Havells, the company behind the Lloyd appliances brand, is planning to expand its overseas markets for residential air conditioners. The company has doubled its production capacity and invested around Rs 400 crore in its new manufacturing unit in Sri City, Andhra Pradesh. With this expansion, its production capacity has increased to over 2 million units per year.
Havells is currently exporting room air conditioners to 30 countries, including neighboring SAARC and African nations. It has also started shipping units to the US market and aims to expand further internationally.
According to Havells India Executive Director Yogesh Kumar Gupta, the company has significant plans for international markets. The new manufacturing plant in Sri City, close to the Chennai port, will facilitate this expansion.
Previously, Havells had limited capacity for exports due to having only one manufacturing plant. However, with the addition of the second plant, the company can now focus on growing its presence both domestically and abroad.
The company expects a positive performance this year, especially with the AC sales season starting on a strong note in the Southern markets.
Lloyd, which is the third-largest player in the domestic residential AC segment, has expanded its manufacturing capabilities and now offers more than 120 models.
In line with its Make in India vision, Lloyd plans to increase domestic value addition to its ACs, which currently stands at around 80%. This move aligns with the company’s efforts to contribute to the country’s manufacturing sector.
Despite reporting a loss of Rs 221 crore for the financial year ended March 31, 2023, Lloyd remains optimistic about its growth prospects, given the potential of the Indian room AC market.
In 2017, Havells India acquired Lloyd Electrical and Engineering Ltd, strengthening its position in the appliances sector.
With the Indian room AC market still having a low penetration rate in households, the industry anticipates significant growth opportunities in the coming years.
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