BREIF HISTORY OF V GUARD

The origin of V Guard dates back in 1977, by Mr. Kochouseph Chittilappilly. With a
burning passion to alter the streams of mediocrity, decided to launch a robust branch in
the Indian electric and electronic goods panorama. Chairman and Founder Kochouseph
Chittilappily was born in 1905 in Thrissur District, Kerala. He was brought up in family
that was traditionally engaged in agriculture. He started a small manufacturing unit for
voltage stabilizers, with a small capital of Rs. 100,000 borrowed from his father and two
workers to assist him.

Through the passage of time, V Guard finally gained recognition in the Indian market
and became a name synonymous with voltage stabilizers across South India. The
company later extended their range of products to Digital UPS, Inverter and Inverter
Batteries, Electric Water Heaters, Solar Water Heaters, Domestic Pumps, Agricultural
Pumps, Industrial Motors, Domestic Switch Gears, Distribution Boards, Wiring Cables,
Industrial Cables, Induction Cooktops, Mixer Grinders, Fans, Rice Cooker, Gas Stoves &
Solar Power Systems.

In the year, 1985 Mr. Kochouseph Chittilappilly started another proprietorship concern
by the name M/s Prompt India for marketing the products under the brand name of V
Guard. Over time M/s Prompt India changed its name to M/s V Guard Industries. On
February 12, 1996 the company took on the title of V Guard Industries Limited, and
opened its registered office at Cochin. On November 15, 2001 the company was
converted into a private limited company and then again into public limited company.

On August 1, 2007 the company received a fresh certificate of incorporation in the name
of "V-Guard Industries Limited"

The company has now extended its distributions all around country with a more
distinguished array of products. V Guard is now armed with a huge network of
distributors, retailers, direct dealers and service centres in every nook and corner of the
country.
 CURRENT BOARD OF DIRECTORS

Board Of Directors Name and Designation

1. Mr. Cherian N Punnoose, Chairman
2. Mr. Kochouseph Chittilappilly, Chairman Emeritus
3. Mr.V Ramachandran, Director & COO
4. Prof.Biju Varkkey, Independent Director
5. Mr.Ullas K Kamath, Independent Director
6. Ms.Radha Unni, Independent Director
7. Mr.George Muthoot Jacob, Independent Director
8. Mr.C J George, Independent Director
9. Mr.Mithun K Chittilappilly, Managing Director
10. Mr.B Jayaraj, Non Exe.Non Ind.Director
 MISSION AND VISION STATEMENT

MISSION:

“In our quest for excellence, your experiences inspire us to do better. While innovation
is the new constant, your evolving needs challenge us to evolve. Hence, we bring to you
a range of thoughtful products that are centered not only on enriching your life but, also
on delivering to you and your family. At V Guard, we aim to deliver smart solutions with
a sole purpose- empowering you to bring home a better tomorrow

VISSION:

“Be India’s Leading Brand, Driving Market Leadership with Thoughtful Products and
Experiences to Enrich Consumer Lives and Enhance Stakeholder Value.”

QUALITY POLICY:

V Guard has a holistic approach to quality and care is taken while selecting the raw
materials for the production process. The resources for manufacturing are sourced from
well reputed dealers. They are checked for their quality and items that are not up to the
basic standards are rejected. Various checkpoints are present along the production line
to ensure the same. Post production inspection and certification ensure that the
products conform to internationally accepted quality and performance benchmarks.

QUALITY CERTIFICATION:

 MNRE – CRISIL
The solar water heater division was awarded the prestigious MNRE – CRISIL
rating which indicates high performance capability and moderate financial
strength of the company to undertake off grid projects in solar thermal
technology.
 BIS Certification
The PVC cable factory and Pumps and motor factory at Coimbatore bears the BIS
certification for quality of the cables and pumps produced respectively.
 ISO 14001:2007
V Guard factories at Coimbatore and Kashipur bear ISO certification for
conforming to the highest international standards of environment management
systems.
 ISO 9001:2008
The V Guard R&D division at Cochin was awarded the ISO 9001:2008 for
excellence in quality management systems in Design and Development of
electronic equipment.
 OHSAS 18001:2007
Concern for employee safety has led to OHSAS certification in Coimbatore and
Kashipur factories.
 PRODUCT PROFILE

PRODUCTS:

1.Voltage stabilizer

V- Guard stabilizer offer the best technology with features like automatic restart, turn-
on

delay, time-delay system and high-low voltage cut-off that provide efficient and reliable

protection for electronic appliances against voltage problems.

V-Guard stabilizers are unmatched in every sense. It’s “jelly bean “design is registered to

prevent cheap imitations. V-Guard stabilizers come in different capacities for different

applications like Air conditioner, LCD TV, Music system, Refrigerator, washing machine,

microwave oven and treadmill.

2.Wiring Cables

V-Guard cables are manufactured in a fully-automated ISO 9001 certified factory at

Coimbatore and Kashipur. ISI marked V-guard cables come with HFT Technology. 3-
layer

Insulation and length assurance seal in every 90meter. Multi-core flat, Round, LT Power

Cables and Control Cables are also available. All cables are available in FR and FRLS
variants

3.Power and Control Cables

V-Guard cables are manufactured in a fully-automated ISO 9001 certified factory at

Coimbatore and comply with world -class standards. All cables designs conform to IS:

7098(Part1) for XLPE and IS:1554 (Part1) for PVC Insulated Cables for working
voltages

Up to including 1.1 KV. These high-quality cables ensure protection against electrical

Hazards. V-Guard LT Power & control Cables come in armoured and unarmoured
variants .

4.Pumps

Ultra efficient V-Guard Pumps with high -speed pumping technology can pump even
from

the deepest of wells quickly. V-guard pumps are made from top-grade casting, fine

components and high-quality aluminum. With a wide application range, these pumps

are available in more than 400 models ranging from 0.25 to 25 HP (Including 3-Phase
models)

for domestic, agriculture and commercial purposes.

5.Geysers/Water Heaters

V-Guard offers a wide range of instant and storage model water heaters. The latest
Energy saving Technology with 5-star rating saves up to 50% energy and the Penta
protection system Assures maximum user safety.

The outer body is made of high-quality ABS and powder coated

metal.1,6,10,15,25,35,50,80,100-liter capacity water heaters are available in different
models Like Electric water heater, Gas water heater and immersion water heater, to suit
bathrooms and kitchens.

6. Solar Water Heaters

V-Guards solar water heaters with international ETC (Evacuated Tube Collector)
technology are way ahead of the competition, in terms of quality, technology. Approved
by Ministry of New and Renewable Energy-Guard solar heaters are completely eco-
friendly and non polluting.

They are available in 100,125,150,200,300,500,1000,2000,3000,4000 and 5000 LPD

capacities. Manufacturing takes place at ISO Certified factory in Coimbatore

7.Fans

V-Guard Fans with unique ‘High-Angled Technology’ and specially designed blades that
facilitate full coverage of cool breeze in the entire room. The sleek metal painted body
and stylish design, add a touch of class to the interiors. Fans are available in different
models and colors.

8.UPS (Line Interactive and Inline UPS)

V-Guards UPS series from 600VA to 60 KVA to match the wide range of customer
requirements from different verticals. Some of its features are:

 Microcontroller/DSP controller-based technology

 Line interactive and online UPS technology.
 Capability to handle various types of loads.
 Active power factor compensation design.
 Off mode battery charging with HVP protection.
 Over voltage protection module.
 Generator/Inverter compatibility.

9. Digital UPS, Inverters, Batteries and Trolley

V-Guard digital UPS is equipped with advanced Micro-controller-based line

interactive Technology and a host of features like MOSFET based Power Stage with
PWM output, FRCM with UST (Uni Polar Switching Technology) for uninterrupted
back-up during power failure.
 LEVELS OF OPERATIONS

V Guard has been an established player in the stabilizer business for more than 30 years
with a market share of < 50% in south India. The company has a network of 16
branches, 7000 retailers, 177 distributors and 235 service centers spread across 12
states in India.

V Guard ventured into Maharashtra, Haryana, Madhya Pradesh, Odisha, Himachal

Pradesh, Chhattisgarh, Uttar Pradesh and Gujarat in FY 10, with an eye to develop a pan
India presence.

The company’s northern market has contributed to 15% to total revenues, while the
southern region contributed 85%

CUSTOMERS OF THE ORGANIZATION:

The main targeted customers for V Guard products are:

 Industries
 Gated communities
 International Industries with base in North India
 Rural areas- SEC classification
 COMPETITORS

Havells

Havells India limited is an Indian electrical equipment company based in Noida. Havells
India owns some brands like Havells, Lloyal, Crabtree, standard electric, reo, and
promptech. The company has 23 branches and representive officer with over 6000
workers in over 50 countries.

Polycab

The company manufacture and sell a diverse range of wires and cables and its key
product in the wires and cables segment are product cables, control cables,
instrumentation cables, solar cables, building wires, etc. Its product is over 40 countries.

Bajaj electrical

Bajaj electrical limited, a globally renowned and trusted renowned company with a
turnover of ₹4,987 crores is part of bajaj group. Bajaj electrical is spread across
consumer product like (Appliance, fans, lighting,)etc. It has 19 branch offices spread in
different parts of the country with a chain of about 1000 distributors, 4000authorized
dealers, over 400,000retail outlets and over 282 customer care center

Braun

Braun is German consumer products company founded in 1921 and based in Kornberg
in Taunus. The company is particularly well known for its industrial product design
from 20th century which include electric shavers and record players. It is founded by
Max Braun. Its product are electric razors, hair care appliance, electric toothbrushes.

Finolex

Finolex Cables ltd is an indian manufacturer of electrical and telecommunication cables

based in Pune, Maharashtra. It is the flagship company of the Finolex Group, established
in 1958.The company also manufactures polyvinyl chloride (PVC) sheets for roofing,
signage and interiors. Its manufacturing facilities are located at pimpri and Urse in pune
as well as at goa and uttarakhand. Its products are electric & communication, cables,
CFL, and electric switches.
 MAJOR COMPETITORS (PRODUCT WISE)

PRODUCT COMPETITORS

Stabilizer Vigil, premier, V-Care, Shalimar, Everest,

safeguard, Keeline, bluebird, premier,
Logicstat
Cable Finolex, Polycab, Anchor, Havellsetc.

Pump Crompton creaves, kirloskar, Texmo,

etc
Electric water Racold, Bajaj, Venus etc.

Solar Water Heaters Tata BP, Bajaj, Rancold

Electric Fan Crompton Greaves, Havells

UPS APC, Numeric, Emerson

 STRATEGIES

BUSINESS STRATEGY:
Earlier till 2012 the company had concentrated only in southern states, but due to rising
penetration and enhanced opportunities in terms of revenue aspects, company had an
aggressive restructuring of the strategies for separate product lines, expanding channel
network, opening new branches in the northern states, investment in talent and
providing outstanding customer care services across their markets, currently more
than 33 per cent of the company’s revenue now flows in from V guard non south
markets.
The revamp process has led the V Guard industry in shaping up the portfolio segments
like inverters, stabilizers and even in water heaters.

The other restructuring methods taken up are:

-Maximize revenue through a positive expansion and increase in efficiency.
- Reduction in cost of borrowing
-Enhancing production efficiency and minimizing process losses
-Reduce operation costs and be cost competitive
-Have a consumer centric approach
-Delivery for money to the clients

PRICING STRATEGY:
Since the company has a wide array of products. 16 in number, each of the product’s
pricing strategy is unique. Some of the factors that affect the pricing include the cost of
raw materials, location of the market segment as well as supply and demand.
V-Guard prices its products based on the quality or rather value. The effort put in the
production of its products is quite much.
The pricing strategy was supposedly very different in the urban and rural areas:
Rural Areas:
The pricing strategy in rural areas focuses on wholesale profit and lesser margin in
sales.
 Provide a commission for sales representatives on sale to consumers.
  Sell UPS and stabilizers for a lower margin to the consumers and retailers
 Offer UPS to the distributors stores for a low margin, making them brand loyal
 Tie ups with retailers to sell fridges, ACs and other electronic goods along with
voltage stabilizers.
Urban Areas:
The pricing strategy in urban areas can focus on brand status and higher margin to
compensate for the sales in the rural areas. The household appliances are promoted
through aggressive campaigns focusing on the trust and safety of the brand.

MANAGEMENT STRATEGY:

The company are under constant review. The Board of Directors performs the pivotal
role in the governance system and constantly reviews the existing practices adopted
and strive to improve them in the best interest of all the stakeholders. The decision-
making process at the company is transparent and documentary evidence is available
for each and every transaction of the company. The board has also formed various sub
committees and defined guidelines and formulated framework for the meetings of the
sub committees. The members of these sub committee discuss and deliberate the
matters and proposals which are coming within the terms of reference and provide its
recommendation to the board to take accurate decisions. The board also ensures that
accurate and timely financial and strategic information are given to the present and
potential investors.
 CORPORATE SOCIAL RESPONSIBILITY

They believe in the amalgamation of corporate management, sustainable development

and global responsibility in working toward a better society and thereby a better world.
They are committed to greening our environment, supporting the less fortunate and
nurturing the downtrodden.

ROTARY-BINANI ZINC CSR AWARD

V Guard industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private
sector) by the Rotary Club of Cochin Metropolis, in association with NIPM Kerala
Chapter and ICA, Ernakulam Branch for Best Corporate Social Responsibility Initiative
by a company in the state of Kerala

THE THOMAS CHITTILAPILLY TRUST

The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, in memory of

his late father, C.O. Thomas. It is an extension of the philanthropic and responsible
values espoused at V-Guard. It is dedicated to extending its reach to areas of health,
education and care.

The trust provides health insurance cover for 1314 families from financially backward
classes, 922 families at TholurPanchayath, Kerala and 105 families in Ramanagaram
Taluk in Bangalore, Karnataka

It also conducts free health camps at villages and backward areas where the reach of
proper health care is absent. It sponsors the education of 1587 school children from
economically backward section in Thrissur and Ernakulam District in Kerala and
RamanagramamTaluk, Bangalore.

The trust has also made substantial contributions to NGO’s working for various social
welfare causes like Udhavamkarangal and SOS village. It has also donated generously to
many national level causes and relief funds like Prime Minister’s Relief Fund. Kargil war
victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa
cyclone and the Tsunami.

SHANTHIMANDIRAM

An old age home for women, providing shelter and care for those who are unable to care
of themselves in Parappur Village, Trissur Kerala. It is managed by the sister of CMC
Nirmala Province in whole able hands the inmates receive love and care irrespective of
cast and community. The facility accommodates 60 inmates at a time and is recognized
by the Board of Control for Orphanages and other Charitable Homes, Kerala.

SOCIAL WELFARE FUND

An employee CSR activity social welfare consciousness being embedded in V-Guard

work culture has motivated the employees to join hands in reacting out in charity. Social
Welfare Fund was created out of the goodwill of the employees who collate funds and
donate towards cost of medicines for the poor in the cancer ward at the Ernakulam
General Hospital.
 EXPORT/IMPORT

The company had inaugurated an integrated solar water heater manufacturing unit at
Perundurai, near Erode. The plant, which has come up at an investment of Rs. 18 crores, has an
installed production capacity of 90,000 units a year.

It started production in 2013 and is making about 2,000 units a month. V-Guard manufactures
stainless steel and polymer tanks and assembles the heaters at Perundurai. It imports the solar
tubes for the heaters.

Since the capacity of the plant is huge, it can look at the export market, apart from the domestic
opportunities. The company started exporting from early 2014. The market size for solar water
heaters in the country is estimated at around Rs. 600 crores, and it is growing at 15 to 20
percent annually.

They also plan to export solar water heaters and is exploring opportunities in the SAARC (South
Asian Association for Regional Co-operation) countries.

The raw materials are all sourced locally, hence they are not importing good for the
manufacturing process.
 COLLABORATIONS AND EXPANSION PLANS

The pandemic has been driving online sales of water heaters and kitchen appliances.
The company has also witnessed a 40 per cent rise in the revenues through these
channels during Q2 FY21. However, E-commerce business is minuscule when it comes
to absolute numbers.

With the economic rebounding, V Guard is planning to go ahead with its expansion
plans. More prominent in southern markets, the firm is now looking forward to
spreading its presence in the northern region. V Guard have set up another
manufacturing plant in Sikkim for water heaters.

Lately, the board has approved the acquisition of a minority stake (18.77%) in
Gegadyne Energy Labs Private Limited (GEL) for cash consideration of Rs. 33.4 crores.

GEL is a Mumbai based alternate battery technology start-up developing innovative

energy storage (battery) solutions, which could deliver better battery performance on
key parameters such as total cost of ownership (TCO), Life Cycle, Recharge time, Safety
profile and Maintenance costs, compared to prevalent battery technologies. In addition,
all key raw materials can be sourced locally, thereby providing distinctive advantage
against some of the upcoming battery technologies based on rare metals with significant
import dependence.

V-Guard envisages start-up collaboration as one of the routes to participate in emerging

technologies and building product capabilities for fuelling future growth. GEL
investment is a stepping-stone in this direction and signifies V-Guard’s willingness to
move to cutting edge technology space and its growing focus on creating disruptions in
established businesses. The company foresees potential in GEL’s alternative battery
technology for various primary applications such as DUPS/Energy storage in addition to
secondary applications in other products of its existing portfolio.
ORGANIZATION CHART