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Havells likely to enter small home appliances business

02 Jun 2011 Evaluate

Havells India, a leading player in the lighting and fixtures segment, electrical and power equipment sector in India, is planning to enter into small home appliances business. From July this year, the company will start selling small home and kitchen appliances, hoping to profit from Rs 5,200 crore market currently dominated by Philips, Panasonic, Morphy Richards and Baja.

The company is planning to outsource 70% of its manufacturing to local vendors and the rest to its partners in China, where its design centre will be responsible for developing the product. Its product range will include mixer, irons, hand blenders and cooking and brewing appliances. Over the next two to three years the company plans to invest Rs 70-80 crores in marketing and development of its small appliances range.

Initially, Havells will sell its products in top 40 cities through some 4000 outlets retailing electrical goods. The product will also be sold through 115 exclusive Havells Galaxy stores, which will be increased to 200 by the end of this financial year. The company is also looking to export its products to Latin America and Thailand using the distribution channel of Sylvania, which it bought in early 2007.  This acquisition had catapulted Havells into the top league of lighting equipment makers, behind Philips, Osram and GE.

Havells India is a billion dollar organization and India’s one of the largest and fastest growing electrical and power distribution equipment manufacturer.

Havells India Share Price

1238.50 -21.20 (-1.68%)
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