The document provides information about the Indian electrical equipment industry. It discusses key details such as:
- Asia-Pacific and Europe together account for over 70% of the global electrical equipment market due to strong economic growth in countries like India and China.
- China is the largest contributor to global electrical consumption, while India accounts for 7% and is forecasted to grow strongly.
- The Indian electrical equipment industry is dominated by the services sector, which contributes over 50% to GDP, while agriculture contributes 17%.
- Electricity production and consumption in India has grown steadily between 2013-2018 and is forecasted to reach over 1,900 TWh by 2022.
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havells presentation for b school student and management employee.
1. 2 Indian Electrical Equipment Industry Mission Plan 2012-2022
KUNAL PAL
PRN No. – DM18B26
PGDM-2
2. Electronic Equipment Sector
Emerged in the 20th century and has now become a global
industry worth billions of dollars.
The electronics sector produces electronic equipment for
Industries, consumer goods products(electronics).
The electronics manufacturing industry is primarily
concerned with interconnection technology.
3. 24%
27%
45%
4%
Global Electrical Equipment Market
Share
Americas Europe Asia Pacific Rest of the world
Asia-Pacific and Europe together account for more than 70% of
the global market-expected strongest demand due to economic
growth rates, Especially India & China.
Rising ecological concerns and investment-use alternative power
source such as wind turbines, solar power systems.
28%
21%
7%
6%
38%
Contribution-Worldwide Electric
Consumption by Region
China United States India Japan Rest of the World
China contribute most GDP(worldwide) in Electrical
Equipment sector.
India consumption 1160 Twh in financial year 17-
18 that is contribute 7% of world GDP.
Source- Indian Electrical and Electronics Manufacturers' Association
4. 17.32%
2.25%
24.31%
2.46%
53.66%
Sector-wise contribution of
GDP in India
Agriculture,forestry &
fishing
Mining & quarrying
Manufacturing and
Construction
Electricity, gas, water
supply & other utility
service
Services Sector
Agriculture currently it contributes only 17% of Indian GDP at
current prices. It is worth to mention that agriculture sector
provides jobs to around 53% population of India.
Tertiary sector or Services Sector is the backbone of the
Indian economy and contributing around 53% of the Indian
GDP.
Electricity and others utility service contribute 3% though
its play a major role in service and industry sector.
Source-IBEF and IEEMA
5. 912.1
967.2
1048.7
1107.8 1160.1 1201.5
0
200
400
600
800
1000
1200
1400
FY13 FY14 FY15 FY16 FY17 FY18
ELECTRICITY PRODUCTION IN INDIA
MARKET SIZE
REASON BEHIND THIS GROWTH
Rise in disposable income, easy access to credit and electrification
are likely to accelerate like air conditioners, washing machine, and
refrigerators.
100 per cent FDI allowed in electronic –hardware manufacturing
sectors under the automatic route.
consumer durables index has grown at 20 per cent CAGR between
2010-2017.
1174.07
1348.4
1894.7
0
500
1000
1500
2000
FY15 FY17 FY22
DEMAND FORECAST
DEMAND FORECAST
Growth in power consumption to 1894.70 TWH in 2022
Deen Dayal Upadhyay gream Jyoti Yojana-increasing with
the support schemes from Govt.
forecasting to attract investment worth Rs 11.56 trillion
between 2017-2022 in thermal, hydro, nuclear and
renewables segments.
6. Havells
Leading Global Electrical Company.
Embarking growth in challenging economic environment,
CAGR 13.5% over last five years
6,500 professionals across 91 branches and representative
offices in over 50 countries.
Translating into a FMEG with greater consumer focus to
FMCD & FMCG good.
7. 29%
20%
16%
10%
10%
14%
15%
Switch Gears(Domestic MCB) Switch Gear(Switches) Cables(Domestic)
Cables(industrial) Light(CFL) Light(Luminaries)
Consumer Durables
MARKET POSITION IN EACH CATEGORY WITH COMPETITORS
Switchgears - Domestic MCB Market Size - INR 20,000 million
Market share - 29% (16% in 2007) Peers – Legrand,
Schneider
Switchgears – Switches Market Size - INR 22,000 million
Market share - 20% (7% in 2007) Peers – Panasonic (Anchor),
Legrand.
Cable - Domestic Market Size - INR 80,000 million Market
share -16% (6% in 2007) Peers – Polycab, Finolex
Cable – Industrial Market Size - INR 120,000 million Market
share - 10% (6% in 2007) Peers – Polycab, KEI
Lighting & Fixtures- Total Market Size - INR 65,000 million
Market share - 14% Peer Position – Philips, Bajaj, Crompton,
Wipro.
Electrical Consumer Durable - Fans Market Size - INR 62,000
million Market share -15% Peer Position – Crompton, Usha,
Orient
Domestic Appliances Market Size - INR 65,000million- Market
share -15% Peer Position – Peer Position – Bajaj, Philips.
Source-Havells IND.com
9. Threats
Unorganized markets
Delays in execution of power projects
Intense competition in the sector
Opportunities
Globally emerging markets
Acquisition of Chinese firms for low cost manufacturing
Vertical integration into Havells retail outlets
Weaknesses
High Debt ratio
Globally small market share
Slowdown of real estate
Strengths
Strong global distribution network
Global presence with many diverse product lines in 50
different countries
First FMEG Company to offer door step service
Great investments in fast-growing emerging countries
MARKETING91.COM
10. Threats of New Entrants-High
Supplier Bargaining Power-Low
Rivalry/Competition-Among Existing Firms-Medium
Buyers Bargaining Power-Low
Threats of Substitute Products-Low
Segmentation Havells accessories, coral modular switch, oro
modular switch, oro metallic switch, Fabio
modular.
Targeting Construction companies, Distributors, dealers and
builders and retails
Positioning A quality provider of powerful, sustainable, durable
and variant of color
11. BCG matrix and PLC
0
5
10
15
20
25
30
INTRODUCTION GROWTH MATURITY DECLINE
Product Life cycle Production Cost
In introduction stage production cost was higher than sales.
In growth stage sale increased but not so much so profit showing
is a certain level.
In maturity stage, where the product is now belong, sales
increased at higher rate and production cost also increased due to
improvement quality and some R & D.
Question mark
Consumer
Durables
Stars
switchgear
Dogs
Light(CFL)
Cash Cows
Cable
13. HAVELLS IND INCOME STATEMENT
Operating income during the year increased 32.3% on a
year.
Depreciation charges and finance costs increased by
16.6% and 86.1%, respectively.
Other income declined by 14.7%.
Net profit for the year grew by 39.7%.
Net profit margins during the year grew from 7.7% in
FY17 to 8.1% in FY18
Mar-17 Mar-18 % Change
Net Sales(million) 61,558 81,464 32.30%
Other income(million) 1,381 1,179 -14.70%
Total Revenues(million) 62,939 82,643 31.30%
Gross profit(million) 8,182 10,434 27.50%
Depreciation(million) 1,205 1,405 16.60%
Interest(million) 133 248 86.10%
Profit before tax(million) 8,225 9,960 21.10%
Tax(million) 2,288 3,038 32.80%
Profit after tax(million) 4,822 6,735 39.70%
Gross profit margin(%) 13.3 12.8
Effective tax rate(%) 27.8 30.5
Net profit margin(%) 7.7 8.1
Source-Havells annual report 17-18
14. HAVELLS IND BALANCE-SHEET 2017-18
17-Mar Mar-18 % Change
Net worth(million) 32,768 37,292 13.8
Current
Liabilities(million)
15,752 25,300 60.6
Long-term
Debt(million)
0 810 0
Total
Liabilities(million)
51,693 66,075 27.8
Current assets(million) 32,344 36,896 14.1
Fixed Assets(million) 12,665 13,319 5.2
Total Assets(million) 51,693 66,075 27.8
The company's current liabilities during FY18 stood at Rs
25 billion as compared to Rs 16 billion in FY17, thereby
witnessing an increase of 60.6%.
Current assets rose 14% and stood at Rs 37 billion, while
fixed assets rose 5% and stood at Rs 13 billion in FY18.
Overall, the total assets and liabilities for FY18 stood at
Rs 66 billion as against Rs 52 billion during FY17,
thereby witnessing a growth of 28%.
Source-Havells annual report 17-18
15. HAVELLS IND CASHFLOW STATEMENT 2017-18
Particular 31-Mar-17 31-Mar-18 % Change
Cash Flow from Operating
Activities (Million)
7,671 10,999 43.40%
Cash Flow from Investing
Activities (Million)
-2,160 -9,441 -
Cash Flow from Financing
Activities (Million)
-975 -4,091 -
Net Cash Flow (Million) 4,499 -2,554 -
HAVELLS IND's cash flow from operating activities (CFO)
during FY18 stood at Rs 11 billion, an improvement of 43.4%.
Cash flow from investing activities (CFI) during FY18 stood at
Rs -9 billion, an improvement of 337.1%.
Cash flow from financial activities (CFF) during FY18 stood at
Rs -4 billion.
Overall, net cash flows for the company during FY18 stood at Rs
-3 billion from the Rs 4 billion net cash flows seen during FY17.
Source-Havells annual report 17-18
16. 31-Mar-17 31-Mar-18
Current ratio 2.1 1.5
Debtors (Days) 14 15
Interest coverage 62.7 41.1
Debt to equity ratio 0 0
Return on assets(%) 9.6 10.6
Return on equity(%) 14.7 18.1
Return on capital
employed(%)
22.1 26.3
Current Ratio:
The company's current ratio improved and stood at 1.5x during FY18, from
2.1x during FY17. The current ratio measures the company's ability to pay
short-term and long-term obligations.
Interest Coverage Ratio:
The company's interest coverage ratio deteriorated and stood at 41.1x during
FY18, from 62.7x during FY17. The interest coverage ratio of a company states
how easily a company can pay its interest expense on outstanding debt. A
higher ratio is preferable.
RETURN ON EQUITY(ROE):
The ROE for the company improved and stood at 18.1% during FY18, from 14.7% during FY18. The ROE measures the ability of a firm to generate
profits from its shareholder’s capital in the company.
Return on Capital Employed (ROCE):
The ROCE for the company improved and stood at 26.3% during FY18, from 22.1% during FY17. The ROCE measures the ability of a firm to generate
profits from its total capital (shareholder capital plus debt capital) employed in the company.
Return On Assets(ROA):
The ROA of the company improved and stood at 10.6% during FY18, from 9.6% during FY17. The ROA measures how efficiently the company uses its
assets to generate earnings
Source-Havells annual report 17-18
18. JD and JS
Sales:
Achieving Month / Year wise sales target, Planning month wise sales plan, Forecasting and implementation of sales plan and
objectives.
Managing primary and secondary sales in entire allotted area
Marketing: Planning & implementing activities. Executing these activities to achieve the market share objective.
Channel Management: Managing Exclusive Direct Dealers & Distributor in terms of Primary & secondary, schemes, and
consumer offers. (Meeting existing Dealers / Distributors on a regular basis for achieving service standards)
Salary: Not Disclosed by Recruiter
Industry :Electrical /switchgear
Functional Area: Sales, Retail
Role Category: Retail Sales
Role: Area Sales Manager
Employment Type: Permanent Job, Full Time
KEYSKILL: Area Sales Manager, Channel Sales Management,
Marketing Planning, Market Expansion, Sales Planning,
Distributing, Target Planning.
Desired Candidate Profile
The candidate should have 4-6 years of experience in channel sales of
Electrical products
Max age - 30 Years.
Education-
UG: Any Graduate - Any Specialization
PG: MBA/PGDM - Any Specialization Source-monster.com
Company Profile-Havells India Limited
19. ORGANIZATIONAL CULTURE
Good salary, fast growing powerful management.
Good Place to learn, working culture and management is
supporting, they pay good salary as compared to the industry.
Enjoys a widespread brand value, Chance to be exposed to
several product verticals.
Constantly growing company, Pretty good salary increment
(boasts of highest increment in industry).
PROS: CONS:
There is a considerable disparity between thoughts and actions
between HO and some plants.
The "Indian way of doing things" harms the company at ground
level of plant operations.
Hires below class people at some plants for important posts in
ground level operations.
Somehow management is not properly able to get its thoughts
and actions implemented.
Source-Glassdoor.com
