HAVELLS INDIA LIMITED.pdf
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Jun 10, 2022
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About This Presentation
cf
Slide Content
HINDUSTHAN COLLLEGE OF ENGINEERING AND TECHNOLOGY
(Approved by AICTE, New Delhi and Accredited with „A‟ Grade by NAAC)
(An Autonomous Institution, Affiliated to Anna University, Chennai)
Valley Campus, Pollachi Highway, Coimbatore –641032.
DEPARTMENT OF MANAGEMENT SCIENCES
MASTER OF BUSINESS ADMINISTRATION
COURSE CODE & NAME: 20BA3001 – STRATEGIC MANAGEMENT
TOPIC : HAVELLS INDIA LTD
SUBMITTED BY
NAME : MUHAMMED ALTHAF H S
REG NO : 20206024
BATCH : 2020 - 2022
DATE : 10-11-2021
EVALUATION CRIETRA MARKS
CONTENT (5)
PRESENTATION (5)
TOTAL (10)
Faculty Name : Dr.Samuvel Faculty Sign:
(Approved by AICTE, New Delhi and Accredited with „A‟ Grade by NAAC)
(An Autonomous Institution, Affiliated to Anna University, Chennai)
Valley Campus, Pollachi Highway, Coimbatore –641032.
DEPARTMENT OF MANAGEMENT SCIENCES
MASTER OF BUSINESS ADMINISTRATION
COURSE CODE & NAME: 20BA3001 – STRATEGIC MANAGEMENT
TOPIC : HAVELLS INDIA LTD
SUBMITTED BY
NAME : MUHAMMED ALTHAF H S
REG NO : 20206024
BATCH : 2020 - 2022
DATE : 10-11-2021
EVALUATION CRIETRA MARKS
CONTENT (5)
PRESENTATION (5)
TOTAL (10)
Faculty Name : Dr.Samuvel Faculty Sign:
Table of Contents
INTRODUCTION ........................................................................................................................................... 1
Type chapter title (level 2) ....................................................................................................................... 2
Type chapter title (level 3) ................................................................................................................... 3
Type chapter title (level 1) .......................................................................................................................... 4
Type chapter title (level 2) ....................................................................................................................... 5
Type chapter title (level 3) ................................................................................................................... 6
INTRODUCTION ........................................................................................................................................... 1
Type chapter title (level 2) ....................................................................................................................... 2
Type chapter title (level 3) ................................................................................................................... 3
Type chapter title (level 1) .......................................................................................................................... 4
Type chapter title (level 2) ....................................................................................................................... 5
Type chapter title (level 3) ................................................................................................................... 6
1
INTRODUCTION
Anil Rai Gupta is the Chairman and Managing Director of Havells India Limited, a $1.3 billion
FMEG (Fast Moving Electrical Goods) conglomerate. Havells is one of the fastest growing
FMEG companies in India and has evolved into a socially and environmentally responsible
global company with a leading presence in each product segment it is present in. Anil Joined
Havells in 1992.
He designed, articulated and implemented marketing strategy that transformed the company
from just a family brand to a global brand, revered for its technology, innovation, customer
friendliness and product range. He honed his entrepreneurial skills under the tutelage of his
father and Founder Chairman, Late Sh. Qimat Rai Gupta.
In 2003, Anil guided the company to diversify from being a pure Industrial Product Company to
also a Consumer Product Company. His foresightedness helped company glide through the
storm of global economic crisis in 2008 and Havells continued to book profits. Anil took
forward the vision of his father and played a key role in modernizing of plants and overall
infrastructure. Today, Havells has the best infrastructure and most modern plants across the
entire electrical Industry in India.
He was instrumental in the new business development through alliances and acquisitions. In
2007, he led the effort of acquiring Sylvania, a US $600 million German lighting systems and
fixtures company. Sylvania at that time was 1.5 times bigger than Havells. This acquisition
helped Havells moved from domestic shores to become one of world‟s largest lighting
companies. Havells has since grown in brand stature, revenues and leadership position.
Anil graduated in Economics from Sri Ram College of Commerce, Delhi University and then
went on to pursue MBA (Marketing and Finance) from Wake Forest University, North Carolina,
USA. Not only was he amongst the top five students in the graduating class in Wake Forest
University, he was also awarded the “Babcock Award” for excellence in academics, integrity
and leadership. Further, he was elected as the Vice President of the Students Government
Association in his University.
A firm believer of giving back to the society, Anil with the blessings from his father initiated
the Mid-day meal programme through QRG foundation. Every day, the foundation provides
hygienic and nutritious food to over 50000 school children across 666 government schools in
Alwar district of Rajasthan. QRG Foundation has taken the mandate to provide sanitation
INTRODUCTION
Anil Rai Gupta is the Chairman and Managing Director of Havells India Limited, a $1.3 billion
FMEG (Fast Moving Electrical Goods) conglomerate. Havells is one of the fastest growing
FMEG companies in India and has evolved into a socially and environmentally responsible
global company with a leading presence in each product segment it is present in. Anil Joined
Havells in 1992.
He designed, articulated and implemented marketing strategy that transformed the company
from just a family brand to a global brand, revered for its technology, innovation, customer
friendliness and product range. He honed his entrepreneurial skills under the tutelage of his
father and Founder Chairman, Late Sh. Qimat Rai Gupta.
In 2003, Anil guided the company to diversify from being a pure Industrial Product Company to
also a Consumer Product Company. His foresightedness helped company glide through the
storm of global economic crisis in 2008 and Havells continued to book profits. Anil took
forward the vision of his father and played a key role in modernizing of plants and overall
infrastructure. Today, Havells has the best infrastructure and most modern plants across the
entire electrical Industry in India.
He was instrumental in the new business development through alliances and acquisitions. In
2007, he led the effort of acquiring Sylvania, a US $600 million German lighting systems and
fixtures company. Sylvania at that time was 1.5 times bigger than Havells. This acquisition
helped Havells moved from domestic shores to become one of world‟s largest lighting
companies. Havells has since grown in brand stature, revenues and leadership position.
Anil graduated in Economics from Sri Ram College of Commerce, Delhi University and then
went on to pursue MBA (Marketing and Finance) from Wake Forest University, North Carolina,
USA. Not only was he amongst the top five students in the graduating class in Wake Forest
University, he was also awarded the “Babcock Award” for excellence in academics, integrity
and leadership. Further, he was elected as the Vice President of the Students Government
Association in his University.
A firm believer of giving back to the society, Anil with the blessings from his father initiated
the Mid-day meal programme through QRG foundation. Every day, the foundation provides
hygienic and nutritious food to over 50000 school children across 666 government schools in
Alwar district of Rajasthan. QRG Foundation has taken the mandate to provide sanitation
2
facilities especially for girls in all the schools where it provides mid-day meal in order to
provide an ideal environment for education.
A firm believer of power of education, Anil believes that a study of liberal arts is essential in
shaping leaders of the future. With this thought, he became one of the founding members of
India‟s first liberal Arts university - Ashoka University.
Besides wiring Havells‟ aggressive global future, Anil also takes keen interest in music and
playing golf. He lives in Delhi with his wife and two children.
HISTORY
Havells India was incorporated in 1983 is a billion–dollar company 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,
Water Heaters, Fans, Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial &
Industrial applications and Modular Switches covering the entire gamut of household,
commercial and industrial electrical needs.
Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Lumiance
& Linolite. 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 20,000 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.
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. The company has been consistent in its brand promotion with
sponsorship of Cricket events like T20 World Cup, India–Australia Series and IPL Season first,
second and third.
facilities especially for girls in all the schools where it provides mid-day meal in order to
provide an ideal environment for education.
A firm believer of power of education, Anil believes that a study of liberal arts is essential in
shaping leaders of the future. With this thought, he became one of the founding members of
India‟s first liberal Arts university - Ashoka University.
Besides wiring Havells‟ aggressive global future, Anil also takes keen interest in music and
playing golf. He lives in Delhi with his wife and two children.
HISTORY
Havells India was incorporated in 1983 is a billion–dollar company 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,
Water Heaters, Fans, Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial &
Industrial applications and Modular Switches covering the entire gamut of household,
commercial and industrial electrical needs.
Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Lumiance
& Linolite. 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 20,000 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.
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. The company has been consistent in its brand promotion with
sponsorship of Cricket events like T20 World Cup, India–Australia Series and IPL Season first,
second and third.
3
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.
VISION AND MISSION
VISION
To be a globally recognized corporation known for excellence, governance, consumer
delight and fairness to each stakeholder including the society and environment in which we
operate.
MISSION
To achieve our vision through business ethics, global reach, technological expertise,
building long- term relationships with all our associates, customers, partners and employees.
VALUES
Customer Delight :
A commitment to surpass our customer expectations
Leadership by example :
A commitment to set standards for our business and transactions based on mutual trust.
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 teams, our services
and products so as to become the best-in-class
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.
VISION AND MISSION
VISION
To be a globally recognized corporation known for excellence, governance, consumer
delight and fairness to each stakeholder including the society and environment in which we
operate.
MISSION
To achieve our vision through business ethics, global reach, technological expertise,
building long- term relationships with all our associates, customers, partners and employees.
VALUES
Customer Delight :
A commitment to surpass our customer expectations
Leadership by example :
A commitment to set standards for our business and transactions based on mutual trust.
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 teams, our services
and products so as to become the best-in-class
4
CORPORATE GOVERNANCE AT HAVELLS
Who we are is defined by what we do and how we do it.
This simple philosophy underlines our approach to Corporate Governance. So, if profit
is our intention, how we achieve this profit is a part of our Corporate Governance. For us,
Corporate Governance goes beyond philanthropy and compliance but actually deals with how
we manage our triple bottom lines – economic, social and environmental impacts. It monitors
our role as well as the quality of our relationships in key spheres of influence including the
workplace, the market place, the supply chain, the community and the public policy realm.
As a Company, we distinguish ourselves in the market by offering a portfolio of ecologically
responsible electrical products and services that deliver powerful, sustainable, and energy
efficient solutions that do not compromise on capacity or security.
Our eco-friendly approach is evident in our efforts to develop an alternate energy strategy so as
to reduce the environmental impact of our business. We are equally committed to managing a
responsible supply chain in a manner that is consistent and compliant with our high standards
for environment and business practices.
We recognize that there are barriers that 'constrain innovation, both, in individuals and
communities, and we work to overcome them.' We build communities and promote the
exchange of ideas through assistive technologies; participative programs and standardization
that transforms the way people experience our products. Our energy efficient solutions enable
people to save money and protect their capital investment while also lowering their energy
usage and protecting the environment.
This contributes to our CSR responsibility of sustenance of depleting environmental resources.
CORPORATE GOVERNANCE AND ETHICS
As a Company we have always worked on the side of ethics and have shunned
expediency in any form. We believe that if something is important enough to be done, it is
important that we do it ethically. We supplement our traditionally held values of ethical
behavior and moral conduct with explicit rules and regulations that guide our efforts in
financial, propriety, customer care and business excellence.
We uphold the policy of "Leadership with trust" that has come to play a vital role in how our
customers perceive us. This is important, given the climate of unparalleled public distrust of
people in positions of power and authority in contemporary business and politics.
CORPORATE GOVERNANCE AT HAVELLS
Who we are is defined by what we do and how we do it.
This simple philosophy underlines our approach to Corporate Governance. So, if profit
is our intention, how we achieve this profit is a part of our Corporate Governance. For us,
Corporate Governance goes beyond philanthropy and compliance but actually deals with how
we manage our triple bottom lines – economic, social and environmental impacts. It monitors
our role as well as the quality of our relationships in key spheres of influence including the
workplace, the market place, the supply chain, the community and the public policy realm.
As a Company, we distinguish ourselves in the market by offering a portfolio of ecologically
responsible electrical products and services that deliver powerful, sustainable, and energy
efficient solutions that do not compromise on capacity or security.
Our eco-friendly approach is evident in our efforts to develop an alternate energy strategy so as
to reduce the environmental impact of our business. We are equally committed to managing a
responsible supply chain in a manner that is consistent and compliant with our high standards
for environment and business practices.
We recognize that there are barriers that 'constrain innovation, both, in individuals and
communities, and we work to overcome them.' We build communities and promote the
exchange of ideas through assistive technologies; participative programs and standardization
that transforms the way people experience our products. Our energy efficient solutions enable
people to save money and protect their capital investment while also lowering their energy
usage and protecting the environment.
This contributes to our CSR responsibility of sustenance of depleting environmental resources.
CORPORATE GOVERNANCE AND ETHICS
As a Company we have always worked on the side of ethics and have shunned
expediency in any form. We believe that if something is important enough to be done, it is
important that we do it ethically. We supplement our traditionally held values of ethical
behavior and moral conduct with explicit rules and regulations that guide our efforts in
financial, propriety, customer care and business excellence.
We uphold the policy of "Leadership with trust" that has come to play a vital role in how our
customers perceive us. This is important, given the climate of unparalleled public distrust of
people in positions of power and authority in contemporary business and politics.
5
Employee Relations
As a Company, we have consistently believed that the best way to fight competition is through
improved competence. Our people are the key to our success. So naturally, the rising
capabilities of our team will increase our competency and in turn enable us to overcome our
impediments. Towards this goal, we offer a structured Learning and Development program that
enhances our team capabilities.
To ensure increased competency of our people, we combine competitive compensation along
with development and advancement opportunities that reward achievements.
We communicate widely with employees to demonstrate how their efforts contribute to our
success and listen patiently to their concerns. We encourage our team members to align with our
vision. We sustain a work place environment where communication lines are always open and
where everyone's voices are heard.
Our multiple channels of communication include an internal web portal, a Company website,
along with communication sessions with the top management. These sessions provide us a level
of understanding of employee satisfaction and we apply these leanings to our business planning,
management decision-making and Company strategy development.
The end result of our communication outreach is that our employees are cued in to implement
Company policies, meet high standards of conduct and ensure that their behavior reflects our
corporate values and policies.
We also seek to positively impact levels of health, safety and wellness of our employees. Our
facility policies are oriented towards continually reducing risk of occupational injury and illness
while promoting employee health and well-being. Our desire is to be and remain a Company
where employees are proud to work, and customers, partners and suppliers are eager to do
business with.
Employee Relations
As a Company, we have consistently believed that the best way to fight competition is through
improved competence. Our people are the key to our success. So naturally, the rising
capabilities of our team will increase our competency and in turn enable us to overcome our
impediments. Towards this goal, we offer a structured Learning and Development program that
enhances our team capabilities.
To ensure increased competency of our people, we combine competitive compensation along
with development and advancement opportunities that reward achievements.
We communicate widely with employees to demonstrate how their efforts contribute to our
success and listen patiently to their concerns. We encourage our team members to align with our
vision. We sustain a work place environment where communication lines are always open and
where everyone's voices are heard.
Our multiple channels of communication include an internal web portal, a Company website,
along with communication sessions with the top management. These sessions provide us a level
of understanding of employee satisfaction and we apply these leanings to our business planning,
management decision-making and Company strategy development.
The end result of our communication outreach is that our employees are cued in to implement
Company policies, meet high standards of conduct and ensure that their behavior reflects our
corporate values and policies.
We also seek to positively impact levels of health, safety and wellness of our employees. Our
facility policies are oriented towards continually reducing risk of occupational injury and illness
while promoting employee health and well-being. Our desire is to be and remain a Company
where employees are proud to work, and customers, partners and suppliers are eager to do
business with.
6
BOARD OF DIRECTORS
The Board of Directors has an optimum combination of Executive and Non-Executive
Directors with Two Woman Directors and fifty per cent of the Board of Directors comprises of
Non-Executive and Independent Directors. The Chairperson of the Board is an Executive
Director. The profiles of Directors can be accessed on the Company‟s website at
https://www.havells.com/en/ aboutus/directors.html The Board meets at least 4 (Four) times a
year and more often if Company needs merit additional oversight and guidance. During the
Financial year 2020-21, the time gap between any two board meetings did not exceed 120 (One
Hundred and Twenty) days. The Board of Directors periodically reviews compliance reports
pertaining to all laws applicable to the Company. All statutory and other matters of significance
including information as mentioned in Part A of Schedule II to the SEBI (Listing Obligations
BOARD OF DIRECTORS
The Board of Directors has an optimum combination of Executive and Non-Executive
Directors with Two Woman Directors and fifty per cent of the Board of Directors comprises of
Non-Executive and Independent Directors. The Chairperson of the Board is an Executive
Director. The profiles of Directors can be accessed on the Company‟s website at
https://www.havells.com/en/ aboutus/directors.html The Board meets at least 4 (Four) times a
year and more often if Company needs merit additional oversight and guidance. During the
Financial year 2020-21, the time gap between any two board meetings did not exceed 120 (One
Hundred and Twenty) days. The Board of Directors periodically reviews compliance reports
pertaining to all laws applicable to the Company. All statutory and other matters of significance
including information as mentioned in Part A of Schedule II to the SEBI (Listing Obligations
7
and Disclosure Requirements) Regulations, 2015 are informed to the Board to enable it to
discharge its responsibility of strategic supervision of the Company
SHARE PRICE OF HAVELLS COMPANY
CORPORATE SOCIAL RESPONSIBILITY
Creating positive impact in communities through service
In keeping with the ethos instilled by the founder Lt. Shri. Qimat Rai Gupta, Havells sustains a
Social agenda by initiatives, both in our profit as well as after profit pursuits. We follow a
socially positive agenda and work consistently to contribute to the betterment of our society and
its future. With the belief that business is an active entity of the society and the economy, the
company plays a strong role in nation- building. Our initiatives revolve around our concerns for
the nutrition, health and education of children.
The Mid Day Meal Program
The Havells mid-day meal program for school going children is our flagship CSR activity and
was introduced in 2005 with the stated aim of improving the health and nutrition levels of
students in government school and improving their attendance and learning outcomes. The
program began with coverage of 1,500 students. In 2015, ten years since inception, the Havells
Mid -Day meal scheme caters to over 58,000 students from 688 schools every day in the Alwar
region of Rajasthan.
and Disclosure Requirements) Regulations, 2015 are informed to the Board to enable it to
discharge its responsibility of strategic supervision of the Company
SHARE PRICE OF HAVELLS COMPANY
CORPORATE SOCIAL RESPONSIBILITY
Creating positive impact in communities through service
In keeping with the ethos instilled by the founder Lt. Shri. Qimat Rai Gupta, Havells sustains a
Social agenda by initiatives, both in our profit as well as after profit pursuits. We follow a
socially positive agenda and work consistently to contribute to the betterment of our society and
its future. With the belief that business is an active entity of the society and the economy, the
company plays a strong role in nation- building. Our initiatives revolve around our concerns for
the nutrition, health and education of children.
The Mid Day Meal Program
The Havells mid-day meal program for school going children is our flagship CSR activity and
was introduced in 2005 with the stated aim of improving the health and nutrition levels of
students in government school and improving their attendance and learning outcomes. The
program began with coverage of 1,500 students. In 2015, ten years since inception, the Havells
Mid -Day meal scheme caters to over 58,000 students from 688 schools every day in the Alwar
region of Rajasthan.
8
Our nutritious meals are cooked in a state of the art kitchen with fresh ingredients and high
levels of automation, and delivered on time to different schools via our own fleet of vehicles.
Havells has employed a dedicated staff of about 160 people including cooks, helpers, drivers
and distributors to ensure timeliness, quality and hassle free provision of meals every day. The
program uses proper government approved diet charts that are used as guides to prepare weekly
menus to suit the tastes and nutritional requirements of children.
The Mid Day meal program was honored with the Child Rights champion award by CRY in
2014-15.
Sanitation program
Open defecation is one of the biggest challenges faced by the country. In 2014, we started
building bio-toilets in the schools where we served mid-day meal. So far we have built over
2050 bio-toilets in over 250 government schools. While building toilets is one thrust of making
India open defecation free, we realized that just building the required infrastructure does not
guarantee use or implementation of healthy practices. Not only it is important to generate
awareness about hygiene and proper sanitation practices to help make the endeavor sustainable
but also a change of perception and behavior amongst the target masses for a better and brighter
future was equally important. Havells envisioned WASH (Water, Sanitation and Hygiene)
Program in almost 100 Government Schools of Alwar where the ecofriendly bio toilets have
already been constructed. The program aims at making school children aware of the importance
of sanitation and to bring about a change so that they can incorporate good hygiene standards
and practices for better health and community hygiene. Also they could encourage others in
their homes and social groups to adopt hygienic practices. We aim to build similar toilets in
another 150 schools by end of this year taking the number of schools to 300. The specialty of
these toilets is that they do not need any sewage system. The four layer system works on a
bacteria created by DRDO which converts human waste into methane gas and the water that
comes out is almost 90% pathogen free which could be used for gardening or ground water
recharge. These modular toilets are built with concrete that are easy to install and are more
durable than conventional toilets.
Environment
Apart from this Havells has been focusing on tree plantation nearby its manufacturing plants.
We have planted over 10,000 trees in and around our plants in Alwar, Rajasthan and Baddi,
Himachal Pradesh.
Our nutritious meals are cooked in a state of the art kitchen with fresh ingredients and high
levels of automation, and delivered on time to different schools via our own fleet of vehicles.
Havells has employed a dedicated staff of about 160 people including cooks, helpers, drivers
and distributors to ensure timeliness, quality and hassle free provision of meals every day. The
program uses proper government approved diet charts that are used as guides to prepare weekly
menus to suit the tastes and nutritional requirements of children.
The Mid Day meal program was honored with the Child Rights champion award by CRY in
2014-15.
Sanitation program
Open defecation is one of the biggest challenges faced by the country. In 2014, we started
building bio-toilets in the schools where we served mid-day meal. So far we have built over
2050 bio-toilets in over 250 government schools. While building toilets is one thrust of making
India open defecation free, we realized that just building the required infrastructure does not
guarantee use or implementation of healthy practices. Not only it is important to generate
awareness about hygiene and proper sanitation practices to help make the endeavor sustainable
but also a change of perception and behavior amongst the target masses for a better and brighter
future was equally important. Havells envisioned WASH (Water, Sanitation and Hygiene)
Program in almost 100 Government Schools of Alwar where the ecofriendly bio toilets have
already been constructed. The program aims at making school children aware of the importance
of sanitation and to bring about a change so that they can incorporate good hygiene standards
and practices for better health and community hygiene. Also they could encourage others in
their homes and social groups to adopt hygienic practices. We aim to build similar toilets in
another 150 schools by end of this year taking the number of schools to 300. The specialty of
these toilets is that they do not need any sewage system. The four layer system works on a
bacteria created by DRDO which converts human waste into methane gas and the water that
comes out is almost 90% pathogen free which could be used for gardening or ground water
recharge. These modular toilets are built with concrete that are easy to install and are more
durable than conventional toilets.
Environment
Apart from this Havells has been focusing on tree plantation nearby its manufacturing plants.
We have planted over 10,000 trees in and around our plants in Alwar, Rajasthan and Baddi,
Himachal Pradesh.
9
Promoting education
Havells also facilitates education by providing need and merit based scholarships to children at
the Ashoka University at Sonipat.
We continue to contribute towards the betterment of the society.
WHY THIS COMPANY IS SUCCESSFUL
The year was 1971. Tucked in a non-descript corner of Delhi's bustling Bhagirath Palace,
electrical goods trader Qimat Rai Gupta (QRG) was furiously working on a set of permutations
and combinations. But these calculations were not for buying the next lot of switchboards or
light bulbs or bundles of cable. Instead, as QRG's ambition and vision soared above the mesh of
overhanging wires in the narrow alleys of old Delhi, he was putting in place a concrete plan to
start manufacturing electrical goods. QRG had a decade-long experience in the electrical goods
market and he understood the nuances of the sector.
That was a period when the manufacturing industry in India was picking up but funding
remained a big challenge. Except some known conglomerates and few other players, the
manufacturing industry had high entry barriers and most budding entrepreneurs were struggling
to make an impact due to lack of deep pockets. Licence raj was further creating bottlenecks for
India's economic growth. Yet , QRG was not willing to accept the prevailing economic situation
as fait accompli. When an opportunity presented itself in 1971 in the form of acquiring
switchgear manufacturing brand "Havells" from Haveli Ram Gandhi, QRG grabbed it with both
hands. With this acquisition, the growth story of Havells as a brand began.
As it turned out, the acquisition of brand Havells was an easier part in the overall scheme of
things. The company now needed to make a bigger investment to put together a manufacturing
unit. The brand name 'Havells' picked up steam and became a reasonably well-known name in
the electrical trade circles of Delhi. A lot of effort was made in the formative years to establish
'Havells' as a reliable brand in the Indian market. In 1976, the manufacturing plant for
rewireable and changeover switches came at Kirti Nagar in Delhi. With only a few players in
the organized market, the competition was reasonably less. Sensing this huge growth potential,
the company started manufacturing rewireable switches and changeover switches in the
beginning and later added distribution boxes. The production was based on the twin mantra of
quality and innovation for the Indian market.
Promoting education
Havells also facilitates education by providing need and merit based scholarships to children at
the Ashoka University at Sonipat.
We continue to contribute towards the betterment of the society.
WHY THIS COMPANY IS SUCCESSFUL
The year was 1971. Tucked in a non-descript corner of Delhi's bustling Bhagirath Palace,
electrical goods trader Qimat Rai Gupta (QRG) was furiously working on a set of permutations
and combinations. But these calculations were not for buying the next lot of switchboards or
light bulbs or bundles of cable. Instead, as QRG's ambition and vision soared above the mesh of
overhanging wires in the narrow alleys of old Delhi, he was putting in place a concrete plan to
start manufacturing electrical goods. QRG had a decade-long experience in the electrical goods
market and he understood the nuances of the sector.
That was a period when the manufacturing industry in India was picking up but funding
remained a big challenge. Except some known conglomerates and few other players, the
manufacturing industry had high entry barriers and most budding entrepreneurs were struggling
to make an impact due to lack of deep pockets. Licence raj was further creating bottlenecks for
India's economic growth. Yet , QRG was not willing to accept the prevailing economic situation
as fait accompli. When an opportunity presented itself in 1971 in the form of acquiring
switchgear manufacturing brand "Havells" from Haveli Ram Gandhi, QRG grabbed it with both
hands. With this acquisition, the growth story of Havells as a brand began.
As it turned out, the acquisition of brand Havells was an easier part in the overall scheme of
things. The company now needed to make a bigger investment to put together a manufacturing
unit. The brand name 'Havells' picked up steam and became a reasonably well-known name in
the electrical trade circles of Delhi. A lot of effort was made in the formative years to establish
'Havells' as a reliable brand in the Indian market. In 1976, the manufacturing plant for
rewireable and changeover switches came at Kirti Nagar in Delhi. With only a few players in
the organized market, the competition was reasonably less. Sensing this huge growth potential,
the company started manufacturing rewireable switches and changeover switches in the
beginning and later added distribution boxes. The production was based on the twin mantra of
quality and innovation for the Indian market.
10
After getting good response from consumers, the company was encouraged to expand its
product category and strengthen its distribution network across the country.
The company installed two more manufacturing plants in India located at Badli, Delhi, for HBC
fuses in 1979. In the city's Tilak Nagar area, another plant was installed in 1980 for
manufacturing high quality energy meters. While Havells continued to grow organically, it
knew that acquisitions were equally critical for achieving scale and size. Thus, acquisitions
became a core constituent of the Havells philosophy. The company displayed a knack for
picking up loss-making companies that had the potential for a turnaround with the right
guidance. As part of this strategy, Havells acquired Towers and Transformers, which
manufactured electrical meters but was a loss making entity. Havells turned the company
around in a period of just one year.
The manufacturing industry in India was soon plagued by the indiscriminate entry of Chinese
products in the Indian market in late 1980s.It was an era of liberalization when domestic
manufacturing companies faced a threat from both cheaper Chinese products and high quality
multinational products. This double whammy spelled trouble for local manufacturers and some
Indian companies even shut down their manufacturing units. However, Havells had other plans.
By now we had the scale and deep pockets to further boost the quality of our products in line
with the expectations of the Indian consumer, who wanted efficient products at an affordable
rate. In addition, we set up an R&D unit to invent a new products portfolio by working on
advanced technology and focusing on in-house research and development. The strategy started
yielding solid results in a short period.
The next phase of growth was marked by foraying into new product categories, stitching new
partnerships, deepening of marketing and sales network and yet again, acquisitions.
The company entered into a joint venture with Germany-based company Geyer and followed it
up with a similar arrangement with DZG to manufacture innovative and quality products.
Besides, the company acquired some national and international brands during 1998 to 2002 like
Crabtree, Standard and Duke Arnics Electronics to strengthen its product range while offering
quality products. Between 1993 and 1998, Havells also set up four R&D centres so that the
pipeline of new products was never dry. Even as Havells created a sizeable market for itself in
the industrial products category, it knew that the time was ripe to make a foray into the
consumer product category at the turn of the century to cater to the flurry of new housing
projects and the new discerning customer.Here, too, whether it was CFL, fans or lighting
products, the focus remained firmly on quality. Havells became the first company in India to
After getting good response from consumers, the company was encouraged to expand its
product category and strengthen its distribution network across the country.
The company installed two more manufacturing plants in India located at Badli, Delhi, for HBC
fuses in 1979. In the city's Tilak Nagar area, another plant was installed in 1980 for
manufacturing high quality energy meters. While Havells continued to grow organically, it
knew that acquisitions were equally critical for achieving scale and size. Thus, acquisitions
became a core constituent of the Havells philosophy. The company displayed a knack for
picking up loss-making companies that had the potential for a turnaround with the right
guidance. As part of this strategy, Havells acquired Towers and Transformers, which
manufactured electrical meters but was a loss making entity. Havells turned the company
around in a period of just one year.
The manufacturing industry in India was soon plagued by the indiscriminate entry of Chinese
products in the Indian market in late 1980s.It was an era of liberalization when domestic
manufacturing companies faced a threat from both cheaper Chinese products and high quality
multinational products. This double whammy spelled trouble for local manufacturers and some
Indian companies even shut down their manufacturing units. However, Havells had other plans.
By now we had the scale and deep pockets to further boost the quality of our products in line
with the expectations of the Indian consumer, who wanted efficient products at an affordable
rate. In addition, we set up an R&D unit to invent a new products portfolio by working on
advanced technology and focusing on in-house research and development. The strategy started
yielding solid results in a short period.
The next phase of growth was marked by foraying into new product categories, stitching new
partnerships, deepening of marketing and sales network and yet again, acquisitions.
The company entered into a joint venture with Germany-based company Geyer and followed it
up with a similar arrangement with DZG to manufacture innovative and quality products.
Besides, the company acquired some national and international brands during 1998 to 2002 like
Crabtree, Standard and Duke Arnics Electronics to strengthen its product range while offering
quality products. Between 1993 and 1998, Havells also set up four R&D centres so that the
pipeline of new products was never dry. Even as Havells created a sizeable market for itself in
the industrial products category, it knew that the time was ripe to make a foray into the
consumer product category at the turn of the century to cater to the flurry of new housing
projects and the new discerning customer.Here, too, whether it was CFL, fans or lighting
products, the focus remained firmly on quality. Havells became the first company in India to
11
come up with 'Green CFL' using pill dosing technology and launched India's first BEE five-star
rated fan. This new line of business was backed by some refreshing and out-of-the box
advertising that brought the 'wow' factor to an otherwise bland product range.
Havells is also credited for creating the FMEG or fast moving electrical goods category and has
established a direct rapport with customers across the country with a highly visible
communication and brand building campaign. The company's revolutionary concept of one
stop-shop, "Havells Galaxy" in Indian electrical industry has received an overwhelming
response and has today grown to a chain of over 250 stores across India. Havells has also
become the first FMEG company to offer door-step service to end-consumers through its
customer service portal, 'Havells Connect'. With the acquisition of Sylvania, an international
premium lighting brand, Havells became the fourth largest lighting company in the world.
The company's success is an outcome of a number of factors, including the management's
ability to take tough business decisions in a timely manner. What has paid in the long run is our
continuous investment in technology and a large distribution network across the country that has
kept it ahead of Chinese products and helped us win the hearts of millions of Indian consumers.
With 11 local plants and 5,300 dealerships, it has been a fascinating and rewarding journey for
Havells, its employees, its shareholders and its customers.
CODE OF ETHICS FOR DIRECTORS, SENIOR MANAGEMENT
AND OTHER EMPLOYEES
Havells India Limited („the Company‟) is committed to conduct its business in
accordance with the applicable laws, rules and regulations and with highest standards of
business ethics. This code is intended to provide guidance and help in recognizing and dealing
with ethical issues, provide mechanisms to report unethical conduct, and to help foster a
culture of honesty and accountability. This Code of Ethics is applicable to all the Directors,
Senior Management and other employees of Havells India Limited, as well as to the
employees of the entire Havells Group.
It helps in maintaining and following the standards of business conduct of the Company. The
purpose of the Code is to deter wrongdoing and promote ethical conduct in the Company.
These are essential so that we can conduct our business in accordance with our stated values.
come up with 'Green CFL' using pill dosing technology and launched India's first BEE five-star
rated fan. This new line of business was backed by some refreshing and out-of-the box
advertising that brought the 'wow' factor to an otherwise bland product range.
Havells is also credited for creating the FMEG or fast moving electrical goods category and has
established a direct rapport with customers across the country with a highly visible
communication and brand building campaign. The company's revolutionary concept of one
stop-shop, "Havells Galaxy" in Indian electrical industry has received an overwhelming
response and has today grown to a chain of over 250 stores across India. Havells has also
become the first FMEG company to offer door-step service to end-consumers through its
customer service portal, 'Havells Connect'. With the acquisition of Sylvania, an international
premium lighting brand, Havells became the fourth largest lighting company in the world.
The company's success is an outcome of a number of factors, including the management's
ability to take tough business decisions in a timely manner. What has paid in the long run is our
continuous investment in technology and a large distribution network across the country that has
kept it ahead of Chinese products and helped us win the hearts of millions of Indian consumers.
With 11 local plants and 5,300 dealerships, it has been a fascinating and rewarding journey for
Havells, its employees, its shareholders and its customers.
CODE OF ETHICS FOR DIRECTORS, SENIOR MANAGEMENT
AND OTHER EMPLOYEES
Havells India Limited („the Company‟) is committed to conduct its business in
accordance with the applicable laws, rules and regulations and with highest standards of
business ethics. This code is intended to provide guidance and help in recognizing and dealing
with ethical issues, provide mechanisms to report unethical conduct, and to help foster a
culture of honesty and accountability. This Code of Ethics is applicable to all the Directors,
Senior Management and other employees of Havells India Limited, as well as to the
employees of the entire Havells Group.
It helps in maintaining and following the standards of business conduct of the Company. The
purpose of the Code is to deter wrongdoing and promote ethical conduct in the Company.
These are essential so that we can conduct our business in accordance with our stated values.
12
Ethical business conduct is critical to a business. Accordingly, Employees of the Company are
expected to read and understand this Code, uphold these standards in day-to-day activities, and
comply with: all applicable laws; rules and regulations and all applicable policies and
procedures adopted by the Company that govern the conduct of its employees. The directors
and officers of the Company must not only comply with applicable laws, rules and regulations
but should also promote honest and ethical conduct of the business. They must abide by the
policies and procedures that govern the conduct of the Company's business. Their
responsibilities include helping to create and maintain a culture of high ethical standards and
commitment to compliance, and to maintain a work environment that encourages the
stakeholders to raise concerns to the attention of the management.
For any further clarifications they may contact Head of HR / Secretarial Department of the
Company.
As it is applicable to all the employees, at the time of joining the organization, they should
sign the acknowledgment form at the end of this Code and return the form to the HR
department indicating that they have received, read and understood, and agreed to comply
with the Code.
Additionally, all members of the Board of Directors and Senior Management personnel shall
affirm compliance with the Code of Conduct of Board of Directors and Senior Management
on an annual basis.
Senior Management would have the same meaning as defined in the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
Further, for the purpose of annual affirmation, the core management team shall comprise of
such members of management as determined by the Company under Layer 1 of the System-
Driven Disclosures in respect of Regulation 7(2) (b) of PIT Regulations.
1. HONEST AND ETHICAL CONDUCT
All Officers are expected to act in accordance with the highest standards of personal and
professional integrity, honesty and ethical conduct, not only on Company's premises and
offsite but also at company sponsored business, social events as well as any places.
Ethical business conduct is critical to a business. Accordingly, Employees of the Company are
expected to read and understand this Code, uphold these standards in day-to-day activities, and
comply with: all applicable laws; rules and regulations and all applicable policies and
procedures adopted by the Company that govern the conduct of its employees. The directors
and officers of the Company must not only comply with applicable laws, rules and regulations
but should also promote honest and ethical conduct of the business. They must abide by the
policies and procedures that govern the conduct of the Company's business. Their
responsibilities include helping to create and maintain a culture of high ethical standards and
commitment to compliance, and to maintain a work environment that encourages the
stakeholders to raise concerns to the attention of the management.
For any further clarifications they may contact Head of HR / Secretarial Department of the
Company.
As it is applicable to all the employees, at the time of joining the organization, they should
sign the acknowledgment form at the end of this Code and return the form to the HR
department indicating that they have received, read and understood, and agreed to comply
with the Code.
Additionally, all members of the Board of Directors and Senior Management personnel shall
affirm compliance with the Code of Conduct of Board of Directors and Senior Management
on an annual basis.
Senior Management would have the same meaning as defined in the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
Further, for the purpose of annual affirmation, the core management team shall comprise of
such members of management as determined by the Company under Layer 1 of the System-
Driven Disclosures in respect of Regulation 7(2) (b) of PIT Regulations.
1. HONEST AND ETHICAL CONDUCT
All Officers are expected to act in accordance with the highest standards of personal and
professional integrity, honesty and ethical conduct, not only on Company's premises and
offsite but also at company sponsored business, social events as well as any places.
13
Honest conduct is understood as such conduct that is ethical, free from fraud or deception and
conforming to the accepted professional standards. Ethical conduct includes the ethical
handling of actual or apparent conflicts of interest between personal and professional
relationships.
2. CONFLICTS OF INTEREST
A conflict situation may arise:
a. When an employee, officer, or director takes action or has interests that may
make it difficult to perform his or her work objectively and effectively,
b. The receipt of improper personal benefits by a member of his or her family as a
result of one's position in the Company,
c. Any outside business activity that detracts an individual's ability to devote
appropriate time and attention to his or her responsibilities with the Company,
d. The receipt of non-nominal gifts or excessive entertainment from any
person/company with which the Company has current or prospective business
dealings,
e. Any significant ownership interest in any supplier, customer, development
partner or competitor of the Company,
f. Any consulting or employment relationship with any supplier, customer,
business associate or competitor of the Company.
The directors, officers and employees should be scrupulous in avoiding 'conflicts of interest'
with the Company. In case there is likely to be a conflict of interest, he/she should make full
disclosure of all facts and circumstances thereof to the Board of directors or any Committee /
officer nominated for this purpose by the Board and a prior written approval should be
obtained.
3. CORPORATE OPPORTUNITIES
Directors, officers and employees owe a duty to the Company to advance its legitimate
interests when the opportunity to do so arises. Directors, officers, and employees are expressly
prohibited from:
a. Taking for themselves personally, opportunities that are discovered through
the use of Company's property, information, or position,
b. Competing directly with the business of the Company or with any
business that the Company is considering.
Honest conduct is understood as such conduct that is ethical, free from fraud or deception and
conforming to the accepted professional standards. Ethical conduct includes the ethical
handling of actual or apparent conflicts of interest between personal and professional
relationships.
2. CONFLICTS OF INTEREST
A conflict situation may arise:
a. When an employee, officer, or director takes action or has interests that may
make it difficult to perform his or her work objectively and effectively,
b. The receipt of improper personal benefits by a member of his or her family as a
result of one's position in the Company,
c. Any outside business activity that detracts an individual's ability to devote
appropriate time and attention to his or her responsibilities with the Company,
d. The receipt of non-nominal gifts or excessive entertainment from any
person/company with which the Company has current or prospective business
dealings,
e. Any significant ownership interest in any supplier, customer, development
partner or competitor of the Company,
f. Any consulting or employment relationship with any supplier, customer,
business associate or competitor of the Company.
The directors, officers and employees should be scrupulous in avoiding 'conflicts of interest'
with the Company. In case there is likely to be a conflict of interest, he/she should make full
disclosure of all facts and circumstances thereof to the Board of directors or any Committee /
officer nominated for this purpose by the Board and a prior written approval should be
obtained.
3. CORPORATE OPPORTUNITIES
Directors, officers and employees owe a duty to the Company to advance its legitimate
interests when the opportunity to do so arises. Directors, officers, and employees are expressly
prohibited from:
a. Taking for themselves personally, opportunities that are discovered through
the use of Company's property, information, or position,
b. Competing directly with the business of the Company or with any
business that the Company is considering.
14
c. Using Company's property, information, or position for personal gain. If the
Company has finally decided not to pursue an opportunity that relates to the
Company's business activity, he/she may pursue such activity only after
disclosing the same to the Board of directors or the nominated
person/committee.
4. CONNECTION WITH PRESS/TV/RADIO
The Chairman and Managing Director will appoint a Sr. Level officer of the Company
as „Spokesman‟ who would interact with the media/ radio/ press. No other officer except with
the permission of CMD will make any statement in press/ media. No officer of the Company
can criticize the Company in any article / in radio/ TV broadcast etc.
5. CONFIDENTIALITY
The directors, officers and employees shall maintain the confidentiality of confidential
information of the Company or that of any customer, supplier or business associate of the
Company to which Company has a duty to maintain confidentiality, except when disclosure is
authorized or legally mandated. The Confidential information includes all non-public
information (including private, proprietary, and other) that might be of use to competitors or
harmful to the Company or its associates. The use of confidential information for his/her own
advantage or profit is also prohibited.
6. FAIR DEALING
The Company is an equal opportunity employer providing equal access to employment
opportunities and fairness in dealings at all levels without discrimination on the basis of race,
colour, religion, gender, nationality, disability or age.
Each director, officer, and employee should deal fairly with customers, suppliers,
competitors, and employees of group companies. They should not take unfair advantage of
anyone through manipulation, concealment, abuse of confidential, proprietary or trade secret
information, misrepresentation of material facts, or any other unfair dealing-practices.
c. Using Company's property, information, or position for personal gain. If the
Company has finally decided not to pursue an opportunity that relates to the
Company's business activity, he/she may pursue such activity only after
disclosing the same to the Board of directors or the nominated
person/committee.
4. CONNECTION WITH PRESS/TV/RADIO
The Chairman and Managing Director will appoint a Sr. Level officer of the Company
as „Spokesman‟ who would interact with the media/ radio/ press. No other officer except with
the permission of CMD will make any statement in press/ media. No officer of the Company
can criticize the Company in any article / in radio/ TV broadcast etc.
5. CONFIDENTIALITY
The directors, officers and employees shall maintain the confidentiality of confidential
information of the Company or that of any customer, supplier or business associate of the
Company to which Company has a duty to maintain confidentiality, except when disclosure is
authorized or legally mandated. The Confidential information includes all non-public
information (including private, proprietary, and other) that might be of use to competitors or
harmful to the Company or its associates. The use of confidential information for his/her own
advantage or profit is also prohibited.
6. FAIR DEALING
The Company is an equal opportunity employer providing equal access to employment
opportunities and fairness in dealings at all levels without discrimination on the basis of race,
colour, religion, gender, nationality, disability or age.
Each director, officer, and employee should deal fairly with customers, suppliers,
competitors, and employees of group companies. They should not take unfair advantage of
anyone through manipulation, concealment, abuse of confidential, proprietary or trade secret
information, misrepresentation of material facts, or any other unfair dealing-practices.
15
7. PROTECTION AND PROPER USE OF COMPANY'S ASSETS
All directors, officers and employees should protect Company's assets and property and
ensure its efficient use. Theft, carelessness, and waste of the Company's assets and property
have a direct impact on the Company's profitability. Company's assets should be used only
for legitimate business purposes.
8. COMPANY FUNDS
Every Directors / Senior Management Personnel is personally responsible for all Company
funds over which he or she exercises control. Company‟s representatives should not be
allowed to exercise control over Company‟s funds. Company‟s funds must be used only for
company‟s business purposes. Directors and Senior Management Personnel must not use the
Company‟s funds for any personal purposes.
9. DISCLOSURE
Our policy is to provide full, fair, accurate, timely, and understandable disclosure in reports
and documents that are filed with, or submitted to any outside agency and in our other public
communications. Accordingly, the Officers must ensure that they and others in the Company
comply with company‟s disclosure controls and procedures, and our internal controls for
financial reporting.
10. COMPLIANCE WITH GOVERNMENTAL LAWS, RULES AND
REGULATIONS/ INTERNAL COMPANY POLICIES
Officers must comply with all applicable governmental laws, rules and regulations. Officers
must acquire appropriate knowledge of the legal requirements relating to their duties
sufficient to enable them to recognize potential dangers, and to know when to seek advice
from the finance department. Officers must comply with the company‟s internal policies.
Further, the Independent Directors shall specifically comply with all the duties enumerated
under Schedule IV to the Companies Act, 2013 or any other applicable statute as may be in
force from time to time.
7. PROTECTION AND PROPER USE OF COMPANY'S ASSETS
All directors, officers and employees should protect Company's assets and property and
ensure its efficient use. Theft, carelessness, and waste of the Company's assets and property
have a direct impact on the Company's profitability. Company's assets should be used only
for legitimate business purposes.
8. COMPANY FUNDS
Every Directors / Senior Management Personnel is personally responsible for all Company
funds over which he or she exercises control. Company‟s representatives should not be
allowed to exercise control over Company‟s funds. Company‟s funds must be used only for
company‟s business purposes. Directors and Senior Management Personnel must not use the
Company‟s funds for any personal purposes.
9. DISCLOSURE
Our policy is to provide full, fair, accurate, timely, and understandable disclosure in reports
and documents that are filed with, or submitted to any outside agency and in our other public
communications. Accordingly, the Officers must ensure that they and others in the Company
comply with company‟s disclosure controls and procedures, and our internal controls for
financial reporting.
10. COMPLIANCE WITH GOVERNMENTAL LAWS, RULES AND
REGULATIONS/ INTERNAL COMPANY POLICIES
Officers must comply with all applicable governmental laws, rules and regulations. Officers
must acquire appropriate knowledge of the legal requirements relating to their duties
sufficient to enable them to recognize potential dangers, and to know when to seek advice
from the finance department. Officers must comply with the company‟s internal policies.
Further, the Independent Directors shall specifically comply with all the duties enumerated
under Schedule IV to the Companies Act, 2013 or any other applicable statute as may be in
force from time to time.
16
11. REGULATION AND MONITORING OF INSIDER TRADING
The Board of Directors of the Company has approved a code for corporate disclosure
practices, namely, Code of Practices and Procedures for Fair Disclosure and Code of Conduct
to Regulate, Monitor and Report Trading by Designated Persons. The Promoters, Directors,
KMPs (Key Managerial Persons as defined under the Companies Act, 2013) and Designated
Persons (as defined under the Code of Conduct to Regulate, Monitor and Report Trading by
Designated Persons) must not indulge in any form of insider trading nor assist others, to
derive any undue advantage from unpublished price sensitive information. Furthermore, they
would adhere to all the Code stipulations regarding sale and purchase of the securities of the
Company.
12. WHISTLE BLOWING MECHANISM
Effective whistle blowing mechanism, namely, “Satark” procedure has been enabled in the
organization to act as a deterrent to malpractices, encourage openness, promote transparency,
underpin the Risk Management Systems and help protect the reputation of the organization.
The framework envisages a policy that lays down the process for raising a „protected
disclosure‟, the safeguards in place for the individual raising a protected disclosure, the roles
and responsibilities of all involved and also set the time lines for all processes to be followed.
In all instances, the Organization retains the prerogative to determine when circumstances
warrant an investigation and in conformity with the policy and applicable laws and
regulations, the appropriate investigative process for employees. Satark Policy is available on
the Company Website.
1. VIOLATIONS OF THE CODE
If any director, officer or employee who knows of or suspects of a violation of applicable
laws, rules or regulations or this Code of conduct, he/she must immediately report the
same to the Board of Directors or any designated person/committee thereof. Such person
should as far as possible provide the details of suspected violations with all known particulars
relating to the issue. The Company recognizes that resolving such problems or concerns will
advance the overall interests of the Company that will help to safeguard the Company's
assets, financial integrity and reputation.
Violations of this Code of Ethics will result in disciplinary action, which may even include
termination of services of the employee. The Company's Board or any Committee/person
11. REGULATION AND MONITORING OF INSIDER TRADING
The Board of Directors of the Company has approved a code for corporate disclosure
practices, namely, Code of Practices and Procedures for Fair Disclosure and Code of Conduct
to Regulate, Monitor and Report Trading by Designated Persons. The Promoters, Directors,
KMPs (Key Managerial Persons as defined under the Companies Act, 2013) and Designated
Persons (as defined under the Code of Conduct to Regulate, Monitor and Report Trading by
Designated Persons) must not indulge in any form of insider trading nor assist others, to
derive any undue advantage from unpublished price sensitive information. Furthermore, they
would adhere to all the Code stipulations regarding sale and purchase of the securities of the
Company.
12. WHISTLE BLOWING MECHANISM
Effective whistle blowing mechanism, namely, “Satark” procedure has been enabled in the
organization to act as a deterrent to malpractices, encourage openness, promote transparency,
underpin the Risk Management Systems and help protect the reputation of the organization.
The framework envisages a policy that lays down the process for raising a „protected
disclosure‟, the safeguards in place for the individual raising a protected disclosure, the roles
and responsibilities of all involved and also set the time lines for all processes to be followed.
In all instances, the Organization retains the prerogative to determine when circumstances
warrant an investigation and in conformity with the policy and applicable laws and
regulations, the appropriate investigative process for employees. Satark Policy is available on
the Company Website.
1. VIOLATIONS OF THE CODE
If any director, officer or employee who knows of or suspects of a violation of applicable
laws, rules or regulations or this Code of conduct, he/she must immediately report the
same to the Board of Directors or any designated person/committee thereof. Such person
should as far as possible provide the details of suspected violations with all known particulars
relating to the issue. The Company recognizes that resolving such problems or concerns will
advance the overall interests of the Company that will help to safeguard the Company's
assets, financial integrity and reputation.
Violations of this Code of Ethics will result in disciplinary action, which may even include
termination of services of the employee. The Company's Board or any Committee/person
17
designated by the Board for this purpose shall determine appropriate action in response to
violations of this Code of Ethics.
2. INTERPRETATION OF CODE
Any question or interpretation under this Code of Ethics and Business Conduct will be
handled by the Board or any person /committee authorised by the Board of the Company.
The Board of Directors or any designated person/committee has the authority to waive
compliance with this Code of business conduct for any director, officer or employee of the
Company. The person seeking waiver of this Code shall make full disclosure of the
particular circumstances to the Board or the designated person/ committee.
3. WAIVERS AND AMENDMENTS OF THE CODE
We are committed to continuously reviewing and updating our policies and procedures.
Therefore, this Code is subject to modification. Any amendment/ inclusion or waiver of any
provision of this Code must be approved by the Company‟s Board of Directors and promptly
applicable laws and regulations, together with details about the nature of the amendment or
waiver.
4. ACKNOWLEDGMENT
- NO‐CONSIDERATION IN RECRUITMENT PROCESS
The entire recruitment, selection and joining process followed by the company was
completely transparent and highly appreciable. I have neither been asked for nor have
I given any favour nor have I paid any consideration, monetary or otherwise, to any
officer of the company or to any other person whomsoever during and for my
recruitment/selection by the company.
- RECEIPT OF CODE OF ETHICS
I have received and read the Company‟s Code of Ethics. I understand the standards
and policies contained in the Code and understand that there may be additional
policies or laws specific to my job. I agree to comply with the Code.
designated by the Board for this purpose shall determine appropriate action in response to
violations of this Code of Ethics.
2. INTERPRETATION OF CODE
Any question or interpretation under this Code of Ethics and Business Conduct will be
handled by the Board or any person /committee authorised by the Board of the Company.
The Board of Directors or any designated person/committee has the authority to waive
compliance with this Code of business conduct for any director, officer or employee of the
Company. The person seeking waiver of this Code shall make full disclosure of the
particular circumstances to the Board or the designated person/ committee.
3. WAIVERS AND AMENDMENTS OF THE CODE
We are committed to continuously reviewing and updating our policies and procedures.
Therefore, this Code is subject to modification. Any amendment/ inclusion or waiver of any
provision of this Code must be approved by the Company‟s Board of Directors and promptly
applicable laws and regulations, together with details about the nature of the amendment or
waiver.
4. ACKNOWLEDGMENT
- NO‐CONSIDERATION IN RECRUITMENT PROCESS
The entire recruitment, selection and joining process followed by the company was
completely transparent and highly appreciable. I have neither been asked for nor have
I given any favour nor have I paid any consideration, monetary or otherwise, to any
officer of the company or to any other person whomsoever during and for my
recruitment/selection by the company.
- RECEIPT OF CODE OF ETHICS
I have received and read the Company‟s Code of Ethics. I understand the standards
and policies contained in the Code and understand that there may be additional
policies or laws specific to my job. I agree to comply with the Code.
18
If I have questions concerning the meaning or application of the Code, any Company
policies, or the legal and regulatory requirements applicable to my job, I understand I can
consult the HR/ Secretarial Department, and that my questions or reports to these sources
will be maintained in confidence.
If I have questions concerning the meaning or application of the Code, any Company
policies, or the legal and regulatory requirements applicable to my job, I understand I can
consult the HR/ Secretarial Department, and that my questions or reports to these sources
will be maintained in confidence.
19
HAVELLS INDIA PORTER FIVE FORCES ANALYSIS
Threat of New Entrants
High entry barriers for the industry, so threat is low
due to the following:
• Advance technology for high quality products
• High capital required
• Oligopolistic market: Few players controlling the
market
• Existing players have their channel network,
making it an effective entry barrier for new
entrants
Threat of Subsidiaries
• Rare in electrical and lighting industry, so
threat of substitute product is low
• In industrial electrical sector automation
products (eg. PLCs) are forcing out use of
conventional electrical products.
Industry Rivalry
Switchgear & Switches: L&T, Siemens, ABB, Legrand, Indo- Asian
Cable & Wire: Polycab, Finolex, CCI, Universal cables
Electrical Consumer Durable: GE, Crompton Greaves, Bajaj Electricals,
Usha
Lighting Industry: Philips, OSRAM, Wipro, Bajaj, SYSKA, Eveready
Bargaining Power of Suppliers
• Large number of suppliers, hence low barging
power of suppliers
• Ease of availability of raw materials
• Industry wide trend of backward integration,
further reduces the bargaining power of suppliers
Bargaining Power of Buyers
• Highly fragmented customer base, hence low
bargaining power of buyers for electrical industry
• Institutional buyers and wholesalers are relatively
few in numbers, hence high bargaining power for
them
• Big retail chains like Walmart, Big Bazar are large
consumers of lighting products, and hence high
bargaining power for them
HAVELLS INDIA PORTER FIVE FORCES ANALYSIS
Threat of New Entrants
High entry barriers for the industry, so threat is low
due to the following:
• Advance technology for high quality products
• High capital required
• Oligopolistic market: Few players controlling the
market
• Existing players have their channel network,
making it an effective entry barrier for new
entrants
Threat of Subsidiaries
• Rare in electrical and lighting industry, so
threat of substitute product is low
• In industrial electrical sector automation
products (eg. PLCs) are forcing out use of
conventional electrical products.
Industry Rivalry
Switchgear & Switches: L&T, Siemens, ABB, Legrand, Indo- Asian
Cable & Wire: Polycab, Finolex, CCI, Universal cables
Electrical Consumer Durable: GE, Crompton Greaves, Bajaj Electricals,
Usha
Lighting Industry: Philips, OSRAM, Wipro, Bajaj, SYSKA, Eveready
Bargaining Power of Suppliers
• Large number of suppliers, hence low barging
power of suppliers
• Ease of availability of raw materials
• Industry wide trend of backward integration,
further reduces the bargaining power of suppliers
Bargaining Power of Buyers
• Highly fragmented customer base, hence low
bargaining power of buyers for electrical industry
• Institutional buyers and wholesalers are relatively
few in numbers, hence high bargaining power for
them
• Big retail chains like Walmart, Big Bazar are large
consumers of lighting products, and hence high
bargaining power for them
20
What is Porter Five Forces? How Havells India can use it?
Decision Makers at Havells India (India) can use Porter Five Forces as a strategic management tool
to do industry analysis. It will help Decision Makers at Havells India in mapping the various
competitive forces that are prevalent in Basic Materials industry in both local markets and
international markets. EMBA Pro provides highly professional custom- Porter 5 Forces case study
solution, analysis methodology & assignment help. Havells India (HVEL) is listed on NSE stock
exchange and has a market capital of 421.73B. The company has annual revenues of - and has a P/E
ratio of -.
How Havells India (India) can use Porter Five Forces
Rigorous application of Porter 5 Forces can help managers at Havells India to understand -
Rivalry among existing players in the Misc. Fabricated Products,
Bargaining power of buyers of Havells India,
Bargaining power of suppliers of Havells India,
Threat of new entrants in the Misc. Fabricated Products industry,
Threat of substitute products and services in the Misc. Fabricated Products industry.
Introduction to Porter Five Forces
First published in 1979, “How Competitive Forces Shape Strategy” by Michael E. Porter,
revolutionized the field of strategy. Popularly known as “Porter‟s Five Forces” - not only
influenced a generation of academic research but also provided a map to rigorously analyze the
competitive forces.
Porter Five Forces that Determine Misc. Fabricated Products Industry
Structure
The Porter Five Forces that determine the industry structure in Misc. Fabricated Products are -
What is Porter Five Forces? How Havells India can use it?
Decision Makers at Havells India (India) can use Porter Five Forces as a strategic management tool
to do industry analysis. It will help Decision Makers at Havells India in mapping the various
competitive forces that are prevalent in Basic Materials industry in both local markets and
international markets. EMBA Pro provides highly professional custom- Porter 5 Forces case study
solution, analysis methodology & assignment help. Havells India (HVEL) is listed on NSE stock
exchange and has a market capital of 421.73B. The company has annual revenues of - and has a P/E
ratio of -.
How Havells India (India) can use Porter Five Forces
Rigorous application of Porter 5 Forces can help managers at Havells India to understand -
Rivalry among existing players in the Misc. Fabricated Products,
Bargaining power of buyers of Havells India,
Bargaining power of suppliers of Havells India,
Threat of new entrants in the Misc. Fabricated Products industry,
Threat of substitute products and services in the Misc. Fabricated Products industry.
Introduction to Porter Five Forces
First published in 1979, “How Competitive Forces Shape Strategy” by Michael E. Porter,
revolutionized the field of strategy. Popularly known as “Porter‟s Five Forces” - not only
influenced a generation of academic research but also provided a map to rigorously analyze the
competitive forces.
Porter Five Forces that Determine Misc. Fabricated Products Industry
Structure
The Porter Five Forces that determine the industry structure in Misc. Fabricated Products are -
21
1. Bargaining power of suppliers in Misc. Fabricated Products – If suppliers have strong bargaining
power then they will extract higher price from the Havells India. It will impact the potential of
Havells India to maintain above average profits in Misc. Fabricated Products industry.
2. Bargaining power of buyers of Havells India and Basic Materials sector – If the buyers have
strong bargaining power then they usually tend to drive price down thus limiting the potential of the
Havells India to earn sustainable profits
3. Rivalry among existing players in Misc. Fabricated Products industry – If competition is intense
then it becomes difficult for existing players such as Havells India to earn sustainable profits.
4. Threat of substitute products and services in Misc. Fabricated Products sector – If the threat of
substitute is high then Havells India has to either continuously invest into R&D or it risks losing out
to disruptors in the industry.
5. Threat of new entrants in Misc. Fabricated Products industry – if there is strong threat of new
entrants in the Misc. Fabricated Products industry then current players will be willing to earn lower
profits to reduce the threats from new players
Why Porter Five Forces analysis is important for Havells India?
Decision Makers can use Porter Five Forces model to analyze the competitiveness faced by Havells
India in Misc. Fabricated Products industry. Porter five forces analysis of Havells India will help in
understanding and providing solution to – nature & level of competition, and how Havells India can
cope with competition.
Even though from outside various industries seem extremely different but analyzed closely these
five forces determines the drivers of profitability in each industry. (Decision Makers can use Porter
Five Forces to understand key drivers of profitability of Havells India in Misc. Fabricated Products
industry.
1. Bargaining power of suppliers in Misc. Fabricated Products – If suppliers have strong bargaining
power then they will extract higher price from the Havells India. It will impact the potential of
Havells India to maintain above average profits in Misc. Fabricated Products industry.
2. Bargaining power of buyers of Havells India and Basic Materials sector – If the buyers have
strong bargaining power then they usually tend to drive price down thus limiting the potential of the
Havells India to earn sustainable profits
3. Rivalry among existing players in Misc. Fabricated Products industry – If competition is intense
then it becomes difficult for existing players such as Havells India to earn sustainable profits.
4. Threat of substitute products and services in Misc. Fabricated Products sector – If the threat of
substitute is high then Havells India has to either continuously invest into R&D or it risks losing out
to disruptors in the industry.
5. Threat of new entrants in Misc. Fabricated Products industry – if there is strong threat of new
entrants in the Misc. Fabricated Products industry then current players will be willing to earn lower
profits to reduce the threats from new players
Why Porter Five Forces analysis is important for Havells India?
Decision Makers can use Porter Five Forces model to analyze the competitiveness faced by Havells
India in Misc. Fabricated Products industry. Porter five forces analysis of Havells India will help in
understanding and providing solution to – nature & level of competition, and how Havells India can
cope with competition.
Even though from outside various industries seem extremely different but analyzed closely these
five forces determines the drivers of profitability in each industry. (Decision Makers can use Porter
Five Forces to understand key drivers of profitability of Havells India in Misc. Fabricated Products
industry.
22
Porter 5 Forces, Competitive Forces & Industry Analysis
The core objective of strategists and leaders at Havells India is to help the organization to build a
sustainable competitive advantage and thwart competitive challenges from other players in the
Misc. Fabricated Products industry.
Step 1 – Defining relevant industry for Havells India. For the purpose of this paper Havells India
does mostly its business in Misc. Fabricated Products industry.
Step 2 – Identify the competitors of Havells India and group them based on the segments within the
Basic Materials industry.
Step 3- Assess the Porter Five Forces in relation to the Misc. Fabricated Products industry and
assess which forces are strong in Misc. Fabricated Products and which forces are weak.
Step 4 - Determine overall Basic Materials industry structure and test analysis for consistency
Step 5 – Analyze recent and future changes in each of the forces in the Misc. Fabricated Products
industry. This can help in predicting the trend in overall Basic Materials sector.
Step 6 – Identify aspects of industry structure based on Porter Five Forces that might be influenced
by Havells India competitors and new entrants in Misc. Fabricated Products industry.
How Porter Five Forces framework can be used for developing strategies for
Havells India ?
To achieve above average profits compare to other players in Misc. Fabricated Products industry in
the long run, Havells India needs to develop a sustainable competitive advantage. Misc. Fabricated
Products industry analysis using Porter Five Forces can help Havells India to map the various
forces and identify spaces where Havells India can position itself.
By doing Industry analysis using Porter Five Forces, Havells India can develop four generic
competitive strategies.
Porter 5 Forces, Competitive Forces & Industry Analysis
The core objective of strategists and leaders at Havells India is to help the organization to build a
sustainable competitive advantage and thwart competitive challenges from other players in the
Misc. Fabricated Products industry.
Step 1 – Defining relevant industry for Havells India. For the purpose of this paper Havells India
does mostly its business in Misc. Fabricated Products industry.
Step 2 – Identify the competitors of Havells India and group them based on the segments within the
Basic Materials industry.
Step 3- Assess the Porter Five Forces in relation to the Misc. Fabricated Products industry and
assess which forces are strong in Misc. Fabricated Products and which forces are weak.
Step 4 - Determine overall Basic Materials industry structure and test analysis for consistency
Step 5 – Analyze recent and future changes in each of the forces in the Misc. Fabricated Products
industry. This can help in predicting the trend in overall Basic Materials sector.
Step 6 – Identify aspects of industry structure based on Porter Five Forces that might be influenced
by Havells India competitors and new entrants in Misc. Fabricated Products industry.
How Porter Five Forces framework can be used for developing strategies for
Havells India ?
To achieve above average profits compare to other players in Misc. Fabricated Products industry in
the long run, Havells India needs to develop a sustainable competitive advantage. Misc. Fabricated
Products industry analysis using Porter Five Forces can help Havells India to map the various
forces and identify spaces where Havells India can position itself.
By doing Industry analysis using Porter Five Forces, Havells India can develop four generic
competitive strategies.
23
The Four Generic Strategies Based on Porter Five Forces Analysis of Havells India
Cost Leadership
In cost leadership, Havells India can set out to become the low cost producer in the iMisc.
Fabricated Products industry. How it can become cost leader varies based on the Basic Materials
industry forces and structure. In pursuing cost leadership strategy, company name can assess –
pursuit of economies of scale, proprietary technology, supply chain management options,
diversification of suppliers, preferential access to raw materials and other factors.
Differentiation
Havells India can also pursue differentiation strategy based on the Misc. Fabricated Products
industry forces. In a differentiation strategy Havells India can seek to be unique in the Misc.
Fabricated Products industry by providing a value proposition that is cherished by customers.
Havells India can select one or more attributes in terms of products and services that customers in
the Misc. Fabricated Products values most. The goal is to seek premium price because of
differentiation and uniqueness of the offerings. Industry analysis of Misc. Fabricated Products using
Porter Five Forces can help Havells India to avoid spaces that are already over populated by the
competitors.
Focus - Cost Focus & Differentiation Focus
The generic strategy of Focus rests on the choice of competitive scope within the Misc. Fabricated
Products industry. Havells India can select a segment or group of segment and tailor its strategy to
only serve it. Most organization follows one variant of focus strategy in real world.
The Focus Strategy has two variants for Havells India
(a) In cost focus a Havells India can seek a cost advantage in its choses segment in Basic
Materials sector.
(b) In Differentiation strategy company name can differentiate itself in a target segment in the
Basic Materials sector.
The Four Generic Strategies Based on Porter Five Forces Analysis of Havells India
Cost Leadership
In cost leadership, Havells India can set out to become the low cost producer in the iMisc.
Fabricated Products industry. How it can become cost leader varies based on the Basic Materials
industry forces and structure. In pursuing cost leadership strategy, company name can assess –
pursuit of economies of scale, proprietary technology, supply chain management options,
diversification of suppliers, preferential access to raw materials and other factors.
Differentiation
Havells India can also pursue differentiation strategy based on the Misc. Fabricated Products
industry forces. In a differentiation strategy Havells India can seek to be unique in the Misc.
Fabricated Products industry by providing a value proposition that is cherished by customers.
Havells India can select one or more attributes in terms of products and services that customers in
the Misc. Fabricated Products values most. The goal is to seek premium price because of
differentiation and uniqueness of the offerings. Industry analysis of Misc. Fabricated Products using
Porter Five Forces can help Havells India to avoid spaces that are already over populated by the
competitors.
Focus - Cost Focus & Differentiation Focus
The generic strategy of Focus rests on the choice of competitive scope within the Misc. Fabricated
Products industry. Havells India can select a segment or group of segment and tailor its strategy to
only serve it. Most organization follows one variant of focus strategy in real world.
The Focus Strategy has two variants for Havells India
(a) In cost focus a Havells India can seek a cost advantage in its choses segment in Basic
Materials sector.
(b) In Differentiation strategy company name can differentiate itself in a target segment in the
Basic Materials sector.
24
Both variants of the focus strategy rest on differences between a Havells India‟s target segment and
other segments in the Misc. Fabricated Products industry.
COMPETITIVE ADVANTAGE
Havells is the market leader in the “residential switchgear” segment and it is the
most profitable segment for Havells.
High degree of automation across production lines, which ensures the quality of
products and efficiency of the process. The Baddi plant is among the most
automated
switchgear/switches plant in India. 60-70% of the switchgear manufacturing process
is automated, with only the spot welding process requiring manual intervention.
Within switches, it recently installed three fully-automated switch assembly
machines, which have made the process faster and reduced headcount by 15
employees.
Havells manufacturers 90% of all its products in-house only. For strict control over
the supply chain and cost of supplies, Havells makes most components, moulds and
dies in- house.
Havells extensive network of distributors works to its advantage in reaching the far
corners of the country. Within India alone the Company has a presence in over 1 lac
retail outlets that are serviced by an extensive distribution network. The Company
also has 400 chain of exclusive brand showrooms called Havells Galaxy that caters
to both industrial and consumer products.
Without compromising the quality, Havells India Ltd has introduced modular
switches ranging from economical price to premium price under different brands.
HAVELLS’ MARKETING STRATEGY AND INTERESTING REASONS
BEHIND ITS GRAND SUCCESS
The exciting BEE 5-star fan, CFLs and other lights are launched by this company. In 2003, the
company earns a reputation just for its decorative fans with some amazing features. Then another
Both variants of the focus strategy rest on differences between a Havells India‟s target segment and
other segments in the Misc. Fabricated Products industry.
COMPETITIVE ADVANTAGE
Havells is the market leader in the “residential switchgear” segment and it is the
most profitable segment for Havells.
High degree of automation across production lines, which ensures the quality of
products and efficiency of the process. The Baddi plant is among the most
automated
switchgear/switches plant in India. 60-70% of the switchgear manufacturing process
is automated, with only the spot welding process requiring manual intervention.
Within switches, it recently installed three fully-automated switch assembly
machines, which have made the process faster and reduced headcount by 15
employees.
Havells manufacturers 90% of all its products in-house only. For strict control over
the supply chain and cost of supplies, Havells makes most components, moulds and
dies in- house.
Havells extensive network of distributors works to its advantage in reaching the far
corners of the country. Within India alone the Company has a presence in over 1 lac
retail outlets that are serviced by an extensive distribution network. The Company
also has 400 chain of exclusive brand showrooms called Havells Galaxy that caters
to both industrial and consumer products.
Without compromising the quality, Havells India Ltd has introduced modular
switches ranging from economical price to premium price under different brands.
HAVELLS’ MARKETING STRATEGY AND INTERESTING REASONS
BEHIND ITS GRAND SUCCESS
The exciting BEE 5-star fan, CFLs and other lights are launched by this company. In 2003, the
company earns a reputation just for its decorative fans with some amazing features. Then another
25
feather added to the crown of this company when it has launched the first-ever world‟s brightest
LED with LUMENO.
Currently, the company is a brand for all types of electrical gadgets and manufacture Domestic
Water Pumps, electrical wire accessories, water purifiers, water heaters, capacitors, air coolers and
purifiers and lots more. Other small appliances with essential electrical spare parts like BCP, MCB
and ICP, bulbs, LED lights and motors are also widely available due to this leading electrical
company.
Havells have reached the pinnacle of success a stand-alone company for electrical in the world. The
marketing strategies of this company are given below:
Sponsorship strategy: Havells have acquired the chance of sponsoring global events like T20
World Cup, Champions League, Champions Trophy and global Indian events like IPL season 1 and
IPL season 2. By sponsoring these events, it has endorsed its brand to reach out to the global
audience.
One-stop shop solution: Havells have set up the Havells Galaxy just to provide the
common to shop all necessary electrical from a single shop. It ensures that the customers
can obtain the exemplary quality product here.
Establishment of Smart learning solution: Being the leading company, in 2010, Havells
have inaugurated the world‟s first learning and display center for the students in New Delhi
namely Havells World.
Customer analysis: The Company is aimed to avail its products in the tier-3 and tier-2
cities which will cover the rural markets. It tries to reach customers with high-quality
products and premium perception. It caters B2B customers for Heavy Duty Fans, Motors,
and Cable in the Industrial sector.
Distribution Strategy: it has been set up the connection to the rural areas with the
assistance of 3-tiers of omnichannel. It has hired 580 Channel Partners, 220000 Electricians,
100000+ Retailers, and 7575 Direct Dealers to serve the customers at the remote corners of
feather added to the crown of this company when it has launched the first-ever world‟s brightest
LED with LUMENO.
Currently, the company is a brand for all types of electrical gadgets and manufacture Domestic
Water Pumps, electrical wire accessories, water purifiers, water heaters, capacitors, air coolers and
purifiers and lots more. Other small appliances with essential electrical spare parts like BCP, MCB
and ICP, bulbs, LED lights and motors are also widely available due to this leading electrical
company.
Havells have reached the pinnacle of success a stand-alone company for electrical in the world. The
marketing strategies of this company are given below:
Sponsorship strategy: Havells have acquired the chance of sponsoring global events like T20
World Cup, Champions League, Champions Trophy and global Indian events like IPL season 1 and
IPL season 2. By sponsoring these events, it has endorsed its brand to reach out to the global
audience.
One-stop shop solution: Havells have set up the Havells Galaxy just to provide the
common to shop all necessary electrical from a single shop. It ensures that the customers
can obtain the exemplary quality product here.
Establishment of Smart learning solution: Being the leading company, in 2010, Havells
have inaugurated the world‟s first learning and display center for the students in New Delhi
namely Havells World.
Customer analysis: The Company is aimed to avail its products in the tier-3 and tier-2
cities which will cover the rural markets. It tries to reach customers with high-quality
products and premium perception. It caters B2B customers for Heavy Duty Fans, Motors,
and Cable in the Industrial sector.
Distribution Strategy: it has been set up the connection to the rural areas with the
assistance of 3-tiers of omnichannel. It has hired 580 Channel Partners, 220000 Electricians,
100000+ Retailers, and 7575 Direct Dealers to serve the customers at the remote corners of
26
the country.
Marketing analysis: Several Miro aspects such as the percentage of middle-class people,
total population, and infrastructure development via electrification are considered playing a
big role in its success. Young demographics that have set foot in this electrical world are
also recognized as its factors.
BCG MATRIX IN HAVELLS :-
Indian Operations of the Company are divided into 4 key segments:
Switchgear:
Havells is the largest manufacturers of MCBs, RCCBs, and distribution boards in India .With the
market share of around 25% in the market for MCBs. In FY08, switchgear contributed 25% at Rs.
5420 million to its overall revenue. This segment is the most profitable one with operating margins
to the tune of 33% in the FY08. The Company currently exports MCBs to over countries, including
the quality conscious European countries. The Company is the number one player in domestic
switchboards with more than 20% market share and is the 4th largest in Industrial switch boards.
With continued investment in power sector they expect Company to grow at 15% CAGR over
FY08-FY12.Switch Gear division had EBIT margins of 32% for Q3FY09. They expect margins in
this business will remain stable above 30% over long term.
Cable and Wires:
The cable & wire segment generated Rs 2133 million in the Q3FY09 registering y-o-y de-growth of
14% EBIT margins fell from 9.5% 9M YTD FY08 to 5.4% in FY09. Fall in revenues was
registered due to drop in prices of cables and wires and huge margin drop in was due adjustment in
inventory due to massive reduction in prices of Copper in this Quarter. Company had negative
EBIT of Rs. -76 million on revenues of Rs. 2133 million for Q3.The Company is recognized as
quality manufacturers of cable & wires and offers a complete range of low and high voltage PVC
and XLPE cables, besides, domestic/FRLS wires, Co-Axial TV and telephone cables.
the country.
Marketing analysis: Several Miro aspects such as the percentage of middle-class people,
total population, and infrastructure development via electrification are considered playing a
big role in its success. Young demographics that have set foot in this electrical world are
also recognized as its factors.
BCG MATRIX IN HAVELLS :-
Indian Operations of the Company are divided into 4 key segments:
Switchgear:
Havells is the largest manufacturers of MCBs, RCCBs, and distribution boards in India .With the
market share of around 25% in the market for MCBs. In FY08, switchgear contributed 25% at Rs.
5420 million to its overall revenue. This segment is the most profitable one with operating margins
to the tune of 33% in the FY08. The Company currently exports MCBs to over countries, including
the quality conscious European countries. The Company is the number one player in domestic
switchboards with more than 20% market share and is the 4th largest in Industrial switch boards.
With continued investment in power sector they expect Company to grow at 15% CAGR over
FY08-FY12.Switch Gear division had EBIT margins of 32% for Q3FY09. They expect margins in
this business will remain stable above 30% over long term.
Cable and Wires:
The cable & wire segment generated Rs 2133 million in the Q3FY09 registering y-o-y de-growth of
14% EBIT margins fell from 9.5% 9M YTD FY08 to 5.4% in FY09. Fall in revenues was
registered due to drop in prices of cables and wires and huge margin drop in was due adjustment in
inventory due to massive reduction in prices of Copper in this Quarter. Company had negative
EBIT of Rs. -76 million on revenues of Rs. 2133 million for Q3.The Company is recognized as
quality manufacturers of cable & wires and offers a complete range of low and high voltage PVC
and XLPE cables, besides, domestic/FRLS wires, Co-Axial TV and telephone cables.
27
Lightning and Fixtures
During FY08, the turnover of the division grew at 25% y-o-y to Rs 2900 million, first quarter
revenues stood at 650 million, 11% up from same period of previous year. The Company generated
operating profit of Rs.190 million with 26.7% margins as against 12.3% margin last year. In this
division, the Company expanded its CFL capacity to become the largest CFL manufacturer in the
country. They expect Company to aggressively pitch this segment by launching a range of products
in lightings and fixtures as it brings products from the stable of Sylvania into the Indian markets.
Currently 60% of the CFL and only 30% of the fixtures market is organized. Their estimates put
Lightings and Fixtures business growth at 25% CAGR FY10E –FY12E as industrial growth is
likely to pick up.
Electrical Consumer Deliverables & Others
Havells also offers products like electric fans, meters and ‘Crabtree’ brand bath fittings which are
largely consumer products and add diversity to Havells product profile. With strong brand image
among domestic consumers, Havells may launch new products like Geysers in this segment. They
believe the electric fan segment, which contributes 10% to consolidated revenues, and generates
operating margins in excess of 20%, is the key focus segment. The Company has increased its share
form 3% to 13% in the organized fan market of INR 17 bn. from FY05 to FY08.They expect
Company‟s top line to grow at CAGR of 25% as industry growth likely to pickup and organized
players increase their share in the market.
Lightning and Fixtures
During FY08, the turnover of the division grew at 25% y-o-y to Rs 2900 million, first quarter
revenues stood at 650 million, 11% up from same period of previous year. The Company generated
operating profit of Rs.190 million with 26.7% margins as against 12.3% margin last year. In this
division, the Company expanded its CFL capacity to become the largest CFL manufacturer in the
country. They expect Company to aggressively pitch this segment by launching a range of products
in lightings and fixtures as it brings products from the stable of Sylvania into the Indian markets.
Currently 60% of the CFL and only 30% of the fixtures market is organized. Their estimates put
Lightings and Fixtures business growth at 25% CAGR FY10E –FY12E as industrial growth is
likely to pick up.
Electrical Consumer Deliverables & Others
Havells also offers products like electric fans, meters and ‘Crabtree’ brand bath fittings which are
largely consumer products and add diversity to Havells product profile. With strong brand image
among domestic consumers, Havells may launch new products like Geysers in this segment. They
believe the electric fan segment, which contributes 10% to consolidated revenues, and generates
operating margins in excess of 20%, is the key focus segment. The Company has increased its share
form 3% to 13% in the organized fan market of INR 17 bn. from FY05 to FY08.They expect
Company‟s top line to grow at CAGR of 25% as industry growth likely to pickup and organized
players increase their share in the market.
28
Stars
Switchgears as the number
one player in domestic
switchboards with more
than 20% market share
With high growth rate.
Question Marks
Electrical consumer
Deliverables & Others
products like
CRABTREE switches,
Geyser, Air-conditioner
have the ability to gain
market share.
Cash Cow
Lighting and Fixtures
Products like Sylvania due to
cultural difference and cost
rationalization undergo
retrenchment, and divestment
in Europe, basically outsource
its products from India.
Dogs
Cables and wires
Low growth as well as
market shares in market.
Key focusing strategies for future growth –
• Since Construction and real Estate sector has slowed down, they expect demand to go down in
near future and will pick up slowly.
• Although investments in power sector will continue to rise but Havells will not be able to take
complete advantage as it does not manufacture some range of High Tension cables.
• During the FY08, the Company had almost doubled its capacity. Havells‟ strong brand value and
aggressive marketing to help it grow its top line for its cables and wires segment..
L H
20% M
18% A
16% R
14% K
12% E
10% T
8% G
6% R
4% O
2% W
0% T
H
H
L
Relative Market Share
Stars
Switchgears as the number
one player in domestic
switchboards with more
than 20% market share
With high growth rate.
Question Marks
Electrical consumer
Deliverables & Others
products like
CRABTREE switches,
Geyser, Air-conditioner
have the ability to gain
market share.
Cash Cow
Lighting and Fixtures
Products like Sylvania due to
cultural difference and cost
rationalization undergo
retrenchment, and divestment
in Europe, basically outsource
its products from India.
Dogs
Cables and wires
Low growth as well as
market shares in market.
Key focusing strategies for future growth –
• Since Construction and real Estate sector has slowed down, they expect demand to go down in
near future and will pick up slowly.
• Although investments in power sector will continue to rise but Havells will not be able to take
complete advantage as it does not manufacture some range of High Tension cables.
• During the FY08, the Company had almost doubled its capacity. Havells‟ strong brand value and
aggressive marketing to help it grow its top line for its cables and wires segment..
L H
20% M
18% A
16% R
14% K
12% E
10% T
8% G
6% R
4% O
2% W
0% T
H
H
L
Relative Market Share
29
MCKINSEY 7S FRAMEWORK OF HAVELLS INDIA ENTERS PERSONAL
GROOMING SPACE
The McKinsey 7s model is a strategic tool and framework that helps managers and businesses
assess their performance. The McKinsey 7s model identifies 7 key elements for an organization that
need to be focused and aligned for successful change management processes as well as for regular
performance enhancements.
Figure 1 McKinsey 7S Model
The 7 elements identified in the McKinsey 7s model can be categorized as being hard or soft in
nature. They are identified as:
Hard Elements Soft Elements
Shared Values
Strategy Skills
Structure Style
Systems Staff
MCKINSEY 7S FRAMEWORK OF HAVELLS INDIA ENTERS PERSONAL
GROOMING SPACE
The McKinsey 7s model is a strategic tool and framework that helps managers and businesses
assess their performance. The McKinsey 7s model identifies 7 key elements for an organization that
need to be focused and aligned for successful change management processes as well as for regular
performance enhancements.
Figure 1 McKinsey 7S Model
The 7 elements identified in the McKinsey 7s model can be categorized as being hard or soft in
nature. They are identified as:
Hard Elements Soft Elements
Shared Values
Strategy Skills
Structure Style
Systems Staff
30
Figure 2 Hard and Soft elements of the McKinsey 7S Model
Havells India Enters Personal Grooming Space makes use of the McKinsey 7s model to regularly
enhance its performance, and implement successful change management processes. Havells India
Enters Personal Grooming Space focuses on the 7 elements identified in the model to ensure that its
performance levels are consistently maintained, and improved for the offerings.
1. Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and systems. The
hard elements of the model are easier to identify, more tangible in nature, and directly controlled
and influenced by the leadership and management of the organization.
1.1. Strategy
1.1.1. Clearly defined
The strategic direction and the overall business strategy for Havells India Enters Personal
Grooming Space are clearly defined and communicated to all the employees and stakeholders. This
helps the organization manage performance, guide actions, and devise different tactics that are
aligned with the business strategy. Moreover, the business strategy‟s definition and communication
also make operations for Havells India Enters Personal Grooming Space more transparent and
aligns the responsibilities and actions of the company.
1.1.2. Guiding behaviour for goal attainment
The strategic direction for Havells India Enters Personal Grooming Space is also important in
helping the business guide employee, staff, and stakeholder behaviour towards the attainment and
achievement of goals. SMART Goals are set with short and long term deadlines in accordance with
the business strategy. The business strategy helps employees decide tactics and behaviours for
attaining the set goals and targets to help the business grow.
1.1.3. Competitive pressures
Havells India Enters Personal Grooming Space‟s strategy also takes into consideration the
competitive pressures and activities of competitors. The strategy addresses these competitive
pressures through suggestive measures and actions to address competition via strategic tactics and
activities that ensure sustainability to Havells India Enters Personal Grooming Space via adapting
to market changes, and evolving consumer trends and demands.
Figure 2 Hard and Soft elements of the McKinsey 7S Model
Havells India Enters Personal Grooming Space makes use of the McKinsey 7s model to regularly
enhance its performance, and implement successful change management processes. Havells India
Enters Personal Grooming Space focuses on the 7 elements identified in the model to ensure that its
performance levels are consistently maintained, and improved for the offerings.
1. Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and systems. The
hard elements of the model are easier to identify, more tangible in nature, and directly controlled
and influenced by the leadership and management of the organization.
1.1. Strategy
1.1.1. Clearly defined
The strategic direction and the overall business strategy for Havells India Enters Personal
Grooming Space are clearly defined and communicated to all the employees and stakeholders. This
helps the organization manage performance, guide actions, and devise different tactics that are
aligned with the business strategy. Moreover, the business strategy‟s definition and communication
also make operations for Havells India Enters Personal Grooming Space more transparent and
aligns the responsibilities and actions of the company.
1.1.2. Guiding behaviour for goal attainment
The strategic direction for Havells India Enters Personal Grooming Space is also important in
helping the business guide employee, staff, and stakeholder behaviour towards the attainment and
achievement of goals. SMART Goals are set with short and long term deadlines in accordance with
the business strategy. The business strategy helps employees decide tactics and behaviours for
attaining the set goals and targets to help the business grow.
1.1.3. Competitive pressures
Havells India Enters Personal Grooming Space‟s strategy also takes into consideration the
competitive pressures and activities of competitors. The strategy addresses these competitive
pressures through suggestive measures and actions to address competition via strategic tactics and
activities that ensure sustainability to Havells India Enters Personal Grooming Space via adapting
to market changes, and evolving consumer trends and demands.
31
1.1.4. Changing consumer demands
An important aspect of the strategy at Havells India Enters Personal Grooming Space is that it takes
into constant consideration the changing consumer trends and demands, as well as the evolving
consumer market patterns and consumption behavior. This is an important part of the strategic
direction at Havells India Enters Personal Grooming Space as it allows the company to remain
competitive and relevant to its target consumer groups, as well as allows the company to identify
demand gaps in the consumer market.
The company then strategically addresses these gaps through product offerings and marketing
activities which give the company successful and leading-edge over other patterns in the market.
1.1.5. Flexibility and adaptability
The strategy at Havells India Enters Personal Grooming Space is flexible and adaptable. This is an
important aspect of the strategic direction, and strategy setting at Havells India Enters Personal
Grooming Space. Rigidity in strategy leads a company and a business to often become stagnant and
obstructs advancement, and progression with evolving changes in the consumer markets.
With flexibility and adaptability, the Havells India Enters Personal Grooming Space is not only able
to benefit from quickly reacting and responding to changing consumer patterns globally, but is also
able to locally and culturally adapt its products via localization for different countries and regions.
Moreover, the company is often able to proactively predict consumer market changes, and devise
strategic changes accordingly to meet the market trends.
1.2. Structure
1.2.1. Organizational hierarchy
Havells India Enters Personal Grooming Space has a flatter organizational hierarchy that is
supported by learning and progressive organizations. With lesser managerial levels in between and
more access to the senior management and leadership, the employees feel more secure and
confident and also have higher access to information. Moreover, the flatter hierarchy also allows
quicker decision-making processes for Havells India Enters Personal Grooming Space and
increases organizational commitment in the employees.
1.1.4. Changing consumer demands
An important aspect of the strategy at Havells India Enters Personal Grooming Space is that it takes
into constant consideration the changing consumer trends and demands, as well as the evolving
consumer market patterns and consumption behavior. This is an important part of the strategic
direction at Havells India Enters Personal Grooming Space as it allows the company to remain
competitive and relevant to its target consumer groups, as well as allows the company to identify
demand gaps in the consumer market.
The company then strategically addresses these gaps through product offerings and marketing
activities which give the company successful and leading-edge over other patterns in the market.
1.1.5. Flexibility and adaptability
The strategy at Havells India Enters Personal Grooming Space is flexible and adaptable. This is an
important aspect of the strategic direction, and strategy setting at Havells India Enters Personal
Grooming Space. Rigidity in strategy leads a company and a business to often become stagnant and
obstructs advancement, and progression with evolving changes in the consumer markets.
With flexibility and adaptability, the Havells India Enters Personal Grooming Space is not only able
to benefit from quickly reacting and responding to changing consumer patterns globally, but is also
able to locally and culturally adapt its products via localization for different countries and regions.
Moreover, the company is often able to proactively predict consumer market changes, and devise
strategic changes accordingly to meet the market trends.
1.2. Structure
1.2.1. Organizational hierarchy
Havells India Enters Personal Grooming Space has a flatter organizational hierarchy that is
supported by learning and progressive organizations. With lesser managerial levels in between and
more access to the senior management and leadership, the employees feel more secure and
confident and also have higher access to information. Moreover, the flatter hierarchy also allows
quicker decision-making processes for Havells India Enters Personal Grooming Space and
increases organizational commitment in the employees.
32
1.2.2. Inter-Departmental coordination
Havells India Enters Personal Grooming Space has high coordination between different
departments. The company‟s departments often form inter-department teams for projects and tasks
that require multiple expertise. All coordination between different departments is effective and
organized. Havells India Enters Personal Grooming Space has a systematic process for initiating
and monitoring coordination between departments to ensure smooth work operations and processes
– and goal attainment.
1.2.3. Internal team dynamics [department specific]
Havells India Enters Personal Grooming Space encourages teamwork and team-oriented tasks.
Where jobs require individual attention and scope, the company also assigns individual
responsibilities and job tasks. However, all employees at Havells India Enters Personal Grooming
Space are expected to be team players who can work well with and through other members, and
who get along well with other people. The teams at Havells India Enters Personal Grooming Space
are supportive of all embers and work in synch with synergy towards achieving the broader team
objectives and goals under the Havells India Enters Personal Grooming Space designed strategy
and values.
1.2.4. Centralization vs. decentralization
Havells India Enters Personal Grooming Space has a hybrid structure between centralization and
decentralization. Like many progressive organizations, Havells India Enters Personal Grooming
Space largely supports decentralized decision making. Job roles at Havells India Enters Personal
Grooming Space are designed to be carried out with responsibility, and employees often set their
goals with mutual coordination and understanding with the supervisors.
However, Havells India Enters Personal Grooming Space is also centralized in making sure that
supervisors oversee, and approve of the various efforts, and tactics that employees choose to ensure
that they are aligned with the organizational strategy ad values.
1.2.5. Communication
Havells India Enters Personal Grooming Space has a developed and intricate system for ensuring
communication between employees, and different managerial levels. The communication systems
at Havells India Enters Personal Grooming Space enhance the overall organizational structure. The
1.2.2. Inter-Departmental coordination
Havells India Enters Personal Grooming Space has high coordination between different
departments. The company‟s departments often form inter-department teams for projects and tasks
that require multiple expertise. All coordination between different departments is effective and
organized. Havells India Enters Personal Grooming Space has a systematic process for initiating
and monitoring coordination between departments to ensure smooth work operations and processes
– and goal attainment.
1.2.3. Internal team dynamics [department specific]
Havells India Enters Personal Grooming Space encourages teamwork and team-oriented tasks.
Where jobs require individual attention and scope, the company also assigns individual
responsibilities and job tasks. However, all employees at Havells India Enters Personal Grooming
Space are expected to be team players who can work well with and through other members, and
who get along well with other people. The teams at Havells India Enters Personal Grooming Space
are supportive of all embers and work in synch with synergy towards achieving the broader team
objectives and goals under the Havells India Enters Personal Grooming Space designed strategy
and values.
1.2.4. Centralization vs. decentralization
Havells India Enters Personal Grooming Space has a hybrid structure between centralization and
decentralization. Like many progressive organizations, Havells India Enters Personal Grooming
Space largely supports decentralized decision making. Job roles at Havells India Enters Personal
Grooming Space are designed to be carried out with responsibility, and employees often set their
goals with mutual coordination and understanding with the supervisors.
However, Havells India Enters Personal Grooming Space is also centralized in making sure that
supervisors oversee, and approve of the various efforts, and tactics that employees choose to ensure
that they are aligned with the organizational strategy ad values.
1.2.5. Communication
Havells India Enters Personal Grooming Space has a developed and intricate system for ensuring
communication between employees, and different managerial levels. The communication systems
at Havells India Enters Personal Grooming Space enhance the overall organizational structure. The
33
systematic, defined, and organized communication allows an easy flow of information and ensures
that no organizational tasks and goals are compromised because of a lack of communication, or
misunderstandings.
1.3. Systems
1.3.1. Organizational systems in place
Havells India Enters Personal Grooming Space has defined and well-demarcated systems in place
to ensure that the business operations are managed effectively and that there are no conflicts or
disputes. The systems at Havells India Enters Personal Grooming Space are largely departmental in
nature, and include, for example:
- Human resource management
- Finance
- Marketing
- Operations
- Sales
- Supply chain management
- Public Relation Management
- Strategic leadership
1.3.2. Defined controls for systems
Each of the defined and demarcated systems at Havells India Enters Personal Grooming Space has
especially designed tools and methods as controls for evaluating performance and goal attainment.
These controls and measures are designed specifically in different departments based on the nature
of their tasks and responsibilities. Moreover, each department also designs specific controls for
members for performance evaluation, as well as for inter-departmental tasks and responsibilities.
1.3.3. Monitoring and evaluating controls
Havells India Enters Personal Grooming Space continually evaluates its systems through the
designed controls. This monitoring of the performance is continual and ongoing. This is largely
done through observation and informal discussions. Feedback to employees and overall department
systematic, defined, and organized communication allows an easy flow of information and ensures
that no organizational tasks and goals are compromised because of a lack of communication, or
misunderstandings.
1.3. Systems
1.3.1. Organizational systems in place
Havells India Enters Personal Grooming Space has defined and well-demarcated systems in place
to ensure that the business operations are managed effectively and that there are no conflicts or
disputes. The systems at Havells India Enters Personal Grooming Space are largely departmental in
nature, and include, for example:
- Human resource management
- Finance
- Marketing
- Operations
- Sales
- Supply chain management
- Public Relation Management
- Strategic leadership
1.3.2. Defined controls for systems
Each of the defined and demarcated systems at Havells India Enters Personal Grooming Space has
especially designed tools and methods as controls for evaluating performance and goal attainment.
These controls and measures are designed specifically in different departments based on the nature
of their tasks and responsibilities. Moreover, each department also designs specific controls for
members for performance evaluation, as well as for inter-departmental tasks and responsibilities.
1.3.3. Monitoring and evaluating controls
Havells India Enters Personal Grooming Space continually evaluates its systems through the
designed controls. This monitoring of the performance is continual and ongoing. This is largely
done through observation and informal discussions. Feedback to employees and overall department
34
heads is informally given regularly as and when is required. Formal evaluation of performance is
also conducted semiannually – or quarterly, depending on the need and the urgency of the projects
and assigned tasks. This is a formal process that is undertaken by supervisors and managers to
ensure the identification of performance lags, and suggestive means of improvement.
1.3.4. Internal processes for organizational alignment
Havells India Enters Personal Grooming Space also has special processes and methods for
ensuring that all departments and systems within the organization are aligned and working in
harmony towards the greater business goals and targets. This is made possible through ensuring that
all systems are designing and working towards goals and targets specific to their expertise under the
broader business vision and strategy. Moreover, the strategic leadership at Havells India Enters
Personal Grooming Space also ensures that all systems are allocated with resources, and set specific
targets to achieve similar business goals in any specific period.
2. Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the organizational
culture. As such, the management does not have direct influence or control over them. These
elements are also harder to describe and directly identify – but are equally important for an
organization‟s success and improved performance.
2.1. Shared values
2.1.1. Core values
The core values at Havells India Enters Personal Grooming Space are defined and communicated to
foster a creative and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. The core values at Havells
India Enters Personal Grooming Space include, but are not limited to:
- Creativity
- Honesty
- Transparency
- Accountability
heads is informally given regularly as and when is required. Formal evaluation of performance is
also conducted semiannually – or quarterly, depending on the need and the urgency of the projects
and assigned tasks. This is a formal process that is undertaken by supervisors and managers to
ensure the identification of performance lags, and suggestive means of improvement.
1.3.4. Internal processes for organizational alignment
Havells India Enters Personal Grooming Space also has special processes and methods for
ensuring that all departments and systems within the organization are aligned and working in
harmony towards the greater business goals and targets. This is made possible through ensuring that
all systems are designing and working towards goals and targets specific to their expertise under the
broader business vision and strategy. Moreover, the strategic leadership at Havells India Enters
Personal Grooming Space also ensures that all systems are allocated with resources, and set specific
targets to achieve similar business goals in any specific period.
2. Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the organizational
culture. As such, the management does not have direct influence or control over them. These
elements are also harder to describe and directly identify – but are equally important for an
organization‟s success and improved performance.
2.1. Shared values
2.1.1. Core values
The core values at Havells India Enters Personal Grooming Space are defined and communicated to
foster a creative and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. The core values at Havells
India Enters Personal Grooming Space include, but are not limited to:
- Creativity
- Honesty
- Transparency
- Accountability
35
- Trust
- Quality
- Heritage
The Havells India Enters Personal Grooming Space business also ensures that all its activities and
operations are conducted with high ethical and moral standards that redefined and benchmarked
against international criteria.
2.1.2. Corporate culture
Havells India Enters Personal Grooming Space encourages an inclusive culture that celebrates
diversity. The company has an international presence, and production units that are spread across
different countries, as such, Havells India Enters Personal Grooming Space ensure that its
organizational culture is supportive of diversity, and has internal policies to reduce incidences of
discrimination.
The corporate culture at Havells India Enters Personal Grooming Space also encourages innovation
and creativity by allowing independence for growth to individuals and teams –thus helping them
refine their careers as well as personalities. Lastly, the corporate culture at Havells India Enters
Personal Grooming Space also has a supportive leadership which works towards increasing
employee motivation and job satisfaction by giving way to visibility and accessibility.
2.1.3. Task alignment with values
Havells India Enters Personal Grooming Space ensures that all its job tasks and roles are aligned
with the core values that the company propagates. This means that all activities, tactics, and
strategic tactics employed by Havells India Enters Personal Grooming Space will reflect its core
values, and will not deviate away from these. This is to ensure a consistent, and reliable brand
image, as well as an honest organizational culture. In the event of organizational change, the
company will continue to ensure that all change management processes and methods incorporate
the core values so that the organizational culture is consistently maintained, and systematically
changed if need be.
- Trust
- Quality
- Heritage
The Havells India Enters Personal Grooming Space business also ensures that all its activities and
operations are conducted with high ethical and moral standards that redefined and benchmarked
against international criteria.
2.1.2. Corporate culture
Havells India Enters Personal Grooming Space encourages an inclusive culture that celebrates
diversity. The company has an international presence, and production units that are spread across
different countries, as such, Havells India Enters Personal Grooming Space ensure that its
organizational culture is supportive of diversity, and has internal policies to reduce incidences of
discrimination.
The corporate culture at Havells India Enters Personal Grooming Space also encourages innovation
and creativity by allowing independence for growth to individuals and teams –thus helping them
refine their careers as well as personalities. Lastly, the corporate culture at Havells India Enters
Personal Grooming Space also has a supportive leadership which works towards increasing
employee motivation and job satisfaction by giving way to visibility and accessibility.
2.1.3. Task alignment with values
Havells India Enters Personal Grooming Space ensures that all its job tasks and roles are aligned
with the core values that the company propagates. This means that all activities, tactics, and
strategic tactics employed by Havells India Enters Personal Grooming Space will reflect its core
values, and will not deviate away from these. This is to ensure a consistent, and reliable brand
image, as well as an honest organizational culture. In the event of organizational change, the
company will continue to ensure that all change management processes and methods incorporate
the core values so that the organizational culture is consistently maintained, and systematically
changed if need be.
36
2.2. Style
2.2.1. Management/leadership style
Havells India Enters Personal Grooming Space has a participative leadership style. Through a
participative leadership style, Havells India Enters Personal Grooming Space is able to engage and
involve its employees in decision-making processes and managerial decisions. This also allows the
leadership to regularly interact with the employees and different managerial groups to identify any
potential conflicts for resolution, as well as for feedback regarding strategic tactics and operations.
Through its participative leadership, Havells India Enters Personal Grooming Space is able to
enhance employee motivation, and increase organizational commitment and ownership amongst
employees as well as other stakeholders.
2.2.2. Effectiveness of leadership style
The participative leadership style is highly effective in achieving the business goals and vision of
the organization. Employees feel to be active members of the organization who are valued for their
suggestions, feedback, and input. Moreover, through participative leadership, leaders and managers
are able to identify current and potential conflicts within the Havells India Enters Personal
Grooming Space organization, and actively work to resolve them as soon as possible.
2.2.3. Cooperation vs competition – internally
With its supportive and encouraging organizational culture, Havells India Enters Personal
Grooming Space gives way to internal collaboration and cooperation between employees, systems,
teams, and departments. This cooperation and collaboration at Havells India Enters Personal
Grooming Space is important since its operations are spread globally, and also because tasks and
responsibilities within the company often require inter-departmental feedback and input. Moreover,
with increased expansion, and synergy, the business also regularly forms project teams – which
function effectively because of the cooperative and collaborative culture within the Havells India
Enters Personal Grooming Space organization.
2.2.4. Team vs groups
Havells India Enters Personal Grooming Space has effective and functional teams and works with
them internally to achieve its various business goals and objectives, and complete tasks. The
company‟s management is encouraging and supportive, and the leadership provides a motivating
and pragmatic vision toad achieve. The human resource management system, as well as the
2.2. Style
2.2.1. Management/leadership style
Havells India Enters Personal Grooming Space has a participative leadership style. Through a
participative leadership style, Havells India Enters Personal Grooming Space is able to engage and
involve its employees in decision-making processes and managerial decisions. This also allows the
leadership to regularly interact with the employees and different managerial groups to identify any
potential conflicts for resolution, as well as for feedback regarding strategic tactics and operations.
Through its participative leadership, Havells India Enters Personal Grooming Space is able to
enhance employee motivation, and increase organizational commitment and ownership amongst
employees as well as other stakeholders.
2.2.2. Effectiveness of leadership style
The participative leadership style is highly effective in achieving the business goals and vision of
the organization. Employees feel to be active members of the organization who are valued for their
suggestions, feedback, and input. Moreover, through participative leadership, leaders and managers
are able to identify current and potential conflicts within the Havells India Enters Personal
Grooming Space organization, and actively work to resolve them as soon as possible.
2.2.3. Cooperation vs competition – internally
With its supportive and encouraging organizational culture, Havells India Enters Personal
Grooming Space gives way to internal collaboration and cooperation between employees, systems,
teams, and departments. This cooperation and collaboration at Havells India Enters Personal
Grooming Space is important since its operations are spread globally, and also because tasks and
responsibilities within the company often require inter-departmental feedback and input. Moreover,
with increased expansion, and synergy, the business also regularly forms project teams – which
function effectively because of the cooperative and collaborative culture within the Havells India
Enters Personal Grooming Space organization.
2.2.4. Team vs groups
Havells India Enters Personal Grooming Space has effective and functional teams and works with
them internally to achieve its various business goals and objectives, and complete tasks. The
company‟s management is encouraging and supportive, and the leadership provides a motivating
and pragmatic vision toad achieve. The human resource management system, as well as the
37
organizational training, supports all employees in their growth fairly and transparently. This leads
to effective team formation instead of nominal groups within the organization for various projects,
as well as department-specific tasks and roles.
2.3. Staff
2.3.1. Employee skill level vs business goals
Havells India Enters Personal Grooming Space has a sufficient number of employees employed
across its global operations. Employees for different job roles and positions are hired internally as
well as externally – depending on the urgency and the skill levels required. Based on this, it is seen
that Havells India Enters Personal Grooming Space has employees who are skilled as per the
requirements of their job roles and positions. All employees are given in house training to
familiarize themselves with the company and its values. External training along with in-house
training is provided for skill level enhancement.
All job roles and positions are designed to facilitate the achievement of business goals, and as such,
employee skill level at Havells India Enters Personal Grooming Space is sufficient to achieve the
business goals of the company.
2.3.2. Number of employees
Havells India Enters Personal Grooming Space has employed a large number of employees. The
number of employees varies from country to country as per the requirements and needs of the
business and operations. The global team of Havells India Enters Personal Grooming Space is an
inclusive one that accepts, and encourages diversity, and works in synchronization with members to
ensure attainment of business goals. The team member sand employees are the most important part
of business success for Havells India Enters Personal Grooming Space.
2.3.3. Gaps in required capabilities and capacities
Havells India Enters Personal Grooming Space has a well-defined system for identifying potential
needs of capabilities and capacities for the organization. The human resource function of the
business has a systematic process that aligns all other departments to identify potential vacancies or
skill gaps. Based on the nature of the need, the human resource department arranges for
recruitments which may be permanent or contractual in nature, as well as arranges training sessions
if need be for the current workforce.
organizational training, supports all employees in their growth fairly and transparently. This leads
to effective team formation instead of nominal groups within the organization for various projects,
as well as department-specific tasks and roles.
2.3. Staff
2.3.1. Employee skill level vs business goals
Havells India Enters Personal Grooming Space has a sufficient number of employees employed
across its global operations. Employees for different job roles and positions are hired internally as
well as externally – depending on the urgency and the skill levels required. Based on this, it is seen
that Havells India Enters Personal Grooming Space has employees who are skilled as per the
requirements of their job roles and positions. All employees are given in house training to
familiarize themselves with the company and its values. External training along with in-house
training is provided for skill level enhancement.
All job roles and positions are designed to facilitate the achievement of business goals, and as such,
employee skill level at Havells India Enters Personal Grooming Space is sufficient to achieve the
business goals of the company.
2.3.2. Number of employees
Havells India Enters Personal Grooming Space has employed a large number of employees. The
number of employees varies from country to country as per the requirements and needs of the
business and operations. The global team of Havells India Enters Personal Grooming Space is an
inclusive one that accepts, and encourages diversity, and works in synchronization with members to
ensure attainment of business goals. The team member sand employees are the most important part
of business success for Havells India Enters Personal Grooming Space.
2.3.3. Gaps in required capabilities and capacities
Havells India Enters Personal Grooming Space has a well-defined system for identifying potential
needs of capabilities and capacities for the organization. The human resource function of the
business has a systematic process that aligns all other departments to identify potential vacancies or
skill gaps. Based on the nature of the need, the human resource department arranges for
recruitments which may be permanent or contractual in nature, as well as arranges training sessions
if need be for the current workforce.
38
2.4. Skills
2.4.1. Employee skills
Havells India Enters Personal Grooming Space has a commendable workforce, with high skills and
capacities. All employees are recruited based on their merit and qualifications. Havells India Enters
Personal Grooming Space prides itself on hiring the best professionals and grooming them further
to facilitate growth and development.
2.4.2. Employee skills vs task requirements
Havells India Enters Personal Grooming Space has defined tasks and job roles and hires and trains
employees for skill levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform their respective jobs
in accordance with the values and culture as well as the business goals and strategy of Havells India
Enters Personal Grooming Space.
2.4.3. Skill management
Havells India Enters Personal Grooming Space pays particular attention to enhancing the skills and
capacities of its employees. It arranges regular training and workshops – internally as well as
externally managed- to provide growth and development opportunities for its employees. Havells
India Enters Personal Grooming Space focuses on personal as well as professional growth for its
employees and works accordingly with them.
2.4.4. Company’s competitive advantage
The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for job roles and requirements at Havells India Enters
Personal Grooming Space and provide a competitive benefit to the company – where players cannot
imitate employee skills or training. This creates a unique and non-substitutable competency for
Havells India Enters Personal Grooming Space.
2.4. Skills
2.4.1. Employee skills
Havells India Enters Personal Grooming Space has a commendable workforce, with high skills and
capacities. All employees are recruited based on their merit and qualifications. Havells India Enters
Personal Grooming Space prides itself on hiring the best professionals and grooming them further
to facilitate growth and development.
2.4.2. Employee skills vs task requirements
Havells India Enters Personal Grooming Space has defined tasks and job roles and hires and trains
employees for skill levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform their respective jobs
in accordance with the values and culture as well as the business goals and strategy of Havells India
Enters Personal Grooming Space.
2.4.3. Skill management
Havells India Enters Personal Grooming Space pays particular attention to enhancing the skills and
capacities of its employees. It arranges regular training and workshops – internally as well as
externally managed- to provide growth and development opportunities for its employees. Havells
India Enters Personal Grooming Space focuses on personal as well as professional growth for its
employees and works accordingly with them.
2.4.4. Company’s competitive advantage
The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for job roles and requirements at Havells India Enters
Personal Grooming Space and provide a competitive benefit to the company – where players cannot
imitate employee skills or training. This creates a unique and non-substitutable competency for
Havells India Enters Personal Grooming Space.
39
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