FINANCIAL MANAGEMENT

A STUDY ON FINANCIAL PERFORMANCE OF ELECTRICAL INDUSTRY (A CASE STUDY ON HAVELLS)

SUBMITTED BY KAVERIAPPA.P.S 1DS12MBA24 DSCE SUBMITTED TO, PADMABHASKAR MAM SUB: FINANCIAL MANAGEMENT

ELECTRICALS AND ELECTRONICS INDUSTRY PROFILE:

The Indian market for electronic products is estimated at over US$25 billion. The industry is growing at about 30% per annum! At this growth rate, the market size is projected to exceed US$158 billion by 2015. Thanks to the eco-system, India is attracting big ticket investments from global players like Solectron, Flextronics, Jabil, Nokia, and Elcoteq. Indias consumer market for hardware can be a big incentive for the industry. The growth of telecom products has been breathtaking - India is adding 2 million mobile phone users every month! With telecom penetration of around 10%, this growth is expected to continue at least for another ten years. If computer/ IT products, auto electronics, medical, industrial, as well as consumer electronics are taken into account, India is going to import a whooping US$ 490 billion worth hardware in the next five years. The country is also emerging a global hub of electronic hardware manufacturing. The output of the electronic hardware industry is worth $11.6 billion at present.

HAVELLS COMPANY PROFILE:

Havells India Limited is a $1.3 Billion leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global footprint. Havells enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Electric Water Heaters, Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial and industrial Applications. Havells in 2007 created history by acquiring worlds renowned lighting company Sylvania thus registering itself amongst top 5 lighting companies in the world. Today, Havells owns some of the most prestigious global brands like Havells, Crabtree, Sylvania, Concord, Luminance and Standard. Its global network constitutes of 7000 professionals across 91 branches & representative offices in over 50 countries. Its fourteen state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar, Neemrana and seven world class manufacturing plants located in Europe, Latin America & Africa are manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry.

A 20000 strong global distribution network continuously strives to set new benchmarks in prompt delivery and service to customers powering their smiles like none other electrical brand in the country. Further to this the company pioneered the concept of exclusive brand showroom in the electrical industry with Havells Galaxy. Today over 160 Havells Galaxies across the country are helping customers, both domestic and commercial, to choose from a wide variety of products for different applications. Havells became the first FMEG Company to offer door step service via its initiative Havells Connect. Thanks to the

quality of products and quicker service, it has minimum customer complaints and highest customer satisfaction.

Today, Havells alongwith its brands, have earned the distinction of being the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. Havells offers same quality products for both Indian and international markets. Havells products & processes have acquired a number of International quality certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) thus complying with stringent quality norms at even the most testing markets, worldwide. It is committed to keep powering the world with its state-of-the-art innovations and energyefficient solutions. Currently 70% of its product offering is energy efficient.

Social and environmental responsibility has been at the forefront of Havells operating philosophy and as a result the company consistently contributes to socially responsible activities. For instance, the company is providing mid-day meal in government schools in Alwar district, covering 30000 students per day. Besides this company has acquired land for constructing a larger kitchen with all the modern facilities to serve freshly cooked food to 50000 students in the area. The group company, QRG Healthcare runs a 120 bed hospital in Faridabad and will soon launch another 400 bed hospital in Faridabad by end of the year. In the past, the company has generously contributed to the society during various national calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund etc. The essence of Havells success lies in the expertise of its fine team of professionals, strong relationships with associates and the ability to adapt quickly and efficiently, coupled with the vision to always think ahead.

COMPANY BACKGROUND: Industry Name: Electric Equipment - General House Name: Havells Group Incorporation Date: 31/12/1983 MANAGEMENT: Name A P Gandhi Adarsh Kishore Anil Gupta Niten Malhan Qimat Rai Gupta Designation Director Director Joint Managing Director Director CEO Face Value: 5.0 ISIN: INE176B01026 Market Lot: 1

Qimat Rai Gupta Rajesh Gupta S B Mathur S K Tuteja Sanjay Gupta Sanjay Gupta Sanjay Johri Surjit Gupta V K Chopra Name A P Gandhi Compitators: ABB Ltd. Advance Metering Technology Ltd. Anand Projects Ltd. Artech Power Products Ltd. Best & Crompton Engineering Ltd. Continental Controls Ltd. Crompton Greaves Ltd. Datar Switchgear Ltd. Dyna Lamps & Glass Works Ltd. Easun Reyrolle Ltd. ECE Industries Ltd.

Chairman & Managing Director Director (Finance) Director Director Company Secretary & Compliance Officer Secretary Associate Vice President- Accounts Director Director Designation Director

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