai Limited, Avinar Consulting PrivateLimited, Minda Valeo Security Systems Private Limited and Minda Farukawa Electric Private Limited.Mr. Gandhi holds B.E. (Mechanical) degree.

Surender Kumar TutejaBoard: Non Executive BoardJob Title: Independent Director



Age: 70

Mr. Tuteja serves as an Independent Director at Havells India (Havells). He serves as a Director atSML Isuzu, A2Z Maintenance & Engineering Services, Adani Logistics, Daawat Foods, Trident,Shree Renuka Sugars, Axis Private Equity, Intas Pharmaceuticals, Shree Renuka Energy, AdaniEnterprises, Gujarat Foils, LT Foods, PTC India Financial Services, SIDBI Venture Capital Limited,Tiger Warehousing Cold Chain Private, Pegasus Assets Reconstruction Private, Topworth EnergyPrivate, Devenio Optimus Advisors Private, Norwest Estates Private Limited and Altaris Credit RatingAgency Private. Mr. Tuteja served on different posts in Government of India, Government of Punjaband in Public Sector.

Adarsh Kishore


Mr. Kishore serves as an Independent Director at Havells India (Havells). He serves as a Directorat AEGON Religare Life Insurance Company and CFM International. Mr. Kishore was a FormerExecutive Director at International Monetary Fund. He holds IAS, Phd in Political Economy.



MAJOR PRODUCTS AND SERVICES

Havells India (Havells) is an electrical and power equipment manufacturer. The company's key products and brands include the following:

Products:

SwitchgearsSwitchesElectrical wiring accessories Motors CapacitorsCables and wires Underground cablesEnergy saving lamps (compact fluorescent lamps (CFLs)) LuminariesFans Water heaters and Geysers Domestic appliances

Brands:

Havells Crabtree Sylvania Concord Standard


Havells India LimitedMajor Products and Services

TOP COMPETITORS

The following companies are the major competitors of Havells India Limited

Bajaj Electricals LimitedCrompton Greaves LimitedFinolex Cables LimitedEon Electric Ltd


Havells India LimitedTop Competitors

COMPANY VIEW

A statement by Qimat Rai Gupta, the Former Chairman and Managing Director at Havells India isgiven below. The statement has been taken from the company's 2014 annual report.

Dear Shareholders,

Greetings from Havells!

When we create a brand story with a difference, the result is an unusual set of products, offeringsand deep connect with the end customer

In terms of macro-economic trends, the last fiscal was worse than the previous year, as the windsof slowdown touched Indian shores after sweeping through the US, Europe, Japan and China.

This aggravated the overall inflationary trend in the country, which remained in double-digits througha large part of the year. As a result, the interest rates too remained high throughout. All this, coupledwith the policy paralysis and slow decision-making process at the government level, made thingsworse for businesses as well as customers.

Havells did an overall good job of wading through this quagmire of challenges and posted 11.71%revenue growth to Rs.4,720 crores, while improving PAT margins to 10%. In the process, theCompany also added nearly 50% to its investors wealth, as its market capitalization of Rs.8,033crores at the beginning of the fiscal rose to Rs.11,657 crores on 31st March, 2014. The Companyalso paid Rs.15 per share as dividends.

This was made possible because of the relentless passion for innovation, living the green ethos andbeing customer-friendly at all times.The years of efforts to grow the Company through branding anddistribution, like a Fast Moving Consumer Products Company, are now bearing fruits.

Our branding spends through the year were 2.4% of revenues. The distribution network crossed5,800. The Havells brand maintained top of the mind recall among customers, while the marketshare across product categories strengthened during the year

The overseas business of Sylvania also showed resilience in facing the challenges of economicslowdown and currency fluctuations. Most importantly, this business has now emerged stronger andleaner with reduced debts and healthy cash flows. Every effort is being made to realize the businessfull potential, which is much higher if we take into account its size, brands and customer relations.Any future improvement in the economic scenario in Europe and Latin America would greatly helpthe Company.


Havells India LimitedCompany View

Havells has reached an important juncture in its journey towards becoming a wellrecognised FastMoving Electrical Goods Company in India. The Company has already created production capacityto meet most of its requirements over the next couple of years.This will mean the capital investmentswill be limited from now onwards. At the same time, increasingly better utilization of installed capacitieswould add to overall profitability as well as cash accruals.

While long-term economic success and growth are necessary for survival of any entity, that is notsufficient by itself. Havells has always believed that a business is an active entity of society andeconomy, and plays an important role in nation-building. As a result, we have always viewed ourCorporate Social Responsibility (CSR) activities as a privilege rather than an obligation. Childrenare the future of the nation and hence, nothing can parallel their safety, proper nourishment andcare in creating a better, more prosperous tomorrow. With this thought, Havells has focused its CSRefforts on providing mid-day meals to children in government schools. Today, Havells has createdthe entire infrastructure - from kitchen to distribution vans - to cover 35,000 school children everyday.

We look forward to the new financial year with a lot of optimism. Most experts predict the Indianeconomy to grow faster in financial year 2014-15 compared to financial year 2013-14. In that sense,the domestic growth cycle is likely to have bottomed out and recovery is set to begin. Such a scenariowill be very good for the country as well as Havells.

Building trust-based transparent relationships that enable each individual to excel has always beenat the heart of Havells corporate philosophy.We believe that this trust emanates from our concertedfocus on green ethos, search for innovative efficiencies and customer friendliness. This forms thesecret ingredient that distinguishes us from others. I would like to thank our people for demonstratingtheir prowess and excelling in their areas, coming out with new solutions to old problems and, in theprocess, helping the Company grow. I also thank our trade associates, whose dedication andcommitment remain the base on which Havells growth has become possible. Together, we havemuch to look forward to as we strive to make Havells even stronger and bigger.

I thank you all for supporting and encouraging us through this long journey. I would also like toexpress my gratitude towards the Board of Directors, whose support and guidance have beeninvaluable on our path of progress.


Havells India LimitedCompany View

LOCATIONS AND SUBSIDIARIESHead OfficeHavells India LimitedQRG Towers2D Sec 126Express wayNoida 201304Uttar PradeshINDP:91 120 477 1000F:91 120 477 2000http://www.havells.com

Other Locations and Subsidiaries

Havells Sylvania Dubai FZCOHavells India Limited (China)Liu 151102Dubai Airport Free ZoneGuangzhou Radio Group Science and

Technology DubaiBuilding No. 163 Pingyun Road AREWest Of Huangpu AvenueGuangzhou 510656CHN

Havells India Limited (Mexico)Havells USA Inc.Montes Urales125-B Villanova Drive455 3er piso Col. Lomas de ChapultecAtlantaC P 11000Georgia 30336MEXUSA

Havells Holdings LimitedHavells India Limited (the UK)Isle of ManLongbow HouseGBR14-20 Chiswell Street

London EC1Y 4TWGBR

Havells Malta LimitedHavells Exim LimitedMLTHKG

Havells Sylvania France S.A.S.Havells Sylvania Sweden A.B.FRASWE


Havells India LimitedLocations and Subsidiaries

Havells Sylvania Europe LimitedHavells Sylvania Argentina S.A.GBRARG


Havells India LimitedLocations and Subsidiaries

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