Havells India Limited (HIL), a leading name in the consumer electrical products sector, has once again proven its commitment to innovation and expansion. The company has announced the establishment of a cutting-edge refrigerator manufacturing facility in Ghiloth, Rajasthan. This strategic move underscores Havells’ focus on backward integration, economies of scale, and solidifying its foothold in the consumer durables market.
HIL’s upcoming refrigerator facility aims to achieve a production capacity of 1.4 million units annually. The project is scheduled for completion by Q2FY27, with an investment of approximately Rs 480 crore, fully financed through internal accruals. This initiative aligns with Havells’ long-term growth strategy of tapping into new product categories while leveraging its strong in-house manufacturing capabilities.
The choice of Ghiloth in Rajasthan is no coincidence. Its strategic location enables better connectivity to key markets across India, ensuring seamless supply chain management. This move will further enhance Havells’ competitive advantage in the domestic appliance segment by reducing dependency on external suppliers.
With this facility, Havells aims to benefit from backward integration, reducing production costs and improving efficiency. This approach not only strengthens its product value chain but also paves the way for more competitive pricing in a market that thrives on affordability and quality.
HIL’s decision to fund the project through internal accruals highlights its robust financial health. The Rs 480 crore investment reflects the company’s confidence in its ability to sustain and grow in an ever-evolving market.
From cables to lighting fixtures, Havells has a diverse product portfolio that caters to multiple consumer needs. With cables contributing 34% of the revenue in FY24 and consumer durables making up 19%, the addition of a refrigerator segment signals a significant step in strengthening its premium positioning.
Havells’ large-scale operations are supported by a vast network of 18,000 direct dealers and a reach extending to 2.47 lakh retailers across 3,000 towns in India. The new facility will undoubtedly bolster its market presence and elevate its standing in the consumer durables sector.
Havells India’s announcement of the new refrigerator facility marks another milestone in its journey toward becoming a household name in consumer durables. With its strong focus on quality, innovation, and customer-centric solutions, the company is poised to redefine the market dynamics.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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