Havells India’s Strategic Growth: Doubling AC Output, Expanding Global Presence

Leading Fast Moving Electrical Goods (FMEG) company Havells India Ltd is in plans to expand the company’s export markets in the residential air-conditioner segment after increasing its production capacity by 2X.

Details of the Expansion

On Tuesday, the Executive Director of Havells India, Yogesh Kumar Gupta, said that the company has invested around ₹400 crore so far in the first phase of its new manufacturing unit located at Sri City in Andhra Pradesh, post which its capacity has gone over 2 million units per annum.

He further added that the company, which exports residential air conditioners to about 30 countries, including nations like the South Asian Association for Regional Cooperation (SAARC) and Africa, has also started to ship units to the US markets. Now, they are planning to expand beyond that.

Speaking of the same, the Executive Director stated, “We have big plans for international markets. We have put up our second plant in Sri city, which is very near to the Chennai port. We are already exporting to the Middle East, SAARC countries and African countries. We have also started exporting to the US. So, we have big plans for exports. We are looking at how we can expand to different countries, and we can be present in those countries with our products.”

He also said that earlier, the company had only one plant, and that plant could manufacture 10 lakh ACs in a year. Therefore, they focused more on the domestic regions. Their second plant is considered crucial as it would help them grow domestically and internationally.

On March 19, 2024, the company’s appliances brand, Lloyds, launched a set of new AC models. It stated that with its increased manufacturing capabilities, the company is set to offer over 120 models this season.

It is to be noted that in the domestic market of the residential AC segment, Lloyds is the third-largest player. Currently, the domestic value addition of Lloyds AC is around 80%, and the company plans to grow it more in the coming year as per its Make in India Vision.

In 2017, Lloyd Electrical and Engineering Ltd was acquired from BR Punj Group by Havells India for ₹1,600 crore.

On Wednesday, March 20, 2024, the share price of Havells India Ltd opened at ₹1,460.00, touching the day’s high at ₹1,464.60, as of 1:00 PM on the NSE.

About Havells India Ltd

Havells India Limited is a leading FMEG company and a major power distribution equipment manufacturer. The company offers a comprehensive range of products, which includes cables, wires, fans, motors, modular switches, air conditioners, home appliances, power capacitors, and more.

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