CHAPTER 1

1.1 Statement of Problem

Retail marketing is the range of activities undertaken by a retailer to promote

awareness and sales of the companys products. This is different from other
types of marketing because of the components of the retail trade, such as
selling finished goods in small quantities to the consumer or end user, usually
from a fixed location. Retail marketing makes use of the common principles of
the marketing mix, such as product, price, place and promotion. A study of
retail marketing at university level includes effective merchandising strategies,
shopping and consumer behavior, branding and advertising. Retail marketing is
especially important to small retailers trying to compete against large chain
stores.

1.2 Objective

To Analysis SDA-PG Retail Market.

To identify opportunity for Havells in Retail Business of SDA-PG

Products

1.3 Importance

Through the years retailing has evolved, competition has gotten stiff and
therefore marketing has become more integral in the direct selling of wares.
From specialty mom-and-pop shop to mass-merchants, the methods by which
stores are getting their products into the hands of customers are evolving.
Because customers have more choices, stores have to reach them with
advertising, entice them with promotions, and secure them with branding,
hence the ever-growing need for marketing in retail outlets.
Retail marketing is important to keep consumers updated on new local
1
available products as well as promotion of incentive sales for customer growth
and retention. Retailing in India is one of the pillars of its economy and
accounts for 14 to 15 percent of its GDP.

1.4 Research Methodology

PRIMARY SOURCES

Primary sources are those data which are collected by the researcher for the
first time. It is fresh in nature and is specially designed to fulfill the
requirement of the problem in hand. Survey method was used as means to
collect information and questionnaire was used as a medium to record the
information, the data was directly collected from the respondents through the
survey method with the help of questionnaire, which will be further processed
with Microsoft excel and analysis in form of charts, calculations and statements
will be used.

SECONDARY SOURCES
Secondary sources of information are that information which is gathered earlier
for some other purpose. In these study secondary sources such as web page
references, publications, etc were used.

Sample size

The study sample constitutes 50 respondents.

Sampling Area

The study is conducted in the Ernakulam district.

2
Research period

The research period of the study has from 20th June to 20th
July.

1.5 Scope

This study emphasis in the following scope:

It motivates carrier growth.

It helps to reach all the target customers.

The shopping time of the customers increases.

1.6 Limitations of the Study

To understand the organization and study its various functions and ups
and downs a period of 30 days is not enough.

Time consuming process.

CHAPTER 2
2.1 Literature Review

Marketing

Marketing is the process of communicating the value of a product or service

to customers, for the purpose of selling the product or service. It is a critical
business function for attracting customers.

From a societal point of view, marketing is the link between a societys

material requirements and its economic patterns of response. Marketing

3
satisfies these needs and wants through exchange processes and building long
term relationships. It is the process of communicating the value of a product or
service through positioning to customers. Marketing can be looked at as an
organizational function and a set of processes for creating, delivering and
communicating value to customers, and managing customer relationships in
ways that also benefit the organisation and its shareholders. Marketing is the
science of choosing target markets through market analysis and market
segmentation, as well as understanding consumer buying behaviour and
providing superior customer value.

There are five competing concepts under which organizations can choose to
operate their business; the production concept, the product concept, the selling
concept, the marketing concept, and the holistic marketing concept. The four
components of holistic marketing are relationship marketing, internal
marketing, integrated marketing, and socially responsive marketing. The set of
engagements necessary for successful marketing management includes,
capturing marketing insights, connecting with customers, building strong
brands, shaping the market offerings, delivering and communicating value,
creating long-term growth, and developing marketing strategies and plans.

Marketing research involves conducting research to support marketing

activities, and the statistical interpretation of data into information. This
information is then used by managers to plan marketing activities, gauge the
nature of a firm's marketing environment and attain information from suppliers.
Marketing researchers use statistical methods such as quantitative research,
qualitative research, hypothesis tests, linear regression, correlations, poisson
distributions, binomial distributions, etc. to interpret their findings and convert
data into information. The marketing research process spans a number of

4
stages, including the definition of a problem, development of a research plan,
collection and interpretation of data and disseminating information formally in
the form of a report. The task of marketing research is to provide management
with relevant, accurate, reliable, valid, and current information.

A distinction should be made between marketing research and market research.

Market research pertains to research in a given market. As an example, a firm
may conduct research in a target market, after selecting a suitable market
segment. In contrast, marketing research relates to all research conducted
within marketing. Thus, market research is a subset of marketing research.

RETAIL MARKETING

Definition
Retailing is defined as a conclusive set of activities or steps used to sell a
product or a service to consumers for their personal or family use. It is
responsible for matching individual demands of the consumer with supplies of
all the manufacturers. The word retail is derived from the French
work retailer, meaning to cut a piece off or to break bulk.

Retail marketing is comprised of the activities related to selling products

directly to consumers through channels such as stores, malls, kiosks, vending
machines or other fixed locations, according to the Free Dictionary. In contrast,
direct marketing to consumers attempts to complete a sale through phone, mail
or website sales.

The successful implementation of the components of the traditional marketing

mix (product, place, price and promotion) is essential for success in retail

5
marketing. The savvy marketer must have a thorough understanding of his or
her customers to answer the questions that are implied by each of the 4 P's.

Product

A retail business typically opens within a specific business category, such as

men's clothes. The retailer must decide questions relating to price
range, fashion and selection. All of these issues are answered by the
assumptions that the retailer makes on the products most likely to attract his
targeted customer base. The ability to match products and customers is as
much art as science.

Place

Factors such as whether the store location is near the target customer, offers
easy access and exit and is highly visible on a well-travelled street are vitally
important in the selection of a store location.

The perceived quality of the physical structure is also important. Customers

expect expensive items to be sold in an upscale environment. Low-cost items
might fare better in a location where consumers are accustomed to purchasing
those bargain items.

Price

Pricing is a complex process that combines finance with human psychology. If

consumers believe that a product is priced too high, they may refuse to buy. If
a product seems to be priced too low, they may suspect the product quality.

Additionally, a retailer typically sets price expectations as she develops her

brand. If the brand is positioned as discount, the merchant must stay consistent

6
with pricing decisions or risk customer confusion about the store's brand
identity.

Promotion

Retail marketing is dependent on in-store traffic. Marketers must make

effective use of promotions to ensure a steady stream of existing and new
customers visit a retail stores. The retailer's selection of promotional channels
is dictated by many factors including local competitive environment, profit
margin on sales and total volume of sales. Each dollar spent in promotions
must result in additional sales, or profit margins shrink to dangerous levels.
Promotional media can include television, radio, print, direct mail and outdoor
advertising (billboards).

The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and
distinct consumer preferences varying by each region necessitating a need for
localization even within the geographic zones. India has highest number of
outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft
(0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is
highest in the world. 1.8 million households in India have an annual income of
over 45 lakh (US$77,400.00).

While India presents a large market opportunity given the number and
increasing purchasing power of consumers, there are significant challenges as
well given that over 90% of trade is conducted through independent local
stores. Challenges include: Geographically dispersed population, small ticket
sizes, complex distribution network, little use of IT systems, limitations of
mass media and existence of counterfeit goods.

7
The Indian retail industry has been thrown open to foreign majors and is
packed with players who strive to offer great products and value-for-money to
Indian consumers. The country holds vast promise for retailers with its
burgeoning spending power and rising middle class.

The US$ 500 billion market, growing at an annual rate of about 20 per cent, is
largely dominated by small shops and stores as of now. The organised segment
is in its nascent stage and has huge potential to harness in the sub-continent.
Foreign giants like Wal-mart and IKEA have recently received the
Governments nod to enter the Indian market, after making all the necessary
compliances.

Market Size

Indias retail market is majorly dominated by the unorganised sector.

Organised segment accounts for 8 per cent of the total retail landscape,
according to a study by Booz & Co and RAI.

The Indian retail industry has expanded by 10.6 per cent between 2010
and 2012 and is expected to increase to US$ 750-850 billion by 2015,
according to another report by Deloitte. Food and Grocery is the largest
category within the retail sector with 60 per cent share followed by
Apparel and Mobile segment.

The foreign direct investment (FDI) inflows in single-brand retail trading

during April 2000 to December 2012 stood at US$ 95.36 million, as per
the data released by Department of Industrial Policy and Promotion
(DIPP).

8
Online Retail

Internet is the buzzword in India these days. People have online access 24x7
through their laptops, iPads and mobile phones. As a result they have continued
access to online retail markets as well.

Online retailers are emerging as important sales channels for consumer brands
in India as more and more people, especially the young generation, are
shopping online. From apparel to accessories, kids and infants product lines
and almost everything under-the-sun is available on the net these days. Apparel
and accessory brands, such as Puma, Nike and Wrangler, have recorded a big
increment in online sales in 2012, led largely by purchases from smaller towns
and cities with consumers paying the full price for these products.

For instance, footwear brand Nike has tie-ups only with online retailers such as
Myntra and Jabong. And in a very unique initiative, it recently launched its
new range of cricket gear on Jabong. Such partnerships turn out to be very
successful as online retailers provide greater visibility than a physical store.
"Our online store can carry around 10,000 options, while an offline store can
carry only 20 per cent of a given range," said an official.

Online retail in India is projected to grow to US$ 76 billion by 2021,

accounting for over 5 per cent of the Indian retail industry, according to a
report by advisory services firm Technopak. This forecast is encouraging more
companies- big and small- to sell aggressively online. Experts believe that
much of this growth will come from the rising purchasing power of consumers
in smaller cities, who do not have access to brick-and-mortar stores stocking
high-end brands.

9
Retail Industry: Key Developments and Investments

Kottayam, in Thiruvananthapuram, is an emerging market for luxury

cars. BMW has launched its mobile showroom in the city wherein
people can check-out the brands models and go-in for a test drive as
well. A weather-proof and air-conditioned structure, the mobile
showroom is a replica of BMWs luxurious dealerships.

Hindustan Unilever (HUL), India's largest packaged consumer goods

firm, will soon launch the country's first liquid laundry detergent, hoping
that wealthy consumers will not be hesitant to pay a premium for a
product that promises to make their laundry chore easier.
With 90 per cent penetration in the core detergent space, HUL is trying
to create newer consumption opportunities in the over Rs 15,000 crore
(US$ 2.51 billion) laundry market with niche and premium products
including Comfort fabric conditioner and Rin liquid blues in the post-
wash segment.

Villeroy & Boch AG, the Germany-based bath, wellness and tableware
firm, has partnered with Delhi-based Genesis Luxury Fashion to
commence its operations in single-brand retail trade in India.
Villeroy & Bochs application, seeking 50 per cent equity in the joint
venture (JV) company for single-brand retail trade, has recently got a
nod from the Foreign Investment Promotion Board (FIPB). The FDI
infusion in the JV would be to the tune of Rs 1.12 crore (US$
187,463.60).
Genesis Luxury Fashion, that has brands such as Paul Smith, Bottega
Veneta, shoe brand Jimmy Choo, Italian label Etro and Armani and
home and personal care products from Crabtree and Evelyn under its

10
 business in India, will exclusively manage the distribution of Villeroy &
Boch tableware products in the country. The alliance ensures the
establishment of a distribution network through the opening of Villeroy
& Bochs exclusive retail stores in India.

In a bid to tap the branded footwear market in India, which is estimated

to be about Rs 30,000 crore (US$ 5.02 billion), Aero Group (known for
its flagship Woodland brand) is planning to revive one of its old brands,
Woods. The company is contemplating to open around 30 new,
revamped Woods stores in 2013. The eight-year-old brand would now
lay its focus on the fashion quotient, rather than the typical outdoor,
rough and tough image of Woodland, and will have more of the range
for women.

RP-Sanjiv Goenka Groups company Spencers Retail is on an

aggressive growth strategy, with a focus on hyper-format stores. The
company intends to infuse about Rs 600 crore (US$ 100.46 million) in
setting up new stores and come out with branded and co-branded
products in the food and beverage segment. One of the official
spokesperson from the company revealed that Spencers would set up 80
hyper stores in the next 48 months. As of now, the company has 132
stores, including 26 hyper stores, 14 super market and 92 daily
(convenient) stores.

Godrej Interio, the furniture retailing arm of Godrej Group, is aiming for
Rs 5,000 crore (US$ 837.14 million) of turnover by 2016-17, with plans
to invest over Rs 300 crore (US$ 50.23 million) to expand
manufacturing capacity and retail stores. The company is planning to set
up more than 75 stores in 2013 itself with focus on tier II and III cities.

11
 The Indian branded furniture market is worth about Rs 10,000 crore
(US$ 1.67 billion) out of which Godrej Interio accounts for 15 per cent
of the share. The company also plans to establish 200 speciality stores
which will design and built products according to the consumer's
convenience and preference.

Growth over 1997-2010

India in 1997 allowed Foreign Direct Investment (FDI) in cash and carry
wholesale. Then, it required government approval. The approval requirement
was relaxed, and automatic permission was granted in 2006. Between 2000 to
2010, Indian retail attracted about $1.8 billion in foreign direct investment,
representing a very small 1.5% of total investment flow into India.

Single brand retailing attracted 94 proposals between 2006 and 2010, of which
57 were approved and implemented. For a country of 1.2 billion people, this is
a very small number. Some claim one of the primary restraint inhibiting better
participation was that India required single brand retailers to limit their
ownership in Indian outlets to 51%. China in contrast allows 100% ownership
by foreign companies in both single brand and multi-brand retail presence.

Indian retail has experienced limited growth, and its spoilage of food harvest is
amongst the highest in the world, because of very limited integrated cold-chain
and other infrastructure. India has only 5386 stand-alone cold storages, having
a total capacity of 23.6 million metric tons. However, 80 percent of this storage
is used only for potatoes. The remaining infrastructure capacity is less than 1%
of the annual farm output of India, and grossly inadequate during peak harvest

12
seasons. This leads to about 30% losses in certain perishable agricultural output
in India, on average, every year.

Indian laws already allow foreign direct investment in cold-chain infrastructure

to the extent of 100 percent. There has been no interest in foreign direct
investment in cold storage infrastructure build out. Experts claim that cold
storage infrastructure will become economically viable only when there is
strong and contractually binding demand from organized retail. The risk of
cold storing perishable food, without an assured way to move and sell it, puts
the economic viability of expensive cold storage in doubt. In the absence of
organized retail competition and with a ban on foreign direct investment in
multi-brand retailers, foreign direct investments are unlikely to begin in cold
storage and farm logistics infrastructure.

Until 2010, intermediaries and middlemen in India have dominated the value
chain. Due to a number of intermediaries involved in the traditional Indian
retail chain, norms are flouted and pricing lacks transparency. Small Indian
farmers realize only 1/3rd of the total price paid by the final Indian consumer,
as against 2/3rd by farmers in nations with a higher share of organized
retail. The 60%+ margins for middlemen and traditional retail shops have
limited growth and prevented innovation in Indian retail industry.

India has had years of debate and discussions on the risks and prudence of
allowing innovation and competition within its retail industry. Numerous
economists repeatedly recommended to the Government of India that legal
restrictions on organized retail must be removed, and the retail industry in
India must be opened to competition. For example, in an invited address to the
Indian parliament in December 2010, Jagdish Bhagwati, Professor of
Economics and Law at the Columbia University analysed the relationship

13
between growth and poverty reduction, then urged the Indian parliament to
extend economic reforms by freeing up of the retail sector, further
liberalization of trade in all sectors, and introducing labor market reforms.
Such reforms Professor Bhagwati argued will accelerate economic growth and
make a sustainable difference in the life of India's poorest.

A 2007 report noted that an increasing number of people in India are turning to
the services sector for employment due to the relative low compensation
offered by the traditional agriculture and manufacturing sectors. The organized
retail market is growing at 35 percent annually while growth of unorganized
retail sector is pegged at 6 percent.

The Retail Business in India is currently at the point of inflection. As of 2008,

rapid change with investments to the tune of US $ 25 billion were being
planned by several Indian and multinational companies in the next 5 years. It is
a huge industry in terms of size and according to India Brand Equity
Foundation (IBEF), it is valued at about US$ 395.96 billion. Organised retail is
expected to garner about 16-18 percent of the total retail market (US $ 65-75
billion) in the next 5 years.

India has topped the A.T. Kearneys annual Global Retail Development Index
(GRDI) for the third consecutive year, maintaining its position as the most
attractive market for retail investment. The Indian economy has registered a
growth of 8% for 2007. The predictions for 2008 is 7.9%. The enormous
growth of the retail industry has created a huge demand for real estate. Property
developers are creating retail real estate at an aggressive pace and by 2010, 300
malls are estimated to be operational in the country.

14
Growth after 2011
Before 2011, India had prevented innovation and organized competition in its
consumer retail industry. Several studies claim that the lack of infrastructure
and competitive retail industry is a key cause of India's persistently high
inflation. Furthermore, because of unorganized retail, in a nation where
malnutrition remains a serious problem, food waste is rife. Well over 30% of
food staples and perishable goods produced in India spoils because poor
infrastructure and small retail outlets prevent hygienic storage and movement
of the goods from the farmer to the consumer.

One report estimates the 2011 Indian retail market as generating sales of about
$470 billion a year, of which a minuscule $27 billion comes from organized
retail such as supermarkets, chain stores with centralized operations and shops
in malls. The opening of retail industry to free market competition, some claim
will enable rapid growth in retail sector of Indian economy. Others believe the
growth of Indian retail industry will take time, with organized retail possibly
needing a decade to grow to a 25% share. A 25% market share, given the
expected growth of Indian retail industry through 2021, is estimated to be over
$250 billion a year: a revenue equal to the 2009 revenue share from Japan for
the world's 250 largest retailers.

The Economist forecasts that Indian retail will nearly double in economic
value, expanding by about $400 billion by 2020. The projected increase alone
is equivalent to the current retail market size of France.

15
CHAPTER 3

3.1 INDUSTRIAL PROFILE

The worldwide electric power industry provides a vital service to modern life.
It provides the nation with the most prevalent energy form known in history
electricity. It advances the nations economic growth and productivity;
promotes business development and expansion; and provides solid employment
opportunities to workers globally in general and India in particular. It is a
robust industry that contributes to the progress and prosperity of our nation.
Today the electric power industry operates in a hybrid model of competition
and regulation. The worldwide electrical and electronics industry is growing at
a fast pace. It consists of manufacturers, suppliers, dealers, retailers,
electricians and electronic equipment manufacturers.

Electrical industry has come out of the regulated and proprietary industry to
de-regulated, buoyant and competitive industry. Private companies entered the
market and opened stiff competition after privatization and liberalization which
have taken place in several countries. The liberalization of the electric industry
showed the expansion and development. Electricity has been one of the most
promising and challenging industries that have helped in shaping national
economy.

Electricity industry has been segmented in three basic parts like manufacturing,
supply, and transmission, though transmission and distribution continue to be
controlled in order to balance supply and demand so that transmission stability
can be preserved. Because of liberalization, at retail level, choice of electricity
providers has been increased and as a result, customers can take advantage
through switching over to a retailer who can offer electric power at lower price.

16
Uses of petrochemicals are paramount in electrical industry so as to improve
electrical manufacturing processes. The petrochemical industry mainly deals
with electrical equipments required to produce and distribute electricity. These
petrochemical products are vital for producing different electrical equipments
as it helps in insulation, prevention of loss of energy, and safety.

Electrical components are found in different types of electrical devices and a

fundamental building block. Electrical components are connected with each
other as well as number of other devices.

Electrical component either with the help of solders or printed circuit board is
connected to the electronic circuit board to perform different function.

Electrical Components Types

Active electrical component

Passive electrical component

Active electrical component has gain or directionality

Passive electrical component is without gain or directionality

Electrical Components Include

Wires and Cables - These conduct electrical current

Terminals and connectors - For electrical connections

Cords and cables - These make connections and have connectors or terminals
at their ends

Switches - conductive or non conductive

Resistors - for dissipating heat or energy

17
Protection devices - protect electrical components and circuit from extra
voltage

Capacitors - for the storage of electrical charge in an electrical field

Magnetic or inductive devices or electrical components - for magnetism

Networks or components using one type of passive component,

Power sources or sources of electrical power

Transducers, Sensors and detectors

Solid state components

Semiconductors, diodes, transistors, integrated circuits, hybrid circuits

There is a huge industry of electrical components and electrical component

manufacturers, suppliers, exporters. Global demand for various kinds of
electrical components is increasing with the ongoing expansions and inventions
in information technology, wireless devices and other electronic devices.
Developed countries have huge market for the electrical component but the
growth rate is slow in comparison to developing countries where market is
small. North America has the biggest electrical component market followed by
Europe and Japan. Asia Pacific region comes after that. Also the countries that
are highly industrialized have bigger market of electrical component than the
newly industrializing countries.

INTERNATIONAL SCENARIO

Top three electrical and electronic goods manufacturing countries in the world
are: United States of America, Japan and Korea respectively. The United States
of America being the largest producer of electronic products worldwide

18
contributes the total share of around 21%. Furthermore, USA is at the forefront
to have the largest market share with around 29% in the global market.

The World's electrical market size was $1508.6 billion in 2010, since last year
an increase of 14.6% is forecasted to grow even more. The industrial electrical
goods industry size was $951.3 billion, contributing around 68.7% of the total.
With regard to electronics parts and components sector, the total market share
was around $382.7 billion i.e. 31.3% while home electronics was $ 174.6
billion. This figure is supposed to increase in this decade.

The industrial & commercial sector will see the strongest gains as cogeneration
proliferates and products such as high voltage transformers become more
common outside of the utility sector.

According to recent market studies, the office construction in 2009 had an

advanced growth and this trend will continue till 2015. In USA only, the
market is expected to grow by 2% every year. The growth in the construction
sector will be fruitful and profitable for the electrical hardware industry
worldwide in the future. According to the industry expert the growth in
construction market will draw a major growth in the electrical hardware
industry in the next few years.

Major technological improvements taking place in the electrical industry are:-

1.Transmission of power: - The transmission voltage for power has been hiked
to 400 Kilo Volts to reduce transmission losses and the cost of transmission.
This has substantially reduced the size of conductors used in transmission lines.
2. Low Voltage consumer electrical:- There are tremendous improvements
going on in the development of more power efficient electrical equipment in all
segments.

19
This is due to multiple driving forces such as

a) Conservation of scarce power

b) Reduction in unnecessary load on the Power distribution grid

c) Reduction in energy bills for the consumers

d) Environmental concerns and so forth.

Technological advancements in electrical and electronic equipments have

provided the basis for steady industry expansion over the outlook period. As
the world fills with more and more mod-cons, specialized electrical contractors
are required for both instillation and maintenance. At the same time
advancements in installation techniques and business technology has assisted
in improving work efficiency.

Today, the electrical industry is experiencing phenomenal and remarkable

changes worldwide. The worldwide electrical industry is distinguished by fast
technological advances and has grown rapidly than most other industries over
the past 30 years.

INDIAN SCENARIO

Indias Electricity is set to see a huge boom as the 9-10% economic growth
rates require massive amounts of energy. India is planning to nearly treble its
electricity capacity to almost 450 GW by 2020 from around 240 GW now
which means a yearly addition of nearly 27 GW in the next decade. Currently
Indias Electricity comes mostly from Coal and Hydro Based Energy. Almost
50% of Energy Requirements and 53% of the Electricity is generated from
Coal. Despite Coal being the dirtiest Form of Energy, India has got little choice
in the matter. Most of Indias upcoming Electricity Plants are based on Coal.
Hydro Energy is generated mostly from Indias Northern Himalayan States.
20
Renewable Energy forms only 7.7% of the Capacity with around 11 GW of the
16 GW from Wind Energy. Nuclear Energy is around 3% of the total capacity
at around 4.5 GW.

The Indian electrical equipment industry is currently facing very challenging

times. The industry has registered a moderate 9% growth in the first half (H1)
of the current financial year, 2011-2012. The second quarter (Q2) FY12
growth has decelerated to just 4.14% from 13.82% clocked in the first quarter
(Q1) of FY12. Current export-import trends based on select major ports trade
data indicates alarming growth of almost 20% in imports; especially from
China, South Korea, Germany and other EU countries. The adverse domestic
economic situation due to high inflation, high interest costs, credit squeeze etc.
is having a significant adverse effect on the bottom line of the industry; apart
from intense overseas competition. This situation is getting exacerbated by the
turmoil in the global economy. Prices of key inputs / raw material, especially
which are imported in large quantities, are on an upward trend. Stiff
competition in the domestic market from foreign suppliers and also in global
markets is eroding the price competitiveness of Indian manufacturers. All three
segments of the power sector - generation, transmission and distribution are
facing several challenges which need to be addressed expeditiously by the
government to restore the confidence. The entire power sector value chain
crucially hinges on the financial viability of the power distribution sector and
we need to focus on improving its performance, especially of the government-
owned power distribution utilities, and reducing the aggregate technical &
commercial (AT&C) losses. The government also needs to address in a
concerted manner the problems plaguing the generation sector which are
impacting our ability to meet capacity addition targets.

21
The Indian Electrical industry is now finding a good response for its products
in the international markets. The industry has invested in upgrading technology
and improvements in quality systems so that it is able to offer products/systems
contemporaneous to what the developed countries make at much lower price.

Electricity has become an inseparable part of our daily life. In homes, offices,
industries and hospitals they are myriad systems, equipment and sophisticated
appliances that depend on electrical energy.

Electrical equipment such as motors, transformers, switchgears etc. are used by

all sectors of the Indian economy. Some major areas where these are used are
the multi-core projects for power generation including nuclear power stations,
petrochemical complexes, chemical plants, integrated steel plants, non-ferrous
metal units etc.

Indian electrical industry has grown because of governments thrust on it and

also due to overall economic growth. It has also reached a stage where the
industry has demonstrated its capabilities. The industry has seen a growth of
25% and it will continue for the next few years.

There are certain factors that govern the growth of Indian electrical industry:

R&D played an important role in increasing productivity

Foreign investments accelerated growth in production and export.

Increase in income changed the living standards of the common people.
Asia- Pacific region is emerging as the most spinning place for the
consumer electronics industry, as the markets remain still unreached.
Innovation led to a consistent demand for newer products.

22
There is huge opportunity for the growth of electrical industry, in power
generation, transmission, distribution or its usage & control.
Demand for all kind of electrical products is poised to grow at a rapid rate on
account of:

1. Greater emphasis laid by the government on

(a) Generation of additional power.

(b) Transmission of power safely to the end consumers.

(c) Minimizing T&D losses.

2. Massive growth in all sectors of economy, particularly, infrastructure and

real estate, hospitality and medical services.

3. Continuous development of more power efficient products which may

replace most of the existing installations in less than a decade.
It is estimated that the electrical industry would grow by 100% in next 4 years.
Indian government has envisioned augmentation in the capacity of power
generation would be 86,500 MW in 12th plan period. A blueprint for
investment is drafted for the distribution & transmission segments with an eye
to domestic electricity plan and the Integrated Energy Policy. Enforcement of
Electricity Act 2003, National Electricity Policy-2005 and proposal of schemes
like the APDRP(Accelerated Power Development and Reform Program) &
RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana) are meant for reducing
loss that takes place in transmission and distribution annually owing to
traditional & degraded lines, overloading of the 11 KV systems, distribution
transformers and low tension lines and understanding the intricacy of the
various factors and its impact on the demand for electrical equipment. IEEMA
(Indian Electrical and Electronics Manufacturers Association) opted private
23
company (PWC) Price water house Coopers for evaluating the power sector
development program and its impact on electrical device & equipment
industry.

Government of India offers central support for strengthening and elevation of

transmission and distribution network. 25% of the project cost is provided as
Additional central plan assistance in form of Grant to the state utilities.

Electrical industry has come out of the regulated and proprietary industry to de-
regulated, buoyant and competitive industry. Private companies entered the
market and opened stiff competition after privatization and liberalization which
have taken place in several countries. These have shifted government
ownership and regulation to the private players and enabled them to restructure
the industry. Such changes were actually encouraged by the notion that state
proprietary & cost control caused ineffective operation, slap-dash supply and
poor investment decision, that were a real obstruction on the development of
the industry, but the liberalization of the electric industry showed the expansion
and development. Electricity has been one of the most promising and
challenging industries that have helped in shaping national economy.

Electricity industry has been segmented in three basic parts like manufacturing,
supply, and transmission, though transmission and distribution continue to be
controlled in order to balance supply and demand so that transmission stability
can be preserved. A number of laws have been enacted in order to tout greater
competition in wholesale electricity because bulk electricity is dealt in through
long-term contract, therefore it is important to stabilize the transmission so
demand can be fulfilled and more efficient power can be brought in at lower
rate. Because of liberalization, at retail level, choice of electricity providers has

24
been expanded; as a result, customers can take advantage through switching
over to a retailer who can offer electric power at lower price.

The 11th Plan period is on the verge of completion and the 12th Plan (2012-
2017) throws huge opportunities for growth with envisaged investment of USD
300 billion in the power sector. To sustain the envisaged annual GDP growth
rate of around 8-9% over the next 20 years, it has been estimated that India will
have to increase its electricity generation capacity from around 180 GW
presently to over 800 GW by 2032. This would require a matching up
gradation and enhancement of the electricity T&D segment. Per capita
consumption of electricity (734 kwh) is around one-fourth of the global
average (2,782 kwh). With this huge latent demand for electricity in the
country, the sector can only grow in the future. The electrical equipment sector
is of strategic national interest. If India wants sustained high economic growth,
it needs to address its huge infrastructure deficit, especially its power demand
and supply imbalance. Assured availability of quality power at reasonable cost
will not only act as a catalyst in the socio-economic development of the nation
but also enhance the global competitiveness of the domestic industry leading to
greater employment generation and higher levels of per capita income.
Presently, Indian exports of electrical equipment are less than 1% of the global
trade. With the electricity sector being a sunrise sector across the entire
developing world, there also exists a significant export potential for the
domestic industry. Given this scenario, there is tremendous opportunity for the
growth of the domestic electrical equipment industry, including SMEs.

In a May 2011 report, India's Central Electricity Authority anticipated, for

201112 year, a base load energy deficit and peaking shortage to be 10.3% and
12.9% respectively. The peaking shortage would prevail in all regions of the

25
country, varying from 5.9% in the North-Eastern region to 14.5% in the
Southern Region. India also expects all regions to face energy shortage varying
from 0.3% in the North-Eastern region to 11.0% in the Western region. India's
Central Electricity Authority expects a surplus output in some of the states of
Northern India, those with predominantly hydropower capacity, but only
during the monsoon months. In these states, shortage conditions would prevail
during winter season. According to this report, the five states with largest
power demand and availability, as of May 2011, were Maharashtra, Andhra
Pradesh, Tamil Nadu, Uttar Pradesh and Gujarat.

In late 2011 newspaper articles, Gujarat was declared a power surplus state,
with about 23 GW more power available than its internal demand. The state
was expecting more capacity to become available. It was expecting to find
customers, sell excess capacity to meet power demand in other states of India,
thereby generate revenues for the state.

Despite an ambitious rural electrification program, some 400 million Indians

lose electricity access during blackouts. While 80% of Indian villages have at
least an electricity line, just 52.5% of rural households have access to
electricity. In urban areas, the access to electricity is 93.1% in 2008. The
overall electrification rate in India is 64.5% while 35.5% of the population still
lives without access to electricity.

According to a sample of 97,882 households in 2002, electricity was the main

source of lighting for 53% of rural households compared to 36% in 1993.The
17th electric power survey of India report claims

Over 201011, India's industrial demand accounted for 35% of electrical

power requirement, domestic household use accounted for 28%,

26
 agriculture 21%, commercial 9%, public lighting and other
miscellaneous applications accounted for the rest.

The electrical energy demand for 201617 is expected to be at least 1392

Terra Watt Hours, with a peak electric demand of 218 GW.

The electrical energy demand for 202122 is expected to be at least 1915

Terra Watt Hours, with a peak electric demand of 298 GW.

If current average transmission and distribution average losses remain same

(32%), India needs to add about 135 GW of power generation capacity, before
2017, to satisfy the projected demand after losses. India's demand for
electricity may cross 300 GW, earlier than most estimates. To explain the
estimates, the four reasons are:

India's manufacturing sector is likely to grow faster than in the past

Domestic demand will increase more rapidly as the quality of life for
more Indians improve

About 125,000 villages are likely to get connected to India's electricity

grid

Currently blackouts and load shedding artificially suppresses demand;

this demand will be sought as revenue potential by power distribution
companies

27
3.2 COMPANY PROFILE
THE ORGANISATION-A General Description

Havells India Ltd is a billion-dollar-plus organization, and is one of the largest

& India's fastest growing electrical and power distribution equipment
manufacturer with products ranging from Industrial & Domestic Circuit
Protection Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL
Lamps, Luminaries for Domestic, Commercial & Industrial applications,
Modular Switches, Water Heaters and Domestic Appliances covering the entire
gamut of household, commercial and industrial electrical needs.

Havells owns some of the prestigious global brands like Crabtree, Sylvania,
Concord, Luminance, Linolite & Standard.

With 94 branches / representative offices and over 5000 professionals in over

50 countries across the globe, the group has achieved rapid success in the past
few years. Its 12 state-of-the-art manufacturing units in India located at
Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and 6 state-of-the-art
manufacturing plants located across Europe, Latin America & Africa churn out
globally acclaimed products. Havells is a name synonymous with excellence
and expertise in the electrical industry. Its 20000 strong global distribution
network is prompt to service customers.

The company has acquired a number of International certifications, like CSA,

KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING
(Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various
products. Today, Havells and its brands have emerged as the preferred choice
of electrical products for discerning individuals and industrial consumers both
in India and abroad.

28
In an attempt to transform itself from an industrial product company to a
consumer products company, Havells launched the consumer electrical
products such as CFLs, Fans, Modular Switches, Luminaires, Water Heaters
and Domestic Appliances. The company has been consistent in its brand
promotion with sponsorship of Cricket events like T20 World Cup, India-
Australia Series and IPL Season 1 till season 5.

The company has also taken the initiative to reach directly to the consumers
through "Havells Galaxy" a one stop shop for all electrical and lighting
needs. Havells has more than 100 such Galaxies across the country.

Social and environmental responsibility has been at the forefront of Havells

operating philosophy and as a result the company consistently contributes to
socially responsible activities. For instance, the company is providing mid-day
meal in government schools in Alwar district, covering 30000 students per day.
Besides this company has acquired land for constructing a larger kitchen with
all the modern facilities to serve freshly cooked food to 50000 students in the
area. Havells runs a mobile Medical Van, equipped with a trained doctor and
necessary medicines in the rural areas of Delhi & NCR for the very poor and
needy villagers. We also set up free medical check-up camps. In the past also,
the company has generously contributed to the society during various national
calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund etc.

The essence of Havells success lies in the expertise of its fine team of
professionals, strong relationships with associates and the ability to adapt
quickly and efficiently, with the vision to always think ahead.

29
BOARD OF DIRECTORS

Mr. Qimat Rai Gupta (Chairman &Managing Director)

Mr. Anil Gupta (Joint Managing Director)

Mr. Surjit Gupta (Director)

Mr. Rajesh Gupta (Director Finance)

Mr. S.B.Mathur (Director)

Dr. Abid Hussain (Director)

Mr. A.P.Gandhi (Director)

Mr. Nitan Malhan (Director)

Maj.Gen.D.N. Khurana (Director)

Mr.V.K.Chopra (Director)

COMPANY VISION

To be a globally recognized corporation that provides best electrical & lighting

solutions, delivered by best-in-class people.

C O MP A N Y MI S S I O N
To achieve our vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our
associates, customers, partners, and employees.

C O MP A N Y V AL U E S

Customer Delight: A commitment to surpassing our customer expectations.

Leadership by example. A commitment to set standards in our business and

transactions based on based on mutual trust.

30
Integrity and Transparency: A commitment to be ethical, sincere and open in
our dealings.

Pursuit of Excellence: A commitment to strive relentlessly, to constantly

improve ourselves, our services and products so as to become the best in class.

CHAIRMANS PROFILE

Mr. Qimat Rai Gupta is the founder chairman and managing director of
Havells India Ltd. In the summer of 1958, a 21-year-old school teacher traded
education for entrepreneurship in the electric wholesale market in Old Delhi.
Driven more than by the economic necessity of helping his family, Qimat Rai
Gupta swapped the security of a classroom in Punjab for the uncharted waters
of a small trading company selling fixtures and electric cables in and around
Delhi. With an investment of Rs.10000, he started Guptajee. His leadership
and vision led him to create QRG Enterprises as one of the players in the
power distribution equipment industry as well as make its mark on the global
space.

His belief in team work, implementation of the decisions, communications and

transparency through ethical values, business integrity and technological
expertise have made the QRG group and especially Havells India Ltd, the
largest player low voltage power distribution equipment industry in India and a
name to reckon within the global market.

The group's phenomenal success over the years has been due to Mr. Qimat Rai
Gupta's mantra of "growth through quality, innovation and market
consolidation". His focus on research and development has enabled the group
to develop products for consumers that offer great value for money. His
constant emphasis on promoting energy conservation and environmental

31
preservation coupled with his philanthropic service to the economically weaker
section of the society is his way of giving back in return to the society that has
helped the organization realize the potential.

Mr. Gupta has held various responsible positions in Trade and Commercial
associations of the Industry from time to time. He has, in his past, served as the
President of Federation of All India Electrical and Trade association.
Mr.Qimat Rai Gupta has been recognized by various sections of the industry
for his path breaking work in this segment. Amongst the acknowledgments
bestowed upon him, Mr.Gupta received the Self-made Entrepreneur Award
"Udyog Patra" in 1989, Distinguished Entrepreneurship Award 2004, from the
PHD Chamber of Commerce and Industry in 2004, Udyog Vibhushan from the
Institute of Trade & Industrial Development, Delhi in 2005 and Udyog Ratna
from PHD Chamber of Commerce & Industry for Economic Contribution to
Uttaranchal State in 2005.

QRG ENTERPRISE

QRG Group, a billion dollar plus organization which ranks among the top
electric product companies in the world and is a major domestic and global
player in the production and sales of an impressive range of electrical products
ranging from electric cable to sophisticated switchgears to lighting systems and
fans. Its manufacturing products ranges from building circuit protection
equipment, industrial and domestic switchgear, cables and wires, energy
meters, modular switches, fans, CFLs luminaries for domestic, industrial and
commercial application, lighting products and bath fittings.

32
The group comprises of 4 companies:

Havells India Limited

Havells Sylvania
Crabtree
Standard Electricals
The flagship company, Havells is acknowledged as a manufacturer and
supplier of the widest range of low voltage electrical equipment and has
become a name synonymous with excellence and expertise in the industry.

QRGs legendary customer focus empowers its people to build sturdy and
lasting relationships with its business partners, employees and customers thus
paving the way for unparalleled future growth. Dealers from the core of the
company and have a well organized distribution network of over 3000 dealers
and more than 4000 retail outlets in India with which the company is able to
meet its customer demand.

QRGs International Business Division (IBD) is a dynamic team of

professionals who are committed to fulfill the aspirations of the organization in
the international markets. IBD caters its international clientele spread over 51
countries with offices in Dubai, China, Nigeria and distribution networks in all
major countries. Despite the intense competition in the global electrical
industry.

Innovation is the hallmark of every vital development at QRG. A new idea,

inventions deepen scientific knowledge and gives its workforce a new impetus
towards technical progress. The responsibility of providing its customers the
best products and zero defect services to enable them to be comfortable and
secure in usage of electricity.

33
1. Havells Sylvania
SYLVANIA is one the worlds largest manufacturers of artificial light sources.
It has a broad product offering from incandescent light bulbs, halogen and low-
energy lamps for the customer market, fluorescent lamps, HID lamps and
various special products for the specifier. Sylvania lamps are distributed from
stock, through their national sales operations, as well as via individual
countries professional distribution channels including wholesalers, specifiers
and installers. In the domestic and residential market, Sylvania lamps are
available across Europe from leading lighting and department store
retailers.SLI Sylvania is a leading global designer and supplier of lighting
systems with world-wide operations. The group has its main presence in
Europe and Latin America with focus on growth on Asia and Middle East.

2. Crabtree
Customer first has always been the core philosophy at Crabtree. For more
than 7 years in India now, the company has emerged as a premium brand in the
modular switch industry. Crabtree Modular Switches are a preferred choice for
homes, offices and the industry which has made it the fastest growing company
in its industry.

Available in 8 sterling ranges, each Crabtree switch blends together the best of
engineering with style and elegance. Manufactured in an ISO 9001 certified
facility at Baddi in Himachal Pradesh, the plant follows quality systems of
Group Electrium, which are even more stringent than the standards prescribed
by the Bureau of Indian Standards.

Microprocessor machines have been installed in every manufacturing plant to

ensure high levels of precision and consistent quality during production cycles.
Also, a full ten year warranty is offered on the entire range of switches.

34
Crabtree realized that there has been an aesthetic turnaround of interior spaces
like the bathroom from being functional to designer. Today bathrooms are
objects of pride, to be decorated stylishly and make strong individual
statements. This led to the launch of Crabtree - a complete range of world class
luxury bath fittings and accessories. Inspired by the brilliance of Italian design,
each Crabtree product adds style, elegance and a sense of personality to the
bathroom.

High professionalism & product quality with the backup of QRG Enterprise
have made Crabtree a distinguished company. Production in Crabtree is a
symbiosis between advanced technology, maximum functionality and aesthetic
designing to match the taste of the discerning clientele. The state-of-the-art
plant situated at Bhiwadi, Rajasthan is a unique fusion of the best human and
technical resources.Today, Crabtree is committed to meeting the challenges of
the new economy through business ethics, global reach and technological
expertise.

3. Standard Electricals
Standard Electricals Limited (SEL) established in 1958 in Jalandhar (Punjab),
today as a c ompany has carved a niche in the switch gear market by constantly
creating innovative solutions and upgrading the product range to meet the ever
changing needs of ever discerning customers. SEL started its manufacturing
operations with conventional rewireable switch fuse unit over four decades
ago. Its product range today includes highly sophisticated domestic &
industrial products such as MCBs, RCCBs, Distribution Boards (DB), MCCBs,
RCBOs change over switches, switch disconnector fuses (SDFs), HRC fuses,
CFLs etc.

35
All its products are designed to comply with major Indian & International
specifications and are tested at ERDA laboratories. The quality control systems
of the company have been audited by the UK and the company is certified for
ISO 9001:2000. MCBs are CSA, KEMA marked are being exported to many
European & Middle East countries.

SEL has manufacturing plants in Jalandhar (Punjab) & Haridwar (Uttarakhand)

with a work force of over 600 people including many qualified engineers.
Standard Electricals has wide customer base through its nationwide marketing
network of 15 branch offices, 35 resident representative offices, 750 authorized
dealers and 6000 strong retail outlets in all major cities in India for effective
sales & services. SEL holds certain unbeatable advantages like expertise in LT
switch gear since last four decades with technology, excellent brand
perception, wide dealer network, excellent after sales service and value for
money and to its customers.

CORPORATE SOCIAL RESPONSIBILITY (QRG Group)

While it acquires companies and builds internally, QRG Group never loses
sight of its responsibility as a good corporate citizen. Shri Qimat Rai Gupta,
believes that serving people with no means is the duty of every well-to-do
person.

For instance, the company is providing mid-day meals to around 350

government schools in Alwar district, covering 30000 students per day. Havells
has a spacious kitchen with modern kitchen equipment and utmost care is taken
in terms of hygiene while preparing and serving food. This has greatly
increased the number of children attending school regularly and also alleviates
hunger. Besides this the company has acquired land for constructing a larger
kitchen with all the modern facilities to serve freshly cooked food to 50000
36
students in the area.
Havells runs a mobile Medical Van, equipped with a trained doctor and
necessary medicines in the rural areas of Delhi & NCR for the very poor and
needy villagers. The company also set up free medical check-up camps. In the
past also, the company has generously contributed to the society during various
national calamities like the Bihar Flood, Tsunami and Kargil National Relief
Fund. Corporate Social Responsibility (CSR) at QRG portrays the deep
symbiotic relationship that the group enjoys with the communities it is engaged
with. As a responsible corporate citizen, we try to contribute for social and
environmental causes on a regular basis.

CORPORATE GOVERNANCE

The QRG Group defines corporate governance strategically, which

encompasses not only what we do as a company with our profits, but also how
we make them. It goes beyond philanthropy and compliance and addresses how
our company manages its economic, social, and environmental impacts, as well
as its relationships in all key spheres of influence: the workplace, the
marketplace, the supply chain, the community, and the public policy realm.

Havells as a company have been in lead in offering a portfolio of eco

responsible products and services that deliver powerful, sustainable, energy-
efficient solutions that don't compromise on capacity and security. Their eco
responsibility initiative also focuses on how they run their business, and
includes efforts to develop an alternative-energy strategy, and thus reduce the
environmental impact of their operations. They strive to bring corporate
responsibility to every aspect of their business. They are committed to
managing a responsible and diverse supply chain that's consistent with their
high standards for environmental and business practices.

37
Breaking down the barriers that constrain innovation is a challenge; Havells
have readily embraced right from the start. Their ability to build communities
and promote the exchange of ideas through assistive technologies, participation
programs, and standardization is transforming the way people experience their
products. They offer their customers holistic energy-efficient solutions,
enabling them to not only save money and protect their capital investment, but
also lower their energy usage and protect the environment, thus fulfilling their
CSR responsibility of sustenance of depleting environmental resources.

An implicit sense of ethical business conduct has been the cornerstone of the
QRG way on corporate governance. On issues ranging from customer care and
business excellence to financial propriety and more, explicit rules and
regulations supplement the traditional values on which their group companies
have been shaped. This is what they have endeavoured to do in the 50 years of
their existence. Their values of understanding, trust, integrity and ethics have
served them in good stead.

Corporate governance as practiced by their Group translates into being fair and
civic-minded, fulfilling our duties to the entire spectrum of stakeholders, and,
most importantly, making integrity an article of faith across all our operations.
The group's adherence to ethical business conduct is rooted in the vision of its
Founder Mr Qimat Rai Gupta. They started on sound and straightforward
business principles, considering the interests of their shareholders and welfare
of their employees as foundation of our long term success.

The 'leadership with trust' philosophy that has come to play such a vital role in
how their customers perceive them is all the more remarkable given the climate
of unparalleled public distrust of people in positions of authority today both in
business and politics.

38
MILESTONES IN QRG GROUP

1958: Commenced trading operations in Delhi

1971: Bought HAVELLS Brand

1976: Set up the first manufacturing plant for Rewireable Switches and
Changeover Switches at Kirti Nagar, Delhi.

1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi.

1980: Started manufacturing high quality Energy Meters at Tilak Nagar, Delhi.

1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with

Geyer, Germany.

1990: Set up a manufacturing plant at Sahibabad, UP for Changeover switches.

1996: Acquired a manufacturing plant at Alwar, Rajasthan for power cables

and wires.

Entered into a Joint Venture with Electrium, UK for manufacturing Dorman

Smith MCCBs and Crabtree Modular Plate Switches.

1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing

Customer packaged solution.

2001: Acquired business of Havells Industries Ltd, MCCB of Crabtree India

Limited and merged ECS Limited in the company to consolidate its area of
core competence.

2002: Standard Electrical Company becomes a 100% Subsidiary of the

company.Attained the IEC certification for Industrial switchgear and CSA
certification for all manufacturing plants.

39
2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of switch
gear. Set up a manufacturing plant for manufacturing of CFL at existing
manufacturing plant in Faridabad, Haryana.

2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at

Noida,UP.

2005: Set up manufacturing plant in Haridwar, for manufacturing

fans.Awarded the KEMA certification by The Dutch Council for Accreditation,
making QRG the only group to attain this certification.Set up of Research &
Development Center in Noida H.O.

2006:Crabtree India merged with Havells India.

Added CFL production unit in Haridwar manufacturing plant.
Expansion at Alwar manufacturing plant for increase of production control.

Expansion at Baddi manufacturing plant and set-up of an Export Oriented unit.

2006: First Company to get the ISI Certification for complete range of CFLs.

Started mid-day meal program at Alwar.

2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity

of 6,00,000 KVAr per month.

Acquired the Lighting business of a Frankfurt based company "Sylvania" ,a

global leader in lighting business and now the company's turnover crosses US$
1 Billion. Havells at that time was best known for its electrical switches,
energy meters and miniature circuit breakers (MCBs), while SLI Sylvania was
a renowned yet under-leveraged European lamps and fixtures brand. In March
2007, Havells acquired SLI Sylvania of Netherlands for $300 Million, making
it the fourth largest lighting business in the world, worth over a billion USD!

40
This was, at that time, the biggest overseas takeover by an Indian Electrical
equipment manufacturer.

This takeover helped the Havells brand to over 20,000 dealers across Latin
America, Europe, Asia and Africa. It instantly catapulted Havells-Sylvania into
the billion-dollar league (in terms of combined turnover), with more than 60%
of its revenues being contributed by international markets.Havells portfolio of
prestigious global brands now includes Crabtree, Sylvania, Concord,
Luminance, Linolite & SLI Lighting.

2008: First Indian CFL manufacturers to have adopted RoHS, European norms
on Restriction of Hazardous Substances in CFLs.

Set up of Global Corporate office, QRG Towers at Expressway Noida.

Investment of Rs.50 Crores in Global Center for Research and Innovation
(CRI).

Set up of fully automatic plant for Havells Lafert Motors at Neemrana.

2009: Global consolidation of CFL manufacturing plant at Neemrana for

domestic and export purposes.

Launch of Indias first HPF CFL.

Launch of Indias 1st BEE 5* Rated Fan.

2010: Launch of Havells brand in US and Mexico.

Inauguration of fan manufacturing unit 2 at Haridwar.

Acquired 100% result in Standard Electrical.

Set up Worlds First New Generation CHM Lamp Plant at Neemrana.

Enter into Electric Water Heaters Business.

41
2011: Launch of new range of Control Gear Cosmic Star series.

Set up of new Industrial Switchgear Plant in Sahibabad.

Launch of Domestic Appliances

Standard Electrical merged with Havells

Entered into a Joint Venture with Shanghai Yaming Lighting, China

PRODUCTS

Products are like windows which will expose the company to the outer world.
Each company produces unique product. In the case of Havells which is an
electrical and power distribution equipment manufacturer, its products ranging
from Industrial & Domestic Products, Cables and Wires, Motors, Fans, CFL
Lamps, Lightings, Water Heater, Modular Switches, Crabtree and Standard
Electrical Products.

1. B UI L DI NG CI RC UI T P RO T E CT I O N

Havells India Ltd. has emerged as preferred choice for discerning range of
individual and industrial customers. Havells is the largest manufacturer of
MCBs in the country and 30% of the MCBs sold in UK are Havells
manufactured.

Miniature Circuit Breaker (MCB)

Isolator

Changeover Switch

Residual Current Circuit Breaker (RCCB)

RCBO

Distribution Board (DB)

42
2 . I ND U S T RI A L CI RC UI T P RO T E C T I O N

Havells India Ltd. is the leading manufacturer of low voltage Industrial

Products for Three Phase and Single phase power distribution, switching
control and protection control.

Panel Board system

Changeover Switch

By-pass Changeover Switch

Load Changeover Switch

Automatic Transfer Switch

Switch Disconnector

Control Gear

Switch Disconnector Fuse

Fuse Switch and Switch Fuse

Chamber System

Fuse Holder

Nylon Fuse Base

Fuse Link and Fuse Base

3 . MO T O R
Havells is manufacturing three phase LV Motors at Neemrana. The motors are
manufactured in technical collaboration with Lafert, one of the largest motor
manufacturers in Europe who is now the owners of AEG Electric Motors. The
plant has a capacity to manufacture over 300000 nos. energy efficient motors

43
per year. The complete ranges of motors are manufactured in- house and the
plant and machinery has been procured from AEG Electric Motors.

Foot Mounting

Flange Motor

Foot Cum Flange

Inverter Duty Motors with Forced Cooling

Crane Duty Motors

Brake Motors

The latest range of Havells 3 phase energy efficient LV induction motors,

namely Havells Inverter Duty Motors, Crane Duty Motors , Brake Motors ,
Dual Speed Motors , Smoke Ventilated Motors are specifically designed to
fulfil the applications requiring high-performance levels and total reliability for
a long time. These are easy to install and low cost power transmission units
that drive a multitude of machine applications. These are especially
manufactured, keeping in mind the exact requirements of the esteemed patrons.
These motors offer robust performance, high functionality, high durability and
excellent energy efficiency. These highly energy efficient 3 phase motors work
perfectly even while consuming significantly less power as opposed to
traditional motors.

4 . C A P ACI T O RS
Havells capacitors are designed and manufactured using S3 technology. It
encompasses product with triple shield with differential disconnector in the
event of any fault within due to environmental compatibility. Advance
technologies used in capacitors offer customers an outstanding performance
under Indian conditions. Automatic controlled vacuum potting of Element
44
Modules ensures fault remains localized and protects the installation in spite
of hazards.

Normal Duty

Heavy Duty

Super Heavy Duty

Agriculture Duty

Motor Run Capacitors

5 . C FL
Most of the CFL manufactures world wide use liquid mercury in CFL
manufacturing due to cost effectiveness and simpler technology. The
disadvantage is that technically it is extremely difficult to limit the weight of
liquid mercury. Havells has modified all CFL production lines and adopted
PDT (Pill Dosing Technology). With PDT, they use amalgamated mercury
pills that are less harmful to the environment as compared to conventional use
of liquid mercury. Havells is the largest exporter of Lilliput CFL under brand
name Havells Sylvania and has been awarded the best CFL in Sweden &
France.

Retrofit

Non Retrofit

Higher Range

Lilliput

FPL

45
6 . MO D UL AR PL AT E S W I T CH E S
Havells switches are aesthetically designed modular plate switches that are
engineered to deliver protection and built to last. Crabtree switches, Sockets,
Accessories are designed for the rugged Indian conditions. The range created
from fire retardant, self extinguishing poly carbonate plastic, can with stand the
glow wire test at 850c. Also ultra-violet stabilized material is used to avoid
discoloration even after long exposure to sunlight.

Havells Modular Switches

Crabtree Modular Switches

7 . L I G H T I NG
Havells owns a wide range of energy efficient luminaries for domestic and
decorative applications. A wide range of electromagnetic & electronic
luminaries and modern range of roadway luminaries deep drawn & die-cast
aluminium constructions are available in HIL.

LED Lighting

Consumer Lighting

Commercial Lighting

Down Lighter

Landscape Bunker Lighting

Industrial Lighting

Area Lighting

Road Lighting

Specialty Lamps

46
 Accessories

Aura Lighting

8 . F A NS
Havells entered the Fans business in mid-2003 and soon, with its consistent
quest for innovation and customer satisfaction, became an enviable competitor
and a player, revered for capturing strong market share through its wide range
and pioneering designs. From premium fans in exquisite antique finishes to
fans specially designed for kids to dual color fans and super speed fans. Further
it won industry accolades on launch of Havells ES-50, which was indigenously
designed by the R&D team and was Indias first energy efficient fan,
consuming only 50 W of electricity.

Ceiling Fans

Table Fans

Wall Mounting Fans

Air Circulator Fans

Ventilating Fans

9 . C AB L E S & W I RE S
Set up in the year 1996, Havells Cables Plant (ISO: 9001-2000 certified unit) is
located in Alwar, in the state of Rajasthan. Since inception, Havells has
invested heavily in manufacturing infrastructure, which has today become one
of the largest in India. All wires and cables are manufactured on most modern
laser controlled automatic machines, using best raw material from primary
manufacturers ensuring perfect quality.

47
 Power Cables Aluminum

Control Cables Copper

Copper Flexible Cables

1 0 . G E Y S E RS

Havells today is known for high quality energy efficient products. Going
forward with this commitment it has introduced state of the art New Generation
Electric Water Heaters with Penta Shield Technology which provides 5- fold
safety with high precision Thermostat. It helps to accelerate your savings as it
only consumes half a unit of electricity for 24 hour operation.

Electronic storage water heater

Instantaneous water heater

11. D O ME S T I C A P P L I A N CE S

Each product has been designed to enhance the overall consumer experience in
the modern kitchens and homes. All the appliances are truly international in
technology and design. Special focus on hygiene which starts right from the
designing and materials to ensure the appliances are able to maintain the
highest level of cleanliness and hygiene with ease.

Garment Care

Brewing

Food Preparation

Air Cooler

Cooking

48
Question No : 1
Do you sell Havells CFL?

4.1

Variables Respondents

Yes 28

No 22

Total 50

4.i

Yes
No

Interpretation:56% of the respondents sell Havells CFL.

49
Question No : 2

Which brand of CFL frequently sells at your counter?

4.2

Variables Respondents

Havells 28

Phillps 20

Any Others 2

Total 50

4.ii

Havells
Phillps
Any Others

Interpretation:56% of the respondents sells Havells CFL whereas 40% sells

Phillps.

50
Question No : 3

Do you agree that the price of Havells CFL is competitive?

4.3

Variables Respondents

Yes 4

No 4

Cant Say 20

Total 28

4.iii

Yes
No
Cant Say

Interpretation:71% of the respondents are not sure whether the price of

Havells CFL is competitive.

51
Question No : 4

Are you aware of the USPs of Havells CFL?

4.4

Variables Respondents

Yes 10

No 18

Total 28

4.iv

Yes

No

Interpretation:64% of the respondents are not aware about the USPs of

Havells CFL.

52
Question No : 5

Availability of Havells CFL?

4.5

Variables Respondents

Always Available 9

Occasionally Available 19

Unavailable 0

Total 28

4.v

Always Available
Occasionally Available
Unavailable

Interpretation:68% of the respondents says that Havells CFL are occasionally

available.

53
Question No : 6

Are you satisfied with the services provided by Havells?

4.6

Variables Respondents

Yes 22

No 4

Total 28

4.vi

Yes
No

Interpretation:79% of the respondents are satisfied with the services of

Havells CFL.

54
Question No : 7

What is the daily sale of CFL at your outlet?

4.7

Variables Respondents

0 50 9

51 100 41

Above 100 0

Total 50

4.vii

0 50
51 100
Above 100

Interpretation:82% of the respondents sells 51 100 pieces of CFLs a day.

55
Question No : 8

Average volume of Havells CFL sold at your outlet

4.8

Variables Respondents

0 50 7

51 100 21

Above 100 0

Total 28

4.viii

0 50
51 100
Above 100

Interpretation:75% of the respondents sells at an average of 51 100 Havells

CFLs.

56
CHAPTER 5

FI NDINGS AND SUGGESTIONS

5.1 Findings

The data collected from 50 respondents have analysed and main findings of
the study are presented in this chapter.

56% of the respondents sell Havells CFL.

56% of the respondents sells Havells CFL whereas 40% sells Phillps.

71% of the respondents are not sure whether the price of Havells CFL is
competitive.

64% of the respondents are not aware about the USPs of Havells CFL.

68% of the respondents says that Havells CFL are occasionally

available.

79% of the respondents are satisfied with the services of Havells CFL.

82% of the respondents sells 51 100 pieces of CFLs a day.

75% of the respondents sells at an average of 51 100 Havells CFLs.

57
5.2 Suggestions

More awareness about the USPs of Havells CFL should be given to the
dealers.

There is more need in improvement of quality of Green CFL so

that it decreases the rate of replacement.

Company should improve its grievance handling system

58
Questionnaire

This questionnaire is for analysing the Retail marketing segment among the
dealers of Havells India Limited. The opinion and information supplied by
you will be kept confidential and put in to use only for academic purposes.
Thank you for being a part of this study and finding time to help me. Please
tick the appropriate boxes.

1. Do you sell Havells CFL?

o Yes
o No

2. Which brand of CFL frequently sells at your counter?

o Havells
o Phillps
o Any other

3. Do you agree that price of Havells CFL is competetive?

o Yes
o No
o Cant say

4. Are you aware of the USPs of Havells CFL?

o Yes
o No

5. Availability of Havells CFL?

o Always available
o Occasionally available
o Unavailable

59
6. Are you satisfied with the services provided by Havells?
o Yes
o No

7. What is the daily sale of CFL at your outlet?

_______________________________________

8. Average volume of Havells CFL sold at your outlet

________________________________________

9. Any other suggestions

________________________________________
________________________________________
________________________________________

60
BIBLIOGRAPHY

w w w . Ha v e l l s .c o m

w w w . QR G Group.com

w w w .a l l e l e c t r i c a l p r o d u c t s . c o m/ i nd i a n - e l e c t r i c a l -
i n d u s t r y.h t ml

Philip Kotler, Marketing Management

61