Summer Internship Report On Detailed Analysis of Havells India limited __________________________________________________ (In partial fulfillment of Master of Business Administration)

With special reference to (Havells India Ltd.)

By: Hitesh Goyal MBA Aug 29, 2008

IIPM
New Delhi

ACKNOWLEDGEMENT
The Project Titled Detailed Analysis of Havells India Limited has been conducted by me during 11-07-08 to 30-08-08 at Havellls India Limited (Cable Division). I have completed this project under the guidance of Mr. Sanjay Kaushik. I owe enormous intellectual debt towards my guides Mr. Sanjay kaushik who has augmented my knowledge in the field of Production. He has helped me learn about the process and giving me valuable insight in Production Strategies. I would like to thank all the respondents without whose cooperation my study/project would not have been possible/complete.

Last but not the least, I feel indebted to all those persons and organizations who/which have provided helped directly or indirectly in successful completion of this study. Date 30.08.2008 Hitesh Goyal

CERTIFICATE
This is to certify that Hitesh Goyal student of Master of Business Administration, class of 2008, IIPM, New Delhi has undertaken the Summer Internship Training at Havells India Ltd(Cable Division) during 11.07.2008 and 30.08.2008. under my close supervision and guidance. He has conducted a study and completed the Project Detailed Analysis of Havells India Limited. To the best of my knowledge, this piece of work is original and no part of this report has been submitted by the student to any other Institute/University earlier. Date 30-8-08 Mr. Sanjay Kaushik (Incharge Quality Control Department) Havells India Ltd.

TABLE OF CONTENTS

TOPIC ACKNOWLEDGMENT SYNOPSIS

PAGE NO. 2 5 6-7 8-16 17-27 39-41 29-38 42-47 48-49 50-51 52-55 56-60 61-63 64-65 66-70

CERTIFICATE FROM INDUSTRY GUIDE 3

Executive Summary
COMPANY PROFILE DIFFERENT POLICIES EXISTING MARKETING STRATEGIES Manufacturing Process & PLANT VISIT NEW CLIENTS INTERNATIONAL BUSINESS DEALERS NETWORK COMPARATIVE ANALYSIS SWOT ANALYSIS ETOP ANALYSIS NEW MARKETING STRATEGIES FACTOR OF SUCCESS

SYNOPSIS

NAME OF THE PROJECT: Detailed Analysis of Havells India Limited. NAME OF THE ORGANISATION: Havells India Limited (Cable Division). OBJECTIVE: To analyze the marketing strategies and operations of Havells . Objective of this project is to understand the marketing strategies of Havells and to know that where the Havells stands in electrical cables and wires industry. RESEARCH METHODLOGY: The methodology adopted is preparing some structured questions and asked these questions to number of respondents, which includes marketing, HR, finance managers, etc.. Questions are also asked to various officers in plant. Besides, informal interactions with individuals are also considered as a part of the research. SOURCES OF DATA: (i) PRIMARY - Respondents (ii) SECONDARY - Company brochures and manuals, Internet etc.

guide: - Mr. Sanjay Kaushik

Executive
Summary
6

Executive summary
Havells India Ltd, a billion-dollar-plus organization, and one of the largest & India's fastest growing electrical and power distribution equipment company, manufacturing products ranging from Building Circuit Protection, Industrial & Domestic Switchgear, Cables & Wires, Energy Meters, Fans, CFL Lamps, Luminaires for Domestic, Commercial & Industrial application and Modular Switches. Havells owns some of the prestigious global brands like Crabtree*, Sylvania, Concord, Lumiance, Claude, Sylvania:Linolite, SLI Lighting & Zenith.

NEW MARKETING STRATEGIES Designing of catalogue for the company A catalogue can be designed for the company which will contain all the products manufactured by the company along with there technical specifications. Advertisement in newspapers , magazines& media Advertisement in newspapers, magazines & media Searching new clients and sending Introductory letters Participation in technical fairs and exhibitions Participation in technical fairs and exhibitions in which companies from all over India participate and advertise there products. E- Marketing of company Company can advertise through online B2B (Business to Business) marketing sites. In E-marketing sites , companies can give details about there products, addresses of corporate office, marketing offices, employee strength, email I.D., clients , product catalogue etc
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Company Profile

Company Profile
Overview
Havells India Ltd, a billion-dollar-plus organization, and one of the largest & India's fastest growing electrical and power distribution equipment company, manufacturing products ranging from Building Circuit Protection, Industrial & Domestic Switchgear, Cables & Wires, Energy Meters, Fans, CFL Lamps, Luminaires for Domestic, Commercial & Industrial application and Modular Switches. Havells owns some of the prestigious global brands like Crabtree*, Sylvania, Concord, Lumiance, Claude, Sylvania:Linolite, SLI Lighting & Zenith. With 91 branches / representative offices and over 8000 professionals spread over 50 countries across the globe, the group has achieved rapid success in the past few years. Its 20 state-of-the-art manufacturing plants spread over India, Europe, Latin America & Africa churns out globally acclaimed products like Switchgear, Luminaires, CFLs etc. Havells India Ltd is a name synonymous with excellence and expertise in the electrical industry. Its 20000 strong global distribution network is always ready to service its clients. The company has acquired a number of International certifications, like CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today Havells and its brands has emerged as the preferred choice for a discerning range of individual and industrial consumers both in India and abroad. The essence of its success lies in the expertise of a fine team of professionals, strong relationship with associates, the ability to adapt quickly, efficiently and ably supported with the vision to think ahead. Havells India Ltd has recorded a turnover of Rs. 5002 crores in the previous financial year and is poised for another quantum growth.

Vision: "To be a globally recognized corporation that provides best electrical & lighting solutions, delivered by best-in-class people." 9

Mission: To achieve our vision through fairness, business ethics, global reach, technological expertise, building long term relationships with all our associates, customers, partners, and employees.

Values:

Customer Delight : A commitment to surpassing our customer expectations. Leadership by example. A commitment to set standards in our business and transactions based on mutual trust. Integrity and Transparency : A commitment to be ethical, sincere and open in our dealings. Pursuit of Excellence : A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best in class

Manufacturing Plants
Powerful trends are shaping up industry for the 21st century. Because of rapid spread of advanced technologies complexity of work is increasing - almost daily. With the state of the art equipments and manufacturing facilities, QRG group is helping to boost safety in workplaces from the factory to the offices, domestic buildings to commercial plazas. All the manufacturing units are ably supervised and controlled by technocrats and industry specialists. The group has well managed, well-equipped tool rooms with machines like CCV Line, CNC Machines, EDM Wire Cut, Spark Erosion Machines, Lathes and Surface Grinders. Our strategic alliances with some of the leading technology corporations in the world of electrical engineering, ensure constant access to the latest developments in the international markets, which are then adapted to the tough tropical conditions. Our manufacturing units are fully equipped with the latest and most sophisticated facilities in India. And in the hands of our highly qualified technical experts, this results in some of the most advanced product development in the country.

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All our manufacturing plants are ISO:2000 certified. We are in the process of attaning ISO:14001 for all the plants. The first one to get this certification is TTL, the meter manufacturing plant.

Manufacturing plants locations of Havells India Ltd.

Brands Havells Locations

Haridwar, Uttaranchal Products manufactured: Fans and CFLs Baddi, Himanchal Pradesh Products manufactured: MCBs, CFLs and Switches Samepur Badli, Delhi Products manufactured: MCBs, ELCBs and DBs Tilak Nagar, Delhi Products manufactured: Energy Meters NOIDA, UP Product manufactured: Fans Alwar, Rajasthan Products manufactured: Cables & Wires Faridabad, Haryana Products manufactured: CFLs and Industrial Products. Gurgaon, Haryana Luminaires and Lighting fixtures

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Brands Standard Locations

Jalandhar Products manufactured: MCBs, ELCBs, DBs, Wires and Industrial Switchgear

Brands Crabtree Locations

o

Gurgaon, Haryana Products manufactured: Modular Plate Switches & Accessories Bhiwadi, Rajasthan Products manufactured: Bathroom fittings & Accessories

Brands TTL, DZG, Duke Arnics Locations

o

Sahibabad, UP Products manufactured: Trivector Meters, Reference Standard Meters Hyderabad, AP Products manufactured: Energy Meters 1 Ferraris, 3 Ferraris, 1 Electronic, 3 Electronic

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Product range of Havells India ltd

Building circuit protection Miniature circuit breaker Changeover switch Residual current circuit breaker Residual current circuit breaker with overload and short circuit protection Distribution board Industrial circuit protection Air Circuit Breakers Loadline MCCBs Digital MCCB Panel Board System Automatic Transfer Switches Changeover Switches By-Pass Changeover Switch Switch Disconnector Off Load Changeover Switches Contactor Thermal Overload Relay Starters Switch Disconnector Fuse Fuse Switch & Switch Fuse Fuse Holder 13

 Fuse Link & Fuse Base

Plug & Socket Load Break Switch Capacitors Cables LT PVC/XLPE Power/Control Cables Domestic House Wire/Multicore Flexible Cables Specialty Cables a) Telephone Cables b) Instrumentation Cables Energy meters Lighting solutions CFL Fans Modular plate switches Bath Fittings and Accessories

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Corporate Governance
We at Havells define corporate governance strategically, which encompasses not only what we do as a company with our profits, but also how we make them. It goes beyond philanthropy and compliance and addresses how our company manages its economic, social, and environmental impacts, as well as its relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. We as a company have been in lead in offering a portfolio of eco responsible products and services that deliver powerful, sustainable, energy-efficient solutions that don't compromise on capacity and security. Our eco responsibility initiative also focuses on how we run our business, and includes efforts to develop an alternative-energy strategy, and thus reduce the environmental impact of our operations. At Havells, we strive to bring corporate responsibility to every aspect of our business. We're committed to managing a responsible and diverse supply chain that's consistent with our high standards for environmental and business practices. Breaking down the barriers that constrain innovation is a challenge; Havells has readily embraced right from the start. Our ability to build communities and promote the exchange of ideas through assistive technologies, participation programs, and standardization is transforming the way people experience our products. We offer our customers holistic energy-efficient solutions, enabling them to not only save money and protect their capital investment, but also lower their energy usage and protect the environment, thus fulfilling our CSR responsibility of sustenance of depleting environmental resources. Corporate Governance and Ethics An implicit sense of ethical business conduct has been the cornerstone of the Havells way on corporate governance. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which our group companies have been shaped. This is what we have endeavored to do in the 50 years of our existence. Our values of understanding, trust, integrity and ethics have served us in good stead. Corporate governance as practiced by our Group translates into being fair and civicminded, fulfilling our duties to the entire spectrum of stakeholders, and, most importantly, making integrity an article of faith across all our operations. The group's adherence to ethical business conduct is rooted in the vision of its Founder Mr Qimat Rai Gupta. We think we started on sound and straightforward business principles, considering the interests of our shareholders and health and welfare of our employees as foundation of our long term success.

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Employee Relations
Our people are the key to our success. Their skills, knowledge, ideas and enthusiasm drive our business. We have high-quality, diverse workforce and employees who fulfill their potential. We have achieved this by giving them development and advancement opportunities along with competitive compensation and benefits that appropriately reward performance We communicate widely with employees to demonstrate how their efforts contribute to our success and to listen to their concerns. We also encourage them to align with our vision. We are committed to open communications and a workplace where everyone's voice is heard. We use several channels to communicate with employees, including an internal web portal and company website along with communication sessions with the top management of the company. These sessions provide assessment of employee satisfaction and are inputs for business planning, management decision-making and company strategy development. They also help employees implement company policies, meet high standards of conduct and ensure their behavior reflects company values and policies.

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Different Policies
Quality Policy

Building customer confidence by providing a wide range of quality products and services through team work. Havells is synonymous with quality products in the field of electrical industry, because of its constant innovations and stress on product research and development. A dedicated and highly motivated team of people of the company make it possible to achieve the companys quality policy. Due to this policy most of the companys products are approved by international quality bodies such as KEMA, UL, CE, CSA, and VDE and are as per IEC standards. Havells is widely perceived as a top quality manufacturer with high brand equity and is an ISO 9001: 2000 certified company. 8 Quality Management Principles of Havells Customer Focus Leadership Involvement of People Process approach System approach to management Continual Improvement Factual approach to decision making 17

These 8 quality management principles are used as a basis for all the operating systems of the company leading to all its plants being ISO 9001:2000 Certified. The essence of quality at Havells is closely wrapped in the way of thinking, planning and working of havells. The Quality Mantra of Havells is to deliver products that are safer, faster and simply better. Each time, every time. Building customer confidence through teamwork is a top priority to provide a wide variety of products and services. Havells have a simple rule on quality. if it doesn't exceed customer expectation, it's not quality performance. Various Certifications and/or Approvals

ISO-9001 : 2000 (all manufacturing units) KEMA KEUR CE Smark CSA CB SEMKO SIRIUM (Malaysia) SPRING (Singapore) TSE (Turkey) SNI (Indonesia) EDD (Bahrain)

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Certifications and Approvals (Cable Division) ISO 9001:2000:- For Design, Manufacture, Marketing, and Servicing of Power, control, special, and instrumentation cables and Domestic wires. IS:1554 (Part-I) :- PVC insulated (Heavy Duty) Electric Cable. For working voltages up to and including 1100 V. IS:1554 (Part-II) :- PVC insulated (Heavy Duty) Electric Cable. For working voltages from 3.3 KV up to and including 11 K V. IS:7098 (Part-I) :- Cross linked polyethylene insulated PVC sheathed cables. For working voltages up to & including 1100 V. IS:694 :- PVC insulated cables for working voltages up to & including 1100 V. FIA :- Fire Insurance Approved for wires. TAC :- Tarrif Advisory Committee for wires.

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Human Resource Policy

The Company values human resources as it is very vital to the growth of the Company. Havells continuously evolves policies and processes to attract and retain its substantial Pool of scientific, technical and managerial resources through friendly work environment that encourages initiatives by individuals and recognizes their performance. Employee Empowerment drives Havells employee policies, as Company try to continuously focus on giving every member of the team a challenging and happy working environment. HR Department encourages them to pursue their education while they work. Havells also encourage and facilitate regular training through Technical workshops conducted by Companys overseas collaborators and management workshops by independent consultants. In turn companys employees are energized into pushing themselves beyond the limits and thus use their potential to the maximum. Training to existing employees is continuously being imparted in-house and through external sources to hone their skills for meeting challenges. Havells always encourages young personnel with their ideas and view. Management is easily accessible to the employees and their problems are attended to promptly. The relation between the management and employee is very cordial. Regular open meeting are conducted in the Company where each and every employee present their views and opinion before the management and others just like a member of a family.

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Social Obligations
Serving people with no means is the duty of every well-to-do person or company in India. In the wee hours of 26th December, 2004, the human world faced one of the biggest tragedies of all time when Tsunami hit various countries in South East Asia including India, thus resulting in widespread loss of lives, property, livelihood and wealth of hundreds of thousands of people across Indonesia, Thailand, Sri Lank and Southern India. Havells tried to help the disaster affected. All members of the Havells were overwhelmed by the calamity and came forward to contribute a days salary which was matched by the Company in the Prime Ministrys Relief Fund for the Tsunami Relief Operations. Havells has starting to provide the mid-day meal to children in 3 Schools in Alwar region, Rajasthan where the Company has its Cable & Wire Division. Havells has also planning to start this activity in other areas especially near the Companys other units. The Company had contributed Rs.11 Lacs to QRG Foundation, a charitable trust, founded by QRG group. The Charitable Trust is running a mobile dispensary, which goes into different parts of Delhi and provides free medical check-ups and medicines to about 150-200 people every day.

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Health, Safety and Environmental policy

Havells is very much concerned with the health and safety of every person at its factories and offices and is protecting and nurturing the environment. Havells is concerned not only to comply with only regulatory norms for prevention and control of pollution, but also to go beyond this by adopting clean technologies and improvement in management practices. Directors of Havells have always felt that compliance of end-of-the-pipe effluent and emission standards and attentions is also given for planting of trees, greening of surrounding areas in and around factories and beautification of the plants vacant premises. The employees of Havells are also made conscious of their responsibilities towards protecting the environment and add its beauty. Havells are in the process of getting ISO 14000 and 18000 approvals for our Domestic Switchgear and Industrial Switchgear plants as a confirmation of our environmental friendly operations taking care of all safety aspects in the working conditions of each person employed in the Company.

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CONSERVATION OF ENERGY

Energy conservation measures taken Havells gives priority to energy conservation. Havells regularly reviews measures to be taken for energy conservation, consumption and its effective utilization. A 10 HP jet pump has been replaced by a new and efficient Submersible Pump. This shall save energy on account of running the pump from 4 Hours daily to 2.1/2 hours All conventional GLS lights at the works have been changed with energy saving CFLs. Also new energy saving fans wherever possible have been installed. Screw type Air compressors have been put to replace the old reciprocating air compressors. Electric oven has been replaced by HSD fired oven. 11 KV RSEB Lines are replaced by 33 KV RSEB lines, for better reliability, lesser power cuts and power fluctuations. The traditional slip ring motors have been replaced by new induction motors, with frequency converter drives leading to huge power savings. The traditional On-Off Temperature Controllers are replaced with latest P.I.D. Controllers. The transparent sheets are used in our new shed roofing to use solar light, which gives more light and savings of energy. The new heat economizer is placed at the boiler to use the energy from boiler exhaust. Replacement of G.I. Pipe lines for supply of compressed air to SS Pipe Line of bigger diameter, to decrease losses at bends and joints. 23

Additional Investment and proposals for Energy Conservation The requirement of power is not very large and the position did not warrant any special measures for conservation of energy. Havells planned to maintain the power factor after introduction of Digital Power factor meters, and new transformers worth Rs.1.5 Lacs to monitor the consumption; this will give expected saving of Rs.55000/- per month. Havells decided to purchase one new screw type air compressor having capacity of 200 CFM worth Rs.5.5 Lacs, this will give a saving of Rs.3.25 Lacs per annum. The Switchgear Unit of Havells is going to replace compressor having capacity of 244 CFM in place of 2 Nos. 100 each CFM belt drive. This will save electricity consumption. The Switchgear Unit of Havells is going to install One 1000 KVA Transformer, with built-in on load tap changeover to achieve proper voltage and avoid extra losses, due to the low voltage available in the area. The company will save energy by at least 5%. Benefits derived as a result of above Savings of Energy and Electricity consumption hence reduction in electricity bills. By changing one new Air Compressor, the company would be able to save Rs.3.25 Lacs p.a. By changing the GLS bulbs into CFLs and Tube Lights in production area, the Company is able to save energy by 75%.

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Research And Development Policy

Specific Areas in which R & D carried out by the Havells (i) Import Substitution (a) Project for indigenous manufacturing of Table, Pedestal and Wall Fan has been taken up to reduce dependence on Imports of this range of Fans. (b) Setting up of first plant in India to manufacture P.L.L. (Parallel Light Lamp), FPL (36W and 18W CFL) which started its operation in the month of February, 2005. This shall serve an import substitute and goes with Havells philosophy of making India selfreliant rather a producer for the world market for manufactured goods. (ii )Technology up gradation (a) Switchover to HR FR WIRES from normal FR wires (b) Installation of MULTIDRAW FWD machine from Neihoff- Germany. (c) Installation of 3150 mm DRUM TWISTER machine. (d) Procurement of New 1000 KVA H.T. Transformer (e) Reconstruction of Modified R & D laboratory. (f) Installation of Vacuum Loaders on H.T Cable extrusion line. (g) Reciprocating Compressors has been replaced by Screw Compressor to achieve Energy conservation. (h) Energy efficient range of Ceiling Fans, the first of its kind in the Indian Market was launched in 1200 mm & 1400 mm sweeps (Velocity E.S - 50 & Fusion E.S-50) (i) Certification from BIS (Bureau of Indian Standards) has been obtained for 1200 mm & 1400 mm Ceiling Fans.

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(j) 380 KVA HSD fired DG set installed for better Noise pollution control and better efficiency. (k) Introduction of micro processor based MCCB upto 250 Amp. instead of thermal magnetic design. (iii) Quality Improvement (a) Traditional normal FR WIRES replaced by Heat Resistive Insulation . (b) More consistency in diameters as well as annealing in copper conductor. (c) Improved quality of Dielectric in HT extrusion line. (d) Introduction of better quality of Varnish for improved reliability of the motors stator. (e) Capacitor endurance testing equipment installed. Life testing of capacitor started. (f) Standard colour samples for inspection and manufacturing introduced at various locations i.e. from vendor manufacturing to inhouse manufacturing. Reduction in rework on various locations. (g) Implementation of systems based on 5S, TQM and Kaizen Benefits derived as a result of above (a) Cost Reduction (b) Usage and Design Improvement (c) Quality Upgradation (d) New Product Introductions (e) Reduction in Scrap generation Future plan of action (a) To continue R & D work for upgradation of technology of the existing products, continuing with the efforts on import substitution and developing new products helping the company to expand its range of products, to meet market needs and to provide customers delight. 26

(b) Introduction of Various new models in Ceiling Fans/ Table / Pedestal / Wall Fans and light duty ventilating fans. (c) Construction of new HT extrusion line by incorporating C.C.V extrusion line. (d) Development of HV cable of voltage rating more than 33KV grade. (e) Capacity enhancement of micro processor based MCCB.

Technology Absorption, Adaptation and Innovation

1. Efforts, in brief, made towards technology absorption, adaptation and innovation. Havells is regularly pursuing for up gradation of technology in existing products and development of new products and also adopted the latest developments made by its Collaborators. Havells is constantly in touch with the latest developments in the field of electric/ electronics and accordingly updation in plant and machinery is regularly being reviewed. 2. Benefits derived as a result of above efforts. Improvement in quality of the products, improvement in manufacturing process, resulting in cost reduction and acceptability of the products in international market, grant of ISO 9001:2000 certification etc.

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Company profile

Company Name Corporate Address

HAVELLS INDIA LIMITED E-1, Sector 59, Noida-201307 (U.P.), India Ph: +91-120 2477777 Corp. Off.: Fax: +91-120 - 2583904 / 2588182 / 2477666, E-mail: marketing@havells.com Intl. Busi. Div.: Fax: +91-11-23916816, E-mail: ibd@havells.com http://www.havells.com/ 1958 Havells India limited, Standard Electricals limited, Crabtree India limited, TTl. 24 13 Above 1000 People Switchgears, Control Gears, Penals, Energy Meter, All Types of Cables, Energy Saving Lamps, Fans, Luminaries Manufacturer Circuit Breakers, Fuses, Electrical Plugs & Sockets, Power Cables Worldwide Southeast Asia, Mid East, Africa, Worldwide Above US$100 Million (USD) 28

Web site Year established Sister concerns Branches No. of Plants Number of Employees Products/Services

Business Type Industry Focus Geographic Markets Company Markets Annual Sales Range

Manufacturing Process & Plant Visit

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HAVELL'S INDIA LIMITED (CABLE DIVISION) ALWAR

ACSR CONDUCTOR MANUFACTURING PROCESS DESCRIPTION

1. 2. 3. 4. 5.

WIRE DRAWING STRANDING REWINDING TESTING DESPATCH

~ ~ ~ ~ ~

Al Wires to be drawn for required size Required Conductor Size to be Stranded a/w Steel core with Specified Design. Conductor to be rewounded as per packing length. Condoctor to be tested as per specification. All Tested length are cleared for despatch.

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HAVELL'S INDIA LIMITED (CABLE DIVISION) ALWAR

WIRE DRAWING STRANDING

COND. SCREENING ,INSULATION & INSULATION SCREENING ( non metalic part)

Wires to be drawn for required size Required Conductor Size to be Manufactured with Specified Design. Conductor to be screened, Insulated & insulation screened ( non metalic part) with required specification in one process through tripple extrusion process. Cores to be Rewinded & Cured with specified requirement. Cores to be screened with cu tape helically as per required specification

CORE CURING

REWINDING

&

INSULATION SCREENING ( METALIC PART)

LAYING-UP INNER SHEATH ARMOURING OUTER SHEATH REWINDING & TESTING

All Rewinded Cores to be arrange together to from a Cable with specified design. To be done with required specification. To be done with required specification. To be done with required specification. All Cables are Rewinded on Wooden Drums & Tests Carried-out as required specification.

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HAVELL'S INDIA LIMITED (CABLE DIVISION) ALWAR

CABLE MANUFACTURING PROCESS CHART (WINDING WIRE)
1. 2. WIRE DRAWING INSULATION ~ ~ Wires to be drawn for required size Conductor to be Insulated with required specification.

3.

COILING & TESTING

All Cables are Rewinded & Tests Carried-out as required specification.

HAVELL'S INDIA LIMITED (CABLE DIVISION) ALWAR

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ACSR CONDUCTOR MANUFACTURING PROCESS DESCRIPTION

1. 2. 3. 4. 5.

WIRE DRAWING STRANDING REWINDING TESTING DESPATCH

~ ~ ~ ~ ~

Al Wires to be drawn for required size Required Conductor Size to be Stranded a/w Steel core with Specified Design.

Conductor to be rewounded as per packing length. Condoctor to be tested as per specification. All Tested length are cleared for despatch.

Plant Profile(ALWAR)

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Havells India Limited Took over a manufacturing unit at Alwar, Rajasthan for Power Cables & Wires. Havells Cable Division is now a name to be reckoned with is the leading quality manufacturer of LT XLPE, PVC Insulated Cables and Domestic cables in Rajasthan. Havells earned the reputation of ONCE HAVELLS ALWAYS HAVELLS. Location : Matsya Industrial area Alwar. Jaipur 150 Kms. Delhi 163 Kms. Alwar city 12 Kms. Nearest national Highway: Nearest Railway Station: Nearest Airport: Infrastructure Facilities: a) Power : b) Telephone: 1,024 lines, STD, FAX, TELEFAX facilities are available 132 KV GSS is situated at MIA Telephone exchange is situated in MIA with N.H. 8 at 90 Kms. Alwar (junction) Delhi

Distance from important place:

Telephone nos.:

0144-81601 & 81602 34

Fax no.: Address: Matsya

0144-81603 Havells India limited (Cable Division), A-461/462,

Industrial are Alwar (Raj.)-301001-India

Product Range:
Cables i. ii. iii. LT PVC/XLPE Power/Control Cables Domestic House Wire/Multicore Flexible Cables Specialty Cables a) Telephone Cables b) Instrumentation Cables

PVC INSULATED CABLES

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Range : Single Core Industrial HRFR PVC insulated (Life Line) Copper Conductor (Unsheathed) or Sheathed Flexible . Singhe Core industrial HRFRLS PVC insulated (Life Guard) Copper Conductor (Unsheathed) Wiring Cables 1100 Voltage Grade. Cable for Fixed Wiring 1100 Voltage Grade Single Core industrial ZHLS insulated (Life Guard) Copper Wiring Cables 1100 Voltage Grade. Conductor (Unsheathed) and Sheathed Black 1100 Voltage Grade.

Multicore Round HRFRLS / ZHLS insulated Copper Conductor Cables 1100 Voltage Grade. Three Core Flat Flexible Cable for Submersible Pump Motors

Gas Injected Physical Foamed Polyethylene Jelly Flooded Co- axial Cables. PVC Insulated Telephone Cable.

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XLPE Power & Control Cable

Features : Highly compacted conductors to reduce AC losses which are proximity effect. Purest insulation to bear thermal and thermo-mechanical normal and short circuit temperature conditions. Complete protection against most forms of electrolytic and Extruded inner sheath(for XLPE insulated power cable HT). Sequencial length marking on outer sheath of the cables. Over 90%armour coverage of armoured cables.. due to skin and

stresses at continuous chemical corrosion.

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Cables
Advantages of PVC Cables A non-hygroscopic insulation almost unaffected by moisture. Non-migration of compound permitting vertical installation. Complete protection against most forms of electrolytic and chemical corrosion. A tough and resilient sheath with excellent fire - resisting qualities. Good ageing characterstics. Not affected by vibration. A non-hygroscopic insulation almost unaffected by moisture. Advantages of XLPE Cables Higher Current Rating. Higher Short Circuit Rating. Longer Service Life. For a short time it can withstand maximum 130oC and is favourable to endure short circuit stresses. It is less sensitive to the setting of the network protection. Because of the thermosetting process taking place due the effect of cross linking, the crack resistance is increased. Due to the chemical cross-linking internal stresses are reduced. Consequently the material is less sensitive during manufacturing process to the setting of the cooling gradient. The thermal resistivity of cross-linked material is favourably low, compared to thermoplastic material. The low dielectric loss is a significant advantage. The excellent mechanical features of the insulation improves the protection against external effects. The resistance of the XLPE to acids, alkalies is outstanding and is often compensating the adverse environmental influences.

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EXISTING MARKETING STRATEGIES

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NEW MARKETING STRATEGIES Marketing strategies which can be used in future by the company to increase its client base and increase its sales.
1. Designing of catalogue for the company - a four page catalogue can

be designed for the company which will contain all the products manufactured by the company along with there technical specifications. Companys vision , mission , goals, quality policy & address of corporate offices will also be mentioned in the catalogue. Catalogues can be send to the companies who are in power distribution sector and who can be potential clients of the company.
2. Advertisement in newspapers & magazines advertisements in

newspapers ( Times of India, Hindustan Times, Dainik Jagran, Punjab Kesri) and Magazines (Electrical Today , Electronics for you etc.) will help company increase there client base. Advertisement will contain the information about the products manufactured , quality policy , certifications and approvals from the government. The companies who are in power distribution sector and who has requirement of switchgears can contact the head office mentioned in advertisement.
3. Searching new clients and sending Introductory letters - potential

Clients or the companies dealing in power distribution sector can be searched from internet. Introductory letters along with company catalogue can be send to these companies. We can expect orders from these companies in future.
4. Participation in technical fairs and exhibitions participation in

technical fairs and exhibitions like ELECRAMA (its an electrical exhibition organized by IEEMA every year in which companies from all over India participate and advertise there products. Buyers from all over India visit the fair and place orders) will also help increase its client base.
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5. E- Marketing of company company can advertise through online

B2B (Business to Business) marketing sites. In E-marketing sites , companies can give details about there products, addresses of corporate office, marketing offices, employee strength, email I.D., clients , product catalogue etc. Buyers can search sellers according to product and place orders to the company. Company can give advertisement banners which can be hyperlinked to company website. Example : www.punebusinessdirectory.com www.tradeindia.com www.indianyellowpages.com www.indiamart.com
6. Online searching of buyers - company can also search clients on

Internet on B2B (Business to Business) buying & selling sites. weekly checking of B2B sites can help in identification of buyers who are interested in purchase of products manufactured by our company.

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New Clients List

Clients

Bharti Airtel Limited

Airport Authority of India

Ansal

DLF Limited

Delhi Metro Rail Corporation

Eros Group

ICICI Prudential

Idea

Infosys

LT

Maha Genco

Parsvnath

Reliance Telecom

Reliance Industries Limited

TATA Consultancy Services

42

Unitech

Vodafone

W.B. Power Corporation

Cafe Coffee Day

Apgenco

BHEL

BPTP

BRP

BSNL

Chandigarh Police

Concor

DELPHI

AREVA

Indian Railways

Mumbai Municipal

DDA

Air India

Apollo Cancer Hospital

43

Avon Cranes Ltd.

Nuclear Power Corpn. Ltd.

Bharat Heavy Electricals Ltd.

Sail

C.P.W.D.

Canara Bank

Best

System Powergear

Control Devices

Diebold Systems Pvt. Ltd.

Eastern Railway

Eicher Tractor Ltd.

Flex Industries Ltd.

Gas Authority of India

GVR Electro Techniques

44

Hindalco

Maruti Udyog Ltd.

Metro Rail

Mindspace

Rail Coach Factory

North Eastern Railways

Rado Industries Ltd.

NTPC

Permanent Magnet Ltd

Q.H. Tal Bros. Ltd.

Tisco

DRDO

Atul Auto Ltd.

Ashok Leyland Ltd.

Bharat Aluminium Co.

45

Australia Government

Bharat Coking Coal

Vizag Steel Plant

BMC

Vishal Retail Pvt. Ltd.

The Hindu

E.P.D.P. Housing Society

Reliance Energy Ltd.

H.P.C.L.

HCl

Highway Cycle Ltd. (Hero Group)

Hindustan Lever Ltd.

I.C.F

Indian Institute of Technology

Indian Oil Corporation

46

Integral Coach Factory

Kirloskar Brothers Ltd.

M.E.S.

Maharashtra State Electricity Board Maheshwari Electrical Mfrs. Pvt. Ltd.

Mahindra & Mahindra Ltd.

Raj Industries

Nest Foundation

Northern Coalfields Ltd.

47

International Business
QRGs International Business Division IBD is a dynamic team of professionals who are committed to fulfill the aspirations of the organization in the international markets. This team provides specialized sales, marketing and technical support along with services to meet the challenging requirements of the modern day customer. IBD caters its international clientele spread over 51 countries with offices in Dubai, China, Nigeria and distribution networks in all major countries. Despite the intense competition in the global electrical industry, Havells recorded a three times growth of 8 million USD in the previous year and targets to cross 22 million USD in the current year.

48

Havells Branch Offices Havells International Offices Distribution (22) Manufacturing & Development (10) Sylvania Lighting Headquarters (frankfurt) Havells International Offices Nigeria, China, Dubai Havells Branch Offices East : Bhubaneshwar, Guwahati, Kolkata, Ranchi West : Ahmedabad, Indore, Mumbai, Nagpur, Pune, Raipur North : Chandigar, Dehradun, Delhi, Haryana, Jaipur, Kanpur South : Bangalore, Chennai, Coimbatore, Hyderabad, Kochi Manufacturing and Development Centres Europe and Africa Erlangen, Germany, St. Etienne, France, Tienen, Belgium, Shipley, UK, Kairouan, Tunisia, Newhaven, UK Haarlem, The Netherlands, Latam, Inhedo, Brazil, Bogota, Columbia, San Jose, Costa Rica (1)

49

Dealer's Network

QRG's legendary customer focus empowers its people to build sturdy and lasting relationships with its business partners, employees and customers, thus paving the way for unparalleled future growth. Dealers form the core of the company and thanks to a well organized distribution network of over 2500 dealers and more than 30000 retail outlets in India the company is able to meet its customers demand.

50

51

COMPARATIVE ANALYSIS

STRATEGIC PLANNING SYSTEM

Havells India Limited

Finolex Cables Limited

Long term planning

Short term planning

Longer PLC

Shorter PLC

High value, High price products High volume, low price products

Controlled growth

Rapid growth

Mature & high growth business

High margin business

Standard Products

Customized Products

Design to cost MASS Marketing

Design to performance NICHE Marketing

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BUDGETING SYSTEM

Havells India Limited

Finolex Cables Limited Conservative

Aggressive

Fund for small and attractive locations

Fund for large and low cost locations

Less emphasis on cost cutting

More emphasis on cost cutting

Feature and quality driven

Cost driven

Margin of safety

Tight ship

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REPORTING SYSTEM

Havells India Limited

Finolex Cables Limited

Limited vertical integration

Vertical integration

Taller structure

Flatter structure

High level of MIS networking

Average level of MIS networking

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PERFORMANCE EVALUATION SYSTEM

Havells India Limited

Finolex Cables Limited Difficult

Easy

Frequent and repetitive evaluation

Occasional evaluation

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SWOT ANALYSIS

56

SWOT ANALYSIS

STRENGTHS
High Brand Equity Quality Products and Services Large Product Range Strong marketing Network Mature and High growth Business Strong Market Value Strong International Business Department High level of MIS Networking Excellent Execution Proactive Innovation Listed in the BSE and NSE High growth rate (100%). Self manufacturing of product. Full project execution facility Availability of capital. Strong management.

57

WEAKNESSES
Vision and Mission are not mentioned by company No advertisement through media Small product range in Cable and wire segment as compare to finolex The product line is small; we need to extend our product line. Less effective domestic marketing strategies as compare to International marketing strategies.

OPPORTUNITIES
Large no. of potential clients The Government of India has an ambitious mission of POWER FOR ALL BY 2012. This mission would require that our installed generation capacity should be at least 2, 00,000 MW by 2012 from the present level of 1,14,000 MW. The LV switchgear industry has shown excellent growth (almost 50%). Consistent improvements in product quality and inner urge to achieve a world class status have created increased demand for Indian electrical products in the international market A total capacity addition of around 70,000 MW is envisaged, entailing huge investment opportunities in distribution sector Providing access for electricity to 7.8 crore rural households in five years 58

In order to support a rate of growth of GDP of around 7 % per annum, the rate of growth of power supply needs to be over 10 % annually. For Havells, there are very large Investment opportunities exists in domestic international market . It is expected that demand will grow to 782 billion Kwh by 2006-07 and by the end of 11th Plan (2007-2012), a total capacity addition of around 70,000 MW is envisaged, entailing huge investment opportunities in distribution sector. State governments have agreed to allow the gradual entry of the private sector in distribution Since independence so far only about 44% rural households could be given access to electricity and more than one lakh villages are still to be electrified. The new programme involves providing access for electricity to 7.8 crore rural households in five years. In order to support a rate of growth of GDP of around 7 % per annum, the rate of growth of power supply needs to be over 10 % annually.

Indian manufacturers expect to get advantage by testing the equipments in NABL Accredited Laboratories so that re-testing may not be needed in the other countries covered under mutual recognition agreement for testing

THREATS
Customs duty of 5% has been imposed on iron and steel melting scrap. The 4% special CV duty, under section 3(5) of the Customs Tariff Act, 1975, which was imposed last year only on ITA goods and their parts/components, has been extended in general to all imports. It will apply to both agricultural and industrial products. This additional duty will not be included in the assessable value for levy of education cess on imported goods. Manufacturers will be able to take credit of this additional duty for payment of excise duty on their finished products.

59

 Rise in steel and aluminium prices: Hindalco has announced a hike of Rs 3,500 per tonne; SAIL is believed to have hiked prices by 7% between Rs 800 per tonne to Rs 2,000 per tonne for various grades of steel. Ispat Industries increased prices by Rs 1,000 per tonne. The power ministry's record in attracting foreign investors in the power trading business has been shocking, but now it has adopted a new tack: the ministry has strongly recommended 100% FDI in trading of electricity through the automatic approval route Increase in the prices of raw materials Entry of big players in the market. The company is facing increasing pressure on its margins, as rising input costs have not been completely passed on to end consumers. The company is venturing into capacitors and motors, though these sectors will provide sales growth but are low margin business with higher competition. Delay in acquisition in the European markets could also stifle its expansion plans in European market The companys principal inputs are aluminium and copper. Copper constitutes almost 40% of the total cost of production of electric equipment. The prices of these metals are currently on an upturn, which may put pressure on the margins. However, the company is able to pass on the incremental cost though with a time lag. The domestic market for consumer electric products is highly competitive with presence of unorganized sector. As the unorganized sector does not pay excise, the company has set up plant in Baddi, where it would have excise benefit through which it would be able to take on the unorganized sector more efficiently. 60

ETOP ANALYSIS
Threats
Customs duty of 5% has been imposed on iron and steel melting scrap. The 4% special CV duty, under section 3(5) of the Customs Tariff Act, 1975, which was imposed last year only on ITA goods and their parts/components, has been extended in general to all imports. It will apply to both agricultural and industrial products. This additional duty will not be included in the assessable value for levy of education cess on imported goods. Manufacturers will be able to take credit of this additional duty for payment of excise duty on their finished products.

Rise in steel and aluminium prices: Hindalco has announced a hike of Rs 3,500 per tonne, SAIL is believed to have hiked prices by 7% between Rs 800 per tonne to Rs 2,000 per tonne for various grades of steel. Ispat Industries increased prices by Rs 1,000 per tonne. The power ministry's record in attracting foreign investors in the power trading business has been shocking, but now it has adopted a new tack: the ministry has strongly recommended 100% FDI in trading of electricity through the automatic approval route Increase in the prices of raw materials Entry of big players in the market.

61

 The company is facing increasing pressure on its margins, as rising input costs have not been completely passed on to end consumers. The company is venturing into capacitors and motors, though these sectors will provide sales growth but are low margin business with higher competition. Delay in acquisition in the European markets could also stifle its expansion plans in European market The companys principal inputs are aluminium and copper. Copper constitutes almost 40% of the total cost of production of electric equipment. The prices of these metals are currently on an upturn, which may put pressure on the margins. However, the company is able to pass on the incremental cost though with a time lag.

The domestic market for consumer electric products is highly competitive with presence of unorganized sector. As the unorganized sector does not pay excise, the company has set up plant in Baddi, where it would have excise benefit through which it would be able to take on the unorganized sector more efficiently.

Opportunities
Havells mainly depends on its MCBs and Switchgear segment and It is estimated that the present size of the switchgear market, not including domestic switches, is around Rs 3100 crores. The LV switchgear industry has shown excellent growth (almost 50%). Indian electrical industry has registered about

62

19.3% growth the year 2004-05 as compared to the same period for the year 2003-04. Continuous handsome growth for this sector for at least next five years.

Consistent improvements in product quality and inner urge to achieve a world class status have created increased demand for Indian electrical products in the international market Indian manufacturers expect to get advantage by testing the equipments in NABL Accredited Laboratories so that re-testing may not be needed in the other countries covered under mutual recognition agreement for testing Large no. of potential clients A total capacity addition of around 70,000 MW is envisaged, entailing huge investment opportunities in distribution sector

Investment opportunities
It is expected that demand will grow to 782 billion Kwh by 2006-07 and by the end of 11th Plan (2007-2012), a total capacity addition of around 70,000 MW is envisaged, entailing huge investment opportunities in distribution sector. State governments have agreed to allow the gradual entry of the private sector in distribution Since independence so far only about 44% rural households could be given access to electricity and more than one lakh villages are still to be electrified. The new programme involves providing access for electricity to 7.8 crore rural households in five years. 63

In order to support a rate of growth of GDP of around 7 % per annum, the rate of growth of power supply needs to be over 10 % annually.

NEW MARKETING STRATEGIES

Advertisement in newspapers & magazines

The companies who are in power distribution sector and who has requirement of switchgears can contact the head office mentioned in advertisement.

Membership of industry associations (ex. IEEMA)

The company will be listed on the official website as a member of IEEMA , from the database of IEEMA the companies which are in power distribution sector can get the information about Ultima Switchgears.

Searching new clients and sending Introductory letters

Potential Clients or the companies dealing in power distribution sector can be searched from internet. 64

E- Marketing of company
Company can advertise through online B2B (Business to Business) marketing sites. In E-marketing sites , companies can give details about there products, addresses of corporate office, marketing offices, employee strength, email I.D., clients , product catalogue etc

Online searching of buyers

Company can also search clients on Internet on B2B (Business to Business) buying & selling sites.

65

Factors for Success

Strategic Alliances The company has formed strategic alliances and partnerships with many leading players operating in the end-to-end solutions in the power distribution equipment industry. Havells has entered manufacturing alliances with several leading electrical companies such as Electrium, Geyer AG, DZG, etc., which has assisted the company to leverage the technical expertise and developing quality products in the electrical products segment. Havells has efficiently leveraged alliances to gain an entry into global markets, developing a strong product portfolio to capture them. The company has developed efficient partnerships to increase its market penetration in the EU. Leading the Way through Innovation

Havells has focused on research and development to produce novel products, at the same time, reducing cost and upgrading the quality of its products. The company has a skilled workforce that works on its R&D projects. It has also entered into alliances with several companies, thereby facilitating sharing of technology. It has developed a good 66

brand name by introducing innovative products in the market, which has enabled it to penetrate the market.

Expansion Plans of Havells Globally

It had plans to open four new offices with two each in Far East Asia and in West Asia and North Africa region. With four international marketing hubs in London, Sri Lanka, Dhaka and Dubai, the company is targeting exports in a big way. As a part of its growth strategy, Havells is taking initiatives to tap potential markets in the EU. The Company has developed a strong brand presence through alliances with and the acquisition of leading electrical equipment manufacturers in the region. It has also initiated various segment-wise growth plans to drive growth in its overall operations. The company has identified the housing and power sectors as future growth drivers and plans to tap these spheres. Havells has plans to diversify its product portfolio by venturing into the electrical motors and power capacitors space. It also aims to leverage its established brand presence in these segments. The company expects to increase its exports by approximately 100 per cent. Havells also plans to increase its capacity to ward off cost pressures and reduce development costs. The company has plans to increase its brand presence and reach in the EU through strong acquisitions. It has plans to expand its operations in the EU in-organically and enhance its international presence.

67

Milestones in International Business

1) Havells Acquires Greek Company Havells India Ltd. has got the approval from its Board of Directors to acquire a Greek Company for an amount close to Euros 10 Million. This is Havell's Indias first overseas acquisition and it comes after three months of intense deliberations with a number of European companies. The due diligence for this acquisition is still is process. 2) Havells India currently has its own marketing and distribution office in UK. Havells currently is the lead supplier enjoying a 33 per cent market share in switchgear OEM segment. After completion, this acquisition will open up marketing and distribution networks for South-East Europe. 3) Havells India Completes $300mn Acquisition of SLI Sylvania Company to be renamed Havells Sylvania Havells India Ltd. has announced the completion of its overseas acquisition of SLI Sylvania, a leading global designer and provider of lighting systems for lamps and fixtures. Havells Netherlands BV, a Dutch subsidiary of Havells, will own 100% of the shares of the SLI Sylvania companies. With this transaction Havells has secured full control of the $594mn SLI Sylvania and rights* to its enviable portfolio of brands like Sylvania, Concord: Marlin, Luminance, Claude and LinoliteSylvania. The corporate name of SLI Sylvania group entities will change immediately to Havells Sylvania. This 68

landmark acquisition provides Havells with the opportunity not only to expand its product portfolio in the European, Latin American and other developed western markets but also to launch Havells Sylvania throughout India.

The Havells Sylvania headquarters is based in Frankfurt and the management team is continue intact under Havells, headed by Paul Griswold, CEO, and Mark Becker, COO and CFO. Havells had announced in March this year, that it would acquire SLI Sylvania for $300mn thus taking its revenues past the $1 bn mark. Integration activities are currently underway between both organizations, with a focus on global growth synergies.

The acquisition has been financed jointly by Barclays Bank, State Bank of India and Bank of India. This is the largest overseas acquisition by an Indian Electrical company. SLI Sylvania had reported 2006 revenues of US$594mn and a normalized EBIDTA of US$ 41.2mn. Sylvania is one of the most globally recognized brands for over a century in the electrical industry. SLI Sylvania has 10 manufacturing plants located across Europe, Latin America and Africa with employee strength of more than 4000. International Acquisition criteria of Havells Havells has been looking for the optimal acquisition opportunity for the last few years Criteria for acquisition laid out include a) Scale: Given required management bandwidth for integration, target should have adequate scale b) Brand: Well recognized brand with leading position in core markets

69

c) Markets: Key European markets and/or Emerging growth markets such as Latin America/Eastern Europe/ Africa d) Distribution : Strong distribution network with ability to add Havells product to the basket (Electrical distributors/ Installers)

e) Products: Segments where Havells has adequate domain knowledge and ability to synergize f) Management: Competent management team with a globalization view.

70