Havells introduces its own brand in the US market

29 May 2024 , 03:41 PM

 

According to chairman and managing director Anil Rai Gupta, Havells India is the first Indian electronic company to introduce its own brand in the US. It has begun selling air conditioners, cables, and lighting items including luminaires built in India.

According to Gupta, the company is also planning to invest ₹1,000 Crore this year to establish new facilities for fans, lights, freezers, and cables. It is also investigating possibilities for producing AC compressors. It spent about ₹700 Crore on capital expenditures in 2023–2024.

Havells has introduced the ACs for the US market under the Lloyd brand, which is presently offered for sale through the e-commerce platform of American home improvement store Lowe’s.

According to Gupta, the business is currently establishing two joint ventures in the US with two different distribution firms, in which Havells India will own a 75–90% stake. The first joint venture will sell and distribute air conditioners, while the second will deal with luminaires.

We aim to establish a brand in the US that is centred on technology as well as affordability. Our team will now concentrate on developing items for the US market for the next two years. There is a rising market, according to Gupta.

Havells established a local team in New York to handle product development and customising in accordance with US standards. Havells has established its own foothold in this foreign market, despite having previously exported goods valued at about $80 million. The installers are the ones being targeted for sales of ACs. A consumer in the US is limited to using a qualified installer to install an air conditioner.

According to executive director Rajiv Goel, there is a good long-term opportunity because AC is protected by the US Inflation Reduction Act. He stated that the US ought to account for at least 35–40% of Havells’ overall foreign business in the next four to five years.

Additionally, we can learn a lot about this market. Indian upper-class consumers have ambitions for a global lifestyle. So, this venture might also assist us in introducing goods in India that are targeted at the wealthiest segments of the population. There are individuals in India who desire the experience of Western markets, and their annual income is $80,000 or $100,000, according to Goel.

The Lloyd brand is a major force in the domestic market, leading the AC segment and expanding into other categories such as televisions, washing machines, and refrigerators.

Havells India recorded revenues of ₹18,550 Crore in 2023–24, an increase of 10% over the previous year. The company’s net profit increased by 18% to ₹1,273 Crore. Sales of ₹3,785 Crore were recorded by the Lloyd consumer durables division in FY24; losses for this division decreased to ₹164 Crore from ₹222 Crore in FY23.

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