Havells India has started selling its air conditioners, cables, and lighting products like luminaires in the US. This makes Havells the first Indian electronics manufacturer to launch its own brand there, according to chairman and managing director Anil Rai Gupta.
Investment Plans
This year, Havells plans to invest ₹1,000 crore to increase its production capacity for cables, refrigerators, lighting, and fans. The company is also considering manufacturing AC compressors. Last year, it invested about ₹700 crore in capital expenditures.
US Market Entry
In the US, Havells is selling air conditioners under its Lloyd brand through Lowe’s, a home improvement retailer’s e-commerce platform. The cables and luminaires are sold under the Havells brand.
Gupta mentioned that the company is setting up two joint ventures in the US with local distribution companies. Havells will own 75-90% of these ventures. One joint venture will focus on selling and distributing ACs, and the other will handle luminaires.
“We want to build our brand in the US based on technology, not just price. Our team will spend the next two years developing products for the US market, which is growing,” Gupta said.
Setting Up in the US
Havells has established its US base in New York and hired a local team for product development and customization to meet US standards. This is Havells’ first overseas market with its own base, despite exporting products worth nearly $80 million globally. For AC sales, Havells is targeting certified installers, as US consumers need certified professionals to install air conditioners.
Market Opportunities
Executive director Rajiv Goel noted that ACs are covered under the US Inflation Reduction Act, presenting a long-term opportunity. He expects the US to contribute 35-40% of Havells’ total international business in the next 4-5 years.
Goel added, “The US market can teach us a lot. High-end Indian consumers have global aspirations, so our US experience can help us launch premium products in India.”
Domestic Market
In India, the Lloyd brand is a strong player in the AC market and is expanding into refrigerators, washing machines, and televisions.
In the 2023-24 fiscal year, Havells India achieved sales of ₹18,550 crore, a 10% increase from the previous year. Net profit rose by 18% to ₹1,273 crore. The Lloyd consumer durables business reported sales of ₹3,785 crore in FY24, with losses reduced to ₹164 crore from ₹222 crore in FY23.
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