Detailed SWOT Analysis of V Guard Industries – An Indian Electrical & Home Appliances Manufacturer

Quick Stats on V Guard Industries

Founder	Kochouseph Chittilappily
Year Founded	1997
Origin	Kochi, Kerala, India
No. of Employees	2,686+
Company Type	Rs 9,036.49 Crore (2022)
Market Cap	Rs 968.4 Crore (2021)
Annual Revenue	Rs 53.16 Crore (2021)
Net Income/ Profit	$ 6.009 Billion (2020)

 

Products & Services by V Guard Industries

V Guard Industries has a variety of products and sub-products, below listed are some common types of products manufactured by them:

• Voltage Stabilisers
• Inverter, Dups, Solar Power Systems and Inverter Batteries
• Electric, Solar and Heat Pump Water Heaters
• Wires and Cables
• Funs
• Kitchen Appliances
• Pumps
• Domestic Switch Gears
• Modular Switches
• Air Coolers
• Water Purifiers and 
• Others

Competitors of V Guard Industries

Here are some of the most competing companies of the V Guard Industries

• Suzlon Energy
• Voltamp Trans
• Schneider Infra
• Hitachi Energy
• CG Power

As now we have a better understanding of V Guard Industries, let’s look into the SWOT Analysis of V Guard Industries.

SWOT Analysis of V Guard Industries

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows V Guard Industries 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 V Guard Industries from the SWOT analysis of V Guard Industries.

Strengths of V Guard Industries

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 V Guard Industries:

• Diversified Products: As a consumer goods company, V Guard Industries offers a diversified range of products including domestic, industrial and agricultural electronic goods and appliances. V Guard Industries manufactures products such as voltage stabilisers, electric pumps, electric cables, electric motors, geysers, solar water heaters, electric fans and UPSs.
• Further Expansion: The company always bet big on its products and trusts its quality and this belief is defined as the strength of V Guard Industries. V Guard Industries is planning further to expand its consumer durables and kitchen appliances division outside South India.
• International Markets: V Guard Industries 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: V Guard Industries 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.
• CSR Activities: V Guard Industries has a huge contribution to social initiatives and it commits to continuously improving its social responsibilities. V Guard Industries 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.
• Customer Satisfaction: V Guard Industries achieved the position that it has today because of the trust and confidence imposed on them by its customers. Their customers are satisfied with V Guard Industries’s effective exceptional products and services.
• Follows Sustainability: V Guard Industries lives on the ethos of sustainability and manufacturing its goods using new innovative efficiencies. V Guard Industries is focused on delivering powerful, sustainable and energy-efficient solutions. V Guard Industries’ sustainability vision is to reduce CO2 emissions, improve environmental protection, improve quality of life, and offer profitable solutions to the market.

Weaknesses of V Guard Industries

Weaknesses are the areas of an organisation where improvement or attention is needed the most. Some major flaws of V Guard Industries are listed below:

• Globally Small Market Share: The global market share of V Guard Industries is slowly going down. Big international brands like Samsung, Prestige, Philips etc. are covered at all places ultimately reducing the market visibility of V Guard Industries. 
• Debt Ratio: V Guard Industries is estimated to owe a high debt ratio that is a big weakness for its business success.
• A Slowdown in Global Markets: A slowdown in the global market will affect more adversely after a series of acquisitions.
• Switchgear Segment: Although V Guard Industries’s lights, switchgear, and fans are preferred by household contractors, still V Guard Industries has a weak place in the overall industrial switchgear segment or we can say on a global scale.
• Operational Complexity: With an increasing audience, the group is providing a large number of consumer goods as much as they can. While making adjustments, a small change can make an unexpected impact on operational complexity. Providing a variety of products is causing operational complexity for the group. 

Opportunities for V Guard Industries

Opportunities refer to convenient external factors that could grant the organisation a competitive advantage. Some of the opportunities for V Guard Industries are listed below:

• Advantage of Being Leading: V Guard Industries is India’s leading brand in terms of electronic equipment and this can be taken as an advantage by V Guard Industries 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: V Guard Industries working on its weaknesses will provide them with more opportunities to expand its business operations. 
• New Technology: V Guard Industries 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 V Guard Industries with an opportunity to enter a newly developing market.

Threats to V Guard Industries

Threats are something that can sceptically affect the organisation externally. Here are some threats to V Guard Industries:

• High Competition: V Guard Industries’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 V Guard Industries. 
• 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’s heavy manufacturing of electronic equipment manufacturing plants led to increasing pressure from environmental activists and several lawsuits against V Guard Industries 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 increase their profit. This has been a huge threat to V Guard Industries because local manufacturers and distributors are capturing the market at a faster pace by providing higher margins to such contractors. 
• Huge Dependence on the Indian Market: V Guard Industries is hugely dependent on the economic movements of the Indian market because the business seeks maximum profit from India and a sudden uneven economic condition can lead to V Guard Industries seeing some bad days.

This ends our elaborative SWOT analysis of V Guard Industries. Let us conclude our learning below.