Havells India Limited April 2023

Growth In Focus
RETROSPECT INDUSTRY TRENDS MOVING AHEAD
2
3
HUMBLE ORIGIN
➢ Founded a small trading business at

Bhagirath Palace, Delhi
➢ Acquired Havells brand in 1971; an

unconventional move
➢ Key foundational values- Transparency,

Simplicity and Integrity

4
AN EVOLVING JOURNEY
Acquisition of
Got listed on Stock ‘Lloyd’ consumer
Commenced Exchange durable business
business with Acquired global
Switchgears and business of First foray into South
Cables ‘Sylvania’ India with 2 new plants
1958 1971 1993 2003 2007 2015 2017 2019 2023
Acquired ‘Havells’ Divestment of

brand ‘Sylvania’
Foray into Electrical Focus on domestic Commissioned Lloyd AC

Consumer Business expansion plant in Ghiloth
with Fans and Lighting

5
DEEPER INTO HOMES
2004 2011 Onwards
INDUSTRIAL TO
CONSUMER BRAND Lighting Air Conditioner
Television
Air Cooler
MASS TO Fans
Switchgears
Water Heater
MASS-PREMIUM
Refrigerator
Switches Water Purifier

Domestic Appliances
Till 2004
Washing Machine
Domestic Cable
Industrial Cable

6
CONSTANT RE-IMAGINING GROWTH
2022:
$1,700 mn
Consistently
Creating
2017: Lloyd & Water
runway
Purifier $ 840 mn
2016: Air Coolers $ 737 mn
2013: Pumps $ 579 mn

2012: Water Heaters, $ 495 mn
2011: SDA $ 395 mn
2003: Fans & Lighting $ 35 mn
2000 2005 2010 2015 2020 2025

7
PERFORMANCE: 5Y & 10Y
In Rs Crore FY12 FY17 FY22 5Y CAGR 10Y CAGR
Revenues 3,616 6,135 13,889 18% 14%
EBITDA 459 824 1,758 16% 14%
EBITDA % 12.7% 13.4% 12.7%
PAT 305 539 1,195 17% 15%
PAT % 8.4% 8.8% 8.6%
Net Worth 1,608 3,274 5,989 13% 14%
Market Cap 7,135 29,253 72,272 20% 26%
Product Lines 13 14 20
Head count 3,090 4,974 5,970 4% 7%

8
CASH GENERATION & ALLOCATION
FY15 opening ~Rs 700 crores cash
Cash Sources
Operating Cash Flow Proceeds from Sylvania Others (including

~Rs 6,200 crores & other sale other income)
(~76% of EBITDA) ~Rs 1,100 crores ~Rs 1,000 crores
Cash Generation ~Rs 8,300 crores

Allocated to
Capex Lloyd Acquisition Dividend

~Rs 2,000 crores ~Rs 1,550 crores ~Rs 2,500 crores
(~32% of OCF) (~40% of OCF)
FY22 closing ~Rs 3,000 crores cash

9
BUSINESS MIX EVOLUTION
Revenue Contribution

10
SEEDING & SCALING BUSINESSES
Rs 1,000+ Crores Categories
Consumer
Cable Wire Lighting
6 Fans
Residential
AC
Switchgear

11
SEEDING EMERGING CHANNELS
Emerging Channel (% of revenue) Emerging Channel Mix
23% MFR
B2B 22%
42%
8% 15%
E-com
8%
13%
5Y AGO NOW
CSD/CPC
Rural

12
PREMIUMISING PORTFOLIO
Ceiling Fans Mixer Grinders
* Premium refers to >1.2x of average selling price (ASP); Value refers to <0.8x of ASP
13
WHAT WE ARE KNOWN FOR
A trusted & household

FMEG brand
Aspirational – Mass Premium
Well regarded for

governance & values
Entrepreneurial vision and
professional rigour
Debt free, cash positive,
AAA rated
Performance delivered
through business cycles

14
CULTURE BUILT OVER 5 DECADES
Customer Centricity
Ethics & Honesty Entrepreneurship

Values
Empathy Equality

15
16
TWO DEEP POOLS OF HIGH GROWTH
Electricals Electronics
Market Size In Rs Cr (Annual) Market Size In Rs Cr (Annual)
2,00,000 1,75,000
1,25,000
1,00,000
Today In 5Y Today In 5Y
Source: Internal & industry estimates

17
INDUSTRY POSITION Product/Segment
(Market Size in Rs)
AC
(25k cr)
>10%
SDA WM Ref
(7k cr) (13k cr) Lighting
(25k cr)
(14k cr)
Water Heater
(2.5k cr)
Revenue Growth
Switches Fans Wires

(4.5k cr) (8.5k cr) (17k cr)
5-10%
Motor Pump Cables

Switchgear (5.5k cr) (6.5k cr) (17k cr)
(3k cr)
<5%
<5k cr 5-15k cr >15k cr

Size
Source: Internal & industry estimates
18
INDUSTRY POSITION Product/Segment
AC
>10%
SDA WM Ref
~75% Portfolio in High Growth

Water Heater
Lighting
Revenue Growth
Switches Fans Wires

5-10%
Motor Pump Cables

Switchgear
<5%
<5k cr 5-15k cr >15k cr

Size

19
MEGATRENDS
Aspirational, informed &

Greater share of wallet
demanding
Consumer Uniqueness Home IoT & smart connected homes
Traditional GTM relevant but

Increasing intensity
challenged
Competition GTM Follow the consumer – Omni

New disruptors
Channel

20
MEGATRENDS
Digital discovery + Physical

Remains relevant
execution
Brand Digital Deep consumer digital

Trust, reliability & continuity
engagement
Purpose Way of life
Talent Wealth creation ESG Adding real value to businesses

21
22
STRATEGIC PILLARS – PAST COUPLE OF DECADES
Brand Distribution Manufacturing People

23
STRATEGIC PILLARS
Brand Distribution Manufacturing People

24
BRAND: STRADDLING ACROSS
ELECTRICAL INDUSTRY CONSUMER DURABLES
Socio Economic/ Income
MASS MASS PREMIUM PREMIUM/PREMIUM + MASS PREMIUM/PREMIUM +

LIFESTYLE
NEED STATE
ASPIRATIONOL
AFFORDABLE

25
OMNI PRESENT HAVELLS: CLOSER, DEEPER, WIDER
Traditional Modern Trade E-Commerce Exclusive Stores
Projects Canteen Stores International Rural

26
RURAL- UNTAPPED OPPORTUNITY
₹
➢ Improved electricity penetration creating demand
➢ Informed rural customer shifting to trusted brands
➢ Direct presence in 3k towns with population range of 10K-50K
➢ Havells is the most penetrated FMEG brand in Rural markets

27
INNOVATION: FAST FOLLOWER TO THOUGHT LEADERSHIP
IOT Smart Homes
First Mover Trend Setter

Maturity
Develop solutions
(2015 onwards)
First Mover
Self development
from ground zero
Fast Follower (2000-2015) Trend Setter
JVs and alliances Time

(upto 1990s)

28
DIGITIZATION: DRIVING BUSINESS EFFICIENCY
Supplier Factory Channel Partner Sales Team Retailer Consumer

3600 Integration of Stakeholders, Business Processes and Data Closer to the Consumer
Global Vendor Portal
Consumer App Consultation

Retailer Engagement
DMS
WA for
Business
D2C Channel
Electrician Loyalty
With Consumer
Field Force thru Lifecycle
Industry 4.0 (Mfg Dealer Portal & App Automation
Execution System)

29
TALENT
“KHJJS”
Integrating individual
& company aspiration
Instituting wealth creation

Entrepreneurial
opportunity
Distributed leadership Laterals to “leaders from within”

30
ORGANIC INCUBATIONS
“Others” Category Revenue Trajectory

Motor
~Rs 1,000 cr
Pump
10x
In 7 Years
Revenue
Solar
Personal Grooming
Rs 91 cr (FY15)
Water Purifier
Years

31
WHITE SPACES – CRITERIA TO EVALUATE
Organic Inorganic
Sunrise Sector Large Market Size

Growth & Strategic fit
Profitability
High Growth Brand Leverage
Channel Synergies Technology Play
Inability to seed
Premiumisation Scope Adjacencies such business
internally

32
GROWTH WITH RESPONSIBILITY
Mid-day Meal Green Cover Program Sanitation Programs Heritage Programs
60k hot meals served 15 lakh saplings planted 4600 bio-toilets Installed till First of its kind CSR
daily across 693 schools till date date restoration project
DJSI (Global) Ranked 7th in the global electrical equipment sector

External ESG
Rating MSCI (Global) Rating A

33
GOVERNANCE
AAA credit Rating
CG2+
Corporate Governance rating
Consistent Dividend payout

ratio of ~40%
Highly reputed independent

professional board
14 member board; only 3 family
members on the board

34
SUMMARY
An Indian brand born, survived and thrived

amidst fierce competition
Uniquely positioned to serve the Value creation for all its

aspiring nation and build an stakeholders
institution
Entrepreneurship with guts, integrity

and humility
Excited with opportunities ahead

35

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Growth In Focus

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

➢ Founded a small trading business at

➢ Acquired Havells brand in 1971; an

➢ Key foundational values- Transparency,

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

1958 1971 1993 2003 2007 2015 2017 2019 2023

Acquired ‘Havells’ Divestment of

Foray into Electrical Focus on domestic Commissioned Lloyd AC

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

2004 2011 Onwards

Switches Water Purifier

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

2013: Pumps $ 579 mn

2003: Fans & Lighting $ 35 mn

2000 2005 2010 2015 2020 2025

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

In Rs Crore FY12 FY17 FY22 5Y CAGR 10Y CAGR

Revenues 3,616 6,135 13,889 18% 14%

EBITDA 459 824 1,758 16% 14%

EBITDA % 12.7% 13.4% 12.7%

PAT 305 539 1,195 17% 15%

PAT % 8.4% 8.8% 8.6%

Net Worth 1,608 3,274 5,989 13% 14%

Market Cap 7,135 29,253 72,272 20% 26%

Head count 3,090 4,974 5,970 4% 7%

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Operating Cash Flow Proceeds from Sylvania Others (including

Cash Generation ~Rs 8,300 crores

Capex Lloyd Acquisition Dividend

FY22 closing ~Rs 3,000 crores cash

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

A trusted & household

Well regarded for

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Ethics & Honesty Entrepreneurship

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Source: Internal & industry estimates

Switches Fans Wires

Motor Pump Cables

<5k cr 5-15k cr >15k cr

~75% Portfolio in High Growth

Switches Fans Wires

Motor Pump Cables

<5k cr 5-15k cr >15k cr

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Aspirational, informed &

Consumer Uniqueness Home IoT & smart connected homes

Traditional GTM relevant but

Competition GTM Follow the consumer – Omni

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Digital discovery + Physical

Brand Digital Deep consumer digital

Purpose Way of life

Talent Wealth creation ESG Adding real value to businesses

RETROSPECT INDUSTRY TRENDS MOVING AHEAD

Brand Distribution Manufacturing People