Previously we looked at the elaborated marketing strategy of Microsoft, the world’s leading software application provider. Now, let us hop over and look at the elaborated SWOT Analysis of Havells India.
Havells India Limited is a leading electrical equipment company producing a wide spectrum of products, including industrial & domestic circuit protection devices, cables & wires, motors, fans, modular switches, home appliances, air conditioners, electric water heaters, power capacitors, luminaires for domestic, commercial and industrial applications.
Another aspect that has made Havells India a giant today is marketing. Marketing changes as the world goes online, and when you want to stay up to date – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Want to see how Havells India has succeeded in the electrical equipment industry? In this blog, you will learn about the SWOT analysis of Havells India. Before we get started, learn more about Havells India’s company, how it was established, its products, financial position, and its competitors.
About Havells India
Havells India Limited is a major electrical equipment company and a major power distribution equipment manufacturer with a strong global presence. Havells enjoys very admirable market supremacy across a wide spectrum of products, including industrial & domestic circuit protection devices, cables & wires, motors, fans, modular switches, home appliances, air conditioners, electric water heaters, power capacitors, luminaires for domestic, commercial and industrial applications.
Havells India has been in the business of electrical equipment since 1958 and it is an Indian company based in Noida founded by Qimat Rai Gupta. The electronic brands which are leading in the Indian market are owned by Havells India such as Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptech.
More than 4000 professionals work at Havells India and the dealer’s community consists of 14000 plus with 29 branches in the country. Also, the company products are available in 60+ countries with manufacturing plants at 13 locations in India including Haridwar, Baddi, Sahibabad, Faridabad, Alwar, Neemrana and Ghiloth etc.
Over 90% of Havells India product offerings are energy efficient and manufactured in-house and that makes Havells – India’s most distinctive brand being preferred choice in electronic products by Indian and international households.
| Founder | Qimat Rai Gupta |
|---|---|
| Year Founded | 1958 |
| Origin | Noida, India |
| No. of Employees | 5,700+ |
| Company Type | Public |
| Market Cap | Rs71,714.83 Crore (2022) |
| Annual Revenue | Rs10,615.74 Crore (2021) |
| Net Income/ Profit | Rs1,039.64 Crore (2021) |
Products & Services by Havells India
Havells India has a variety of products and sub-products, below listed are some common types of products manufactured by them:
- Industrial & Domestic Circuit Protection Devices
- Cables & Wires
- Motors
- Fans
- Modular Switches
- Grooming Products
- Home Appliances
- Air Conditioners
- Electric Water Heaters
- Power Capacitors
- Luminaires for Domestic
- Commercial and Industrial Applications
Competitors of Havells India
Havells India had a monopoly in the market for about 65 years. The other companies which gave a challenge are
- Exide Industries
- CG Powers and Industry solutions
- Bajaj Electricals
- Maini Precision Products
As now we have a better understanding of Havells India, let’s look into the SWOT Analysis of Havells India.
SWOT Analysis of Havells India
A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Havells India to compare its business and performance with competitors and the industry as a whole.
So let us go ahead and first have a glance at the strengths of Havells India from the SWOT analysis of Havells India.
Strengths of Havells India
The strength of an organisation is the special abilities that make them stand out and create its own space in the market. Here are some strengths of Havells India:
- Preferred Choice & Loyalty: Havells as a brand has earned the position of being India’s most preferred choice in terms of electronic goods. The majority of the electronic products which are sold by Havells India are cables, wires, kitchen appliances, fans and electric water heaters. Buyers of these categories are loyal to Havells India and that’s the biggest strength of Havells India we can ever define.
- Market Share: Havells India is spread all over the world and the products are available in 60 plus countries. Havells products are made in India at its 13+ state-of-art manufacturing plants. The dealer community of 14000+ people makes Havells India products reach all over the world and in the households.
- Range of Products: Havells India manufactures a range of electronic products including home appliances, kitchen appliances, commercial & industrial appliances, fan & lighting, water heaters, motors etc. and many more. All the products are of high quality, cost-effective and electricity savers which is why these products rule the Indian market.
- International Markets: Havells India invests greatly in fast-moving and emerging markets including European, South Africa, the US and the UK. This strategy has expanded its presence and also helps to attain greater visibility.
- Genuine Material Suppliers: It has a powerful base of reliable suppliers of raw materials, thus facilitating the company to survive any supply chain bottlenecks.
- Highly Skilled Workforce: Havells India is empowering large resources in the training and development of its employees, resulting in a workforce that is not only highly competent but also motivated to achieve a surplus.
- Acquisitions & Mergers: Havells India is great in terms of acquisitions and mergers including its acquisition of Sylvania – a Frankfurt-based company that is leading the lighting business in global markets.
- CSR Activities: Havells India has a huge contribution to social initiatives and it commits to continuously improving its social responsibilities. Havells India’s CSR efforts revolve around eight strong pillars of health & nutrition, education, skill development, sanitation, healthcare, environment, heritage conservation and other humanitarian causes being children at the core.
- Follows Sustainability: Havells India lives on the ethos of sustainability and manufacturing its goods using new innovative efficiencies. Havells India is focused on delivering powerful, sustainable and energy-efficient solutions. Havells sustainability vision is to, reduce CO2 emissions, improve environmental protection, improve quality of life, offer profitable solutions to the market.
Weaknesses of Havells India
Weaknesses are the areas of an organisation where improvement or attention is needed the most. Some major flaws of Havells India are listed below:
- Globally Small Market Share: The global market share of Havells India is slowly going down. Big international brands like Samsung, Prestige, Philips etc. are covered at all places ultimately reducing the market visibility of Havells India.
- Debt Ratio: Havells India is estimated to owe a high debt ratio which is a big weakness for its business success.
- Financial Position: Havells India has seen a major downfall in its annual financial report that indicates a fall in all including net profit, annual revenue, total assets and market capitalization. The cause behind this is either Havells inefficient marketing strategies or uncontrollable expenses.
- A slowdown in Global Markets: A slowdown in the global market will affect more adversely after a series of acquisitions.
- Switchgear Segment: Although Havells India’s lights, switchgear, fans are preferred by household contractors, still Havells India has a weak place in the overall industrial switchgear segment or we can say on a global scale.
Opportunities for Havells India
Opportunities refer to convenient external factors that could grant the organisation a competitive advantage. Some of the opportunities of Havells India are listed below:
- Advantage of Being Leading: Havells is India’s leading brand in terms of electronic equipment and this can be taken as an advantage by Havells to extend its acquisition of other companies including Chinese manufacturers.
- Globally Emerging Markets: Critically, an emerging market economy is transitioning from a low income, less developed, often pre-industrial economy towards a modern, industrial economy with a higher standard of living.
- Working on Weak Segment: Havells India working on its weaknesses will provide them with more opportunities to expand its business operations.
- New Technology: Havells India may now use differential pricing in the new market thanks to the new technology. It will motivate the company to reinforce its existing clients via excellent service while also attracting new clients through various value-oriented offers.
- New Markets: The adoption of new technology criteria and government free trade agreements has provided Havells India with an opportunity to enter a newly developing market.
Threats to Havells India
Threats are something that can sceptically affect the organisation externally. Here are some threats to Havells India:
- High Competition: Havells India’s stable profitability has increased many competitors in the industry over the last two years which has put downward pressure on not only profitability but also on overall sales, so this is one of the biggest threats for Havells India.
- Competitors Advance Technologies: New technologies developed by competitors or market disruptors could be a serious threat to the industry in the medium to long term future. This is because due to the new technologies developed by the competitors they would be able to do more production, and because of more production, they would be able to supply more as per the demand. New technologies also help in reducing the cost of production.
- The Pressure of Environment Bodies: The company follows heavy manufacturing of electronic equipment at its 13 manufacturing plants led to increasing pressure from environmental activists and several lawsuits against Havells India for exploiting the environment.
- Local Distributors & Contractors: Distributors and contractors taking contracts for fitting electronic components in Indian households are using local or duplicate electronic components to save higher margins and to increase their profit. This has been a huge threat to Havells India because local manufacturers and distributors are capturing the market at a faster pace by providing higher margins to such contractors.
- Huge Dependence on Indian Market: Havells India is hugely dependent on economic movements of the Indian market because the business seeks maximum profit from India and a sudden uneven economic condition can lead to Havells India seeing some bad days.
This ends our elaborative SWOT analysis of Havells India. Let us conclude our learning below.
To Conclude
At the end of the SWOT analysis of Havells India, we would like to conclude that Havells India was a very interesting organisation to research. Not only has Havells made their name in the industry but also has gained popularity through their social contributions. They served mid-day meals to nearly 50000 students each day leading to an increase in the number of students attending the school. The organisation also created a kitchen separately to serve these 50000 students freshly cooked food.
After reading this blog completely we have a good amount of data about Havells India. On studying the above data we know that Havells has overcome a lot of obstacles and beaten its competition and the biggest reason for this is the amazing marketing strategies that the company adapts and improves in highlighting its brand to its target audience.
Marketing is the aspect that no brand can neglect. Neglecting the marketing strategies leads to the decline of the product. No product in the market can survive without a strong marketing team. In today’s world, digital marketing is the leading marketing strategy adopted by almost all organisations. The importance of digital marketing has increased massively in the past few years. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Havells India has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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