HAVELLS

GROUP

10th February, 2020

The National Stock Exchange of India Limited BSE Limited

Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers
Plot No. C/1, G Block Dalal Street
Sandra Kurla Complex Mumbai- 400 001
Sandra (E)
Mumbai- 400 051 Scrip Code: 517354

NSE Symbol : HAVELLS

Sub: latlmatjan of Schedule of Analyst Meet

Dear Sir,

In terms of Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations , 2015 read with corresponding circulars and notifications issued thereunder,
it is hereby informed that the management of the Company, Havells India Limited, shall be participating
in the Investor Conferences , scheduled as follows:-

1. Name of the Organizer: IIFL Institutional Equities

Place: Mumbai
Date: 11 th February, 2020

2. Name of the Organizer: Edelweiss Securities Limited

Place: Mumbai
Date: 12th February, 2020

3. Name of the Organizer: Kotak Securities Limited

Place: Mumbai
Date: 17th February, 2020

Also enclosed is a copy of the Investor Presentation which would be used in the above conferences.

This is for your information and records.

Thanking you.

Yours faithfully,
for ells India Limited

{Sanja umar Gupta)

Company Secretary

Encl: as above
HAVELL.S lNDlA l.'.rD.
Corporate Office· QRG Towers, 2D, Sector 126, Expressway, l\loicla - 20130~-. U P (!i\lDIA)
Tel: +91-120-3331000, Fax: +91 -120-3332000
E-mail: m2rketing@havells com , www.havells.com
Registered Office. 904, 9th Floor, Surya Kira11 Builcli11g,
I<.G. Marg, Connaught Place, i\Jew Delhi - 110001 . (II\IDIA)
Consumer Care 1,10.:
moo 1031313, 1800 -i-i 0303 (All Connections), 0·11-4-155 0303 (Lanclline)
I Srabtree
1
Cll\l: L31900DL 1983PLCQ·; 6304
HAVELLS STANDARD GSTIN: 09AAACH035 i EI Z3
 "
HAVELLS

HAVELLS INDIA LIMITED

February 2020
 AN EVOLVING JOURNEY
Got listed on Stock Acquisition of ‘Lloyd’
Commenced Business Acquired global business
Exchange consumer durable
in Delhi of ‘Sylvania’
business

1958 1971 1993 2003 ) 2007 2015 2017 )

~.;;;;;;;;;;;;;;' ~.;;;;;;;;;;;;;;'

* Launched Fans &

* Divestment of ‘Sylvania’
Lighting
Acquired ‘Havells’ Brand * Focus on domestic
* Set up plants for
expansion
Switchgears, Fans & CFLs

- - - - - - - - - - - - - - - - - - - HAVELLS
 KEY MILESTONES
➢ Leverage channel by expanding product portfolio
✓ Industrial to a consumer company
➢ Manufacturing
✓ Large scale manufacturing with high standards of quality
assurance
✓ ~90% in-house
➢ National Advertising and uniform discounting
✓ Disproportionate ad spend on ’non-consumer’ products
➢ Mass to ‘mass premium’
✓ Steady premiumisation
➢ Acquisition of Sylvania and pragmatic exit
✓ Changing industry dynamics and capital allocation
➢ Lloyd Acquisition
✓ Entry into high potential Large Consumer Durables
✓ Aligned with ‘Deeper into Homes’
CONSISTENT DELIVERY
Financial performance Market capitalization

Revenue

EBIDTA

Net Worth

PBT

PAT
~30% ~38%
CAGR since CAGR since
listing listing
 GROWTH WITH RESPONSIBILTY
Havells Mid-Day Meals Program Sanitation DOW JONES SUSTAINABILITY INDEX-2019
Overall Ranking
Rank Company
1 Signify NV Ranked 6th
globally in the
2 Prysmian SpA Electrical
3 Schneider Electric SE Components &
Equipment
4 Osram Licht AG Industry
Serving 60,000+ students Built over 4,400 bio- 5 Legrand SA
daily toilets in 450+ schools 6 Havells India Limited

SUSTAINABILITY

Energy intensity 94% of waste GHG emission

reduced by 41% recycled / reused intensity reduced by
Tree plantation: 6.5 lacs tree
40% from FY16 to
planted covering ~260 hectares 10 of 13 manufacturing plants from FY16 to FY19
of area are zero water discharge FY19
BENCHMARKING WITH THE BEST CORPORATE AND SHAREHOLDERS
GOVERNANCE

➢ Committed to high standards of corporate governance, rated

CGR 2+ by CARE

➢ Well experienced and diversified professional Board

➢ Promoters- single business focus

➢ Transparent and detailed communication to shareholders

HAVELLS
 PRUDENT FINANCIAL MANAGEMENT

Capital allocation strategy:

Maintaining investment grade Balance Sheet:
➢ Investing in organic growth
➢ Lean balance sheet accommodating
➢ Open to value-creating acquisition with
brand and distribution focus growth and acquisition

➢ Return to shareholder
➢ Net cash positive
• Consistent dividend payout of ~43%
➢ Rated AAA for long-term facilities and A1+
• Returned Rs. 16 billion to shareholders in
last 5 years as dividend for short-term facilities by CARE
 MOVING AHEAD

2004 2011 Onwards

Lighting Air Conditioner

• 20 Product verticals
Television
• Serving ~70%
Air Cooler
electric sockets
Fans
Water Heater
Switchgears
Refrigerator

Switches Water Purifier

Domestic Appliances

Till 2004
Washing Machine
Domestic Cable
Industrial Cable

DEEPER INTO HOMES

 WIDEST CONSUMER OFFERING

Electricals
Industry size: ~ Rs. 45,000 cr.
CAGR (2019-25): ~12%

Home Appliances
Industry size: ~ Rs. 70,000 cr.
CAGR (2019-25): ~15%
 SEGMENTS
Revenue Mix (FY19)
Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd

17% 32% 13% 20% 18%

Contribution Margin Mix (FY19)

Switchgears Cables Lighting & Fixtures Electrical Consumer & Durables Lloyd

27% 22% 16% 22% 13%

 MARKET SHARE: TOP 3 ACROSS CATEGORIES
Indicative Market
Indicative Market Indicative Organized
Product Size Peers
Share Rank Penetration Level
(Rs. in crores)
Switchgears

MCB 2,900 ~18% # 1-2 High Legrand, Schneider

Switches* 4,500 ~12-13% #3 Medium Panasonic (Anchor), Legrand

Cable

Domestic 10,000 ~16% #3 Low Finolex, Polycab

Industrial 15,000 ~10-11% #3 Medium Polycab, KEI

Lighting
LED

Lighting & Fixtures 10,000 ~12-15% # 2-4 Medium Philips, Wipro, Crompton

Fans 7,500 ~19% #2 High Crompton, Usha, Orient

ECD

Water Heaters 1,700 ~19% #1 Medium Racold, AO Smith

Other Appliances 5,000 ~6% #3-4 Medium Philips, Bajaj

* Modular plate switches

RECENT TRENDS AND OUR RESPONSE

HAVELLS
EXTERNAL HEADWINDS INTERNAL INITIATIVES

➢ Economic activities remained soft ➢ Aggressive channel expansion

➢ Multi-year low GDP growth rate ➢ Cost rationalisation

➢ Persistent Liquidity issues faced by trade ➢ Venturing in semi-urban and rural

➢ Weakness in investment and markets

consumption sentiment ➢ Exploring export opportunities- new

➢ Sluggish activity in construction and markets and products

capital goods sector ➢ Continued investment in Research &

Development and production capacities
 KEY LEVERS

• Distribution

• Product extension and expansion

• Digitization

• Research & Development

HAVELLS
DISTRIBUTION: DEEPER PENETRATION
Proximity to Consumer
TOWN PENETRATION – 25K ABOVE POPULATION

~9,500
RETAILER - COUNT
~2300

Direct Dealers
~2 Lac
~2000
~150,000
~1150 Retailers
~1.5 Lac
Ambition
~250,000
Electricians

Ambition
Current

Current
 DISTRIBUTION: RURAL- UNTAPPED OPPORTUNITY
➢ Opportunity to tap demand created by improved electricity
penetration in semi-urban territories ₹
➢ Identified 2,800+ towns with population range of 10K-50K, covered
1,800 towns by now
➢ Catering through basic products like switches, MCBs, Lighting and
Wires
➢ Plan to expand product offering

Present portfolio for semi-urban / rural markets

 DISTRIBUTION: MULTI CHANNEL
➢ Grow inclusively :
✓ MBOs
✓ Brand stores
✓ Organized retail chains
✓ Canteen Stores
✓ Projects & Enterprise Business
✓ E-commerce

Largest Brand Shop channel in electrical industry

550 297 20%

Brand Shops District Presence Business Contribution

(Ex Cable)
CONSISTENT NEW PRODUCT INTRODUCTIONS
2012: Water Heaters 2013: Domestic Appliances and Pumps

2016: Air Coolers 2017: Water Purification and Personal Grooming

SERVED WITH REGULAR FRESH LAUNCHES

Stealth Underlight Ceiling Mixer Grinder Sonido I: Low

Fan: Silent and Dust Free noise with digital display Oil Filled Radiator

Aindrila: India’s
first pedestal
and wall fan
with square
guard and
embedded LED
Lighting
Digiplus Alkaline: 100% RO & UV Lloyd Grande’: Heavy-Duty AC
 DIGITIZATION: SALES PROCESS
➢ Mini ERP solution for dealers
Distribution
Management ➢ Helps real-time monitoring of payables, settlement of schemes,
System (DMS)
better inventory management, ensuring ‘Peace of Mind’ to
channel partners

➢ Mobile-based two-way communication platform

mKonnect:
➢ Enabling dealers and distributors to place orders from the ease
Dealer App
of their shops, this has ben effective in creating 80% of revenue
being booked through this portal

➢ Digital platform for retailers, 150K+ retailers registered with

Company
➢ Features includes instant redemption of points, DBT, real-time info
updates etc.
 DIGITIZATION: SALES PROCESS
➢ Mobile-app based electrician loyalty program, 80K+
registered electricians
➢ Incentivizing through direct bank transfer with access to
pricelist, transaction history and details of applicable
schemes

➢ In-house developed mobile application making sales force

Sales Force more informed and effective
Automation
(SFA) ➢ Facilitates geo-tagging of sales team and retailer
registration enabling 360-degree channel visibility
 RESEARCH AND DEVELOPMENT IOT Smart Homes

First Mover Trend Setter

Maturity

Develop solutions
(2015 onwards)

First Mover

Self development
from ground zero
Fast Follower (2000-2015) Trend Setter

JVs and alliances Time

(upto 1990s)
➢ Fast catcher to thought leadership
➢ R&D spend to increase from 1% to 3% of net revenue
➢ Intelligent hardware, embedded software
➢ Products to solution
LLOYD
A full stack consumer appliances play

HAVELLS
HIGH GROWTH POTENTIAL INDUSTRY
• Low Penetration
~65%

~33%

~12%
>5%

Colour Television Refrigerator Washing Machines Room Air Conditioner

• Each Product Group Expected To Grow At Double Digit

INR Cr

Washing Machines Refrigerator Room Air Conditioner Colour Television

10% 10% 15% 37,600 11% 45,800

15,900 33,600

9,500 18,900 24,500

16,300

2019 2025E 2019 2025E 2019 2025E 2019 2025E

% CAGR

Source: CEAMA and Frost and Sullivan

MASS PREMIUM POSITIONING
Air Conditioner Market in India

Key Players Other Players

Premium

Mass- Premium

Economy

Economy
LLOYD WELL PLACED IN CONSUMER DURABLES MARKET

FY19 Gross sales of Gained 10% share in AC Among top three AC

c.INR 2,000 Cr segment of India in players in the country
~ 7 years

Innovative and aggressive in 10,000+

Comprehensive product
brand building initiatives, Display points pan India
portfolio
created a strong connect

600+ 6 decades Presence across

Service centers pan of brand vintage in AC 450+ cities
India segment
 LLOYD: JOURNEY SO FAR
➢ Since Lloyd acquisition in 2017, there have been structural Lloyd AC Plant
improvements in business amidst significant industry disruptions

➢ The industry turned fiercely competitive, led by price erosion by

leading players in the market

➢ Lloyd, in midst of transition, was adversely impacted by increase in

costs - higher import duty, adverse forex fluctuations and higher
marketing & advertising costs
1,000+ retailers visited AC plant
➢ The resultant price increase by Lloyd, led to moderation in in Dec-19
volumes

➢ Lloyd has, however, managed to improve brand imagery,

expanded distribution network, reduced forex exposure through
AC plant commissioning, and is proliferating product range with
washing machines and refrigerators
 LLOYD: GOING FORWARD
➢ Continue the journey of taking the brand from Mass to Mass Premium positioning

➢ Leverage own AC production to strengthen offering, improved quality with better

cost management

➢ Reinforce presence through leading MFR and RR chains and leveraging Havells’

association

➢ Nurture newer categories like Washing Machines and Refrigerators to become a

comprehensive consumer durable brand

➢ Focus on improving margins, to build a growing, sustainable and profitable business

HAVELLS
FINANCIALS

HAVELLS
 STANDALONE FINANCIALS
Financial highlights in millions of Rupee

FY17 FY18 FY19 9M FY20

Net Revenue 61,353 81,385 100,576 72,122

Growth % 14% 33%** 24%** (1%)

EBIDTA % 13.4% 12.9% 11.9% 10.8%

PBT % before exceptions 13.5% 12.3% 11.5% 9.7%

PAT % before exceptions*

9.7% 8.6% 7.9% 7.7%

CAPEX (incl. intangibles) 2,386 15,888 5,009 3,336

ROCE % 27% 30% 30% 26%
Net Worth 32,736 37,392 42,425 44,789
Net Working Capital 5,274 3,131 7,625 8,814
Cash & Bank 19,375 15,262 12,848 11,524

* PAT for FY18 and FY17 was 8.8% in both years including exceptional items
** Ex-Lloyd excise adjusted growth in FY18, FY19 and 9M FY20 was 13%, 23% and 2% respectively
AWARDS AND ACCOLADES

HAVELLS
 RECENT RECOGNITIONS

Dun & Bradstreet's 'Best Corporate in PHD Chamber: Good Corporate Citizen
the Electrical Sector' Award Award for Social Welfare 2019

Forbes ‘Entrepreneur of the Year Business Today: Best CEO Award in

Award’ 2019 ‘Consumer Durables Category’
 SUMMARY
➢ India represents large untapped opportunity with lower penetration, higher

unorganized sector & growing electrification

➢ Havells preparing for future with constant products expansion, deepening market reach

& brand reinforcement

➢ Organic leverage with opportunistic acquisition to drive growth

➢ Strengthening management bandwidth to lead ambitious growth plan

➢ Native business acumen, market connect and ethics remain core values