MAIN BODY

Organizational study on Havells India Ltd

CHAPTER-1

INTRODUCTION

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SRM School of Management


INTRODUCTION

An organization is a social arrangement which pursues collective goals, controls

its own performance, and has a boundary separating it from its environment. The word

itself is derived from the Greek word organon, itself derived from the better-known

word ergon. Organizational structure is a mainly hierarchical concept of subordination

of entities that collaborate and contribute to serve one common aim.

Organizations are a variant of clustered entities. An organization can be structured

in many different ways and styles, depending on their objectives and ambience. The

structure of an organization will determine the modes in which it operates and performs.

Havells India Ltd is an electronic equipment company which is a subsidiary and

flag ship company of QRG group, a billion dollar plus organization. QRG group is one of

the fastest growing Electrical and power distribution equipment company in the

country, manufacturing products ranging from Building Circuit Protection , Industrial and

Domestic switchgear ,Cables and Wires, Fans, CFLs, Luminaries, Bath fittings and

Modular Switches.

The business today operates in a world of relentless and real-time change as they

approach the second decade of the 21st century. From shifts in the global climate to

evolving economic and demographic trends in the local communities, they live and work

in an environment that constantly challenges them to think a new about their customers,

communities and responsibilities as a company. They embrace these changes and their

accountability as a business starts with the customers, nearly 10,000 employees,

investors, regulators, partners and communities. It ultimately extends to everyone who

shares the interest in ensuring a clean, secure energy future from national policy makers

to industry peers at home and even overseas.

The business today operates in a world of relentless and real-time change as they

approach the second decade of the 21st century. From shifts in the global climate to

evolving economic and demographic trends in the local communities, they live and work

in an environment that constantly challenges them to think a new about their customers,

communities and responsibilities as a company.

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http://en.wikipedia.org/wiki/Business_cluster

http://en.wikipedia.org/wiki/Organizations

http://en.wikipedia.org/wiki/Hierarchical


They embrace these changes and their accountability as a business starts with the

customers, nearly 10,000 employees, investors, regulators, partners and communities. It

ultimately extends to everyone who shares the interest in ensuring a clean, secure energy

future from national policy makers to industry peers at home and even overseas.

1.1.1 OBJECTIVE OF THE STUDY

Primary Objective:-

The primary objective of the study is to have a practical knowledge about the

functioning of the organization.

Secondary Objectives:-

To understand the organization structure.

To study various functional areas of the organization

To understand the strategies used by the organization.

To understand how Maslow’s need hierarchical theory matches with practice.

To understand the duties and responsibilities of various department heads.

To identify the strengths, weakness, opportunities and threats of the organization.

1.1.2 NEED OF STUDY

The organization study has been conducted to get a practical knowledge about the

functioning of department and also to understand the organization structure. The other

important need of study was to check how Maslow’s need hierarchical theory matches

with practice.

1.1.3 DATA COLLECTION METHOD

There are broadly two types of data available to a researcher. They are:

(a) Primary data

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It refers to the first hand information collected by the researcher, specific to the

research problem. It includes using different primary data collection tools such as

personal interview using questionnaires, telephone surveys, mail surveys etc. For

the present study, primary data was collected by survey method using

questionnaires.

(b) Secondary data It is the information that already exists for another purpose. This refers to all

those data which are collected for some earlier research work. The secondary data

for this work was obtained form company profile, company magazines, website,

newspapers, internet, text books, reports and form company brochures and other

promotional materials.

1.1.4 PERIOD OF STUDY

This study has been conducted at Havells India Ltd, during the period 11May

2012 to June 30th 2012

1.1.5 SCOPE OF STUDY

The study is confined to gain some knowledge about the culture and structure of

the organization and the functions of departments of Havells India Ltd, Ernakulam.

1.1.6 LIMITATIONS

The main constraints or limitations for the study were:

Limited time available for the study.

Authorities of all the departments had a busy schedule and hence there

was no scope for detailed interviews or interaction with them.

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INDUSTRIAL PROFILE

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ELECTRICAL INDUSTRY

1.2 WORLD SCENARIO

Nature and characteristics of the Industry

The worldwide electric power industry provides a vital service to modern life. It

provides the nation with the most prevalent energy form known in history—electricity. It

advances the nation’s economic growth and productivity; promotes business development

and expansion; and provides solid employment opportunities to workers globally in

general and India in particular. It is a robust industry that contributes to the progress and

prosperity of our nation. Today the electric power industry operates in a hybrid model of

competition and regulation. The worldwide electrical and electronics industry is growing

at a fast pace which consist of manufacturers, suppliers, dealers, retailers, electricians,

electronic equipment manufacturers.

Electrical industry has come out of the regulated and proprietary industry to de-

regulated, buoyant and competitive industry. Private companies entered the market and

opened stiff competition after privatization and liberalization which have taken place in

several countries. The liberalization of the electric industry showed the expansion and

development. Electricity has been one of the most promising and challenging industries

that have helped in shaping national economy.

Electricity industry has been segmented in three basic parts like manufacturing,

supply, and transmission, though transmission and distribution continue to be controlled

in order to balance supply and demand so that transmission stability can be preserved.

Because of liberalization, at retail level, choice of electricity providers has been

expanded; as a result, customers can take advantage through switching over to a retailer

who can offer electric power at lower price.

Uses of petrochemicals are paramount in electrical industry so as to improve

electrical manufacturing processes. The petrochemical industry mainly deals with

electrical equipments such as instruments required producing and distributing electricity.

These petrochemical products are vital for producing different electrical equipments as it

helps in insulation, prevention of loss of energy, and safety.

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Electrical components are found in different types of electrical devices and a

fundamental building block. Electrical components are connected with each other as well

as number of other devices. Electrical component either with the help of solders or

printed circuit board is connected to the electronic circuit board to perform different

function.

Electrical Components Types

Active electrical component

Passive electrical component

Active electrical component has gain or directionality.

Passive electrical component is without gain or directionality.

Further these electrical components are covered in synthetic resins for mechanical

stability. This also provides environmental protection as well as insulation.

1.2.1 INDIAN SCENARIO

The Indian Electrical industry is now finding a good response for its products in

the international markets. What has brought this about? The industry has invested in

upgrading technology and improvements in quality systems so that it is able to offer

products/systems contemporaneous to what the developed countries make at much lower

price.

Electricity has become an inseparable part of our daily life. In homes, offices,

industries and hospitals they are myriad systems, equipment and sophisticated appliances

that depend on electrical energy.

Electrical equipment such as motors, transformers, switchgears etc. is used by all

sectors of the Indian economy. Some major areas where these are used are the multi-core

projects for power generation including nuclear power stations, petrochemical

complexes, chemical plants, integrated steel plants, non-ferrous metal units etc.,

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Indian electrical industry

a. Prospects of the Indian Electric Industry

Like every other industrial sector in India, the Indian Electrical Industry too is

slowly emerging from out of its “protective cover”. Since the last decade, India has

witnessed what global players have achieved and what they are capable of achieving. We

are becoming aware of competition on our turf. Many organizations in this industry are

looking overseas to develop the export markets owing to reduced demand at home.

b. Future Prospects

The domestic market in India is itself large, and one must firstly satisfy this

market with products that meet international quality standards. With increasing

globalization, every international player is now operating in India, providing goods and

services complying with international quality. The Electrical Industry in India is growing

to its full potential in the coming years and no doubt India will soon come to be

recognized for quality products and services which in turn, will bring this industry to a

position of true leadership.

1.2.2 FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY

Research and development played an important role to the increased productivity

and higher-value added electrical products.

Foreign investments accelerated growth in production and export as well.

Global industries like medical, telecommunication, etc have been cordially

supported by electrical industry.

Increase in income changed living standards of the common mass. As a result, it

increased the demand of electronics.

Asia pacific region is emerging as the most spinning place for the consumer

electronics india

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COMPANY PROFILE

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1.3 INTRODUCTION

About the company

QRG Group, a billion-dollar-plus group which ranks among the top electric

product conglomerates in the worlds and is a major domestic and global player in the

production and sales of an impressive range of electrical products. The group comprises

of 4 companies—Havells India Ltd (the flagship company with Havells and Crabtree

Brands), Standard Electricals Ltd, Havells-Sylvania and QRG Healthcare.

The flagship company, Havells is acknowledged as a manufacturer & supplier of

the widest range of low voltage electrical equipment and has become a name

synonymous with excellence and expertise in the industry.

Driven by a philosophy of dreaming big, empowering team members, a culture

based on transparency, honesty, a high focus on ethical values and entrepreneurship at

every level, the QRG Group of today is literally a dream come true-a world class

company which is one of the most admired organizations in India. With a number of

strategic alliances in place, QRG Group has shown phenomenal growth rate with the

help of various joint ventures, acquisitions, mergers and takeovers. The group, catering

to the needs of residential and industrial market globally, has 10 manufacturing units in

India.

Following its philosophy of “thinking big”, the group’s product basket offers

end-to-end electrical solutions. The company manufactures a wide range of high quality

electrical products suitable for domestic and industrial use.

QRG’s International Business Division (IBD) is a dynamic team of professionals

who are committed to fulfill the aspirations of the organization in the international

markets. IBD caters its international clientele spread over 51 countries with offices in

Dubai, China, Nigeria and distribution networks in all major countries.

Innovation is the hallmark of every vital development at QRG. New ideas,

inventions deepen scientific knowledge and give its workforce a new impetus towards

technical progress. The responsibility of providing its customers the best products and

zero defect services to enable them to be comfortable and secure in usage of electricity.

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The group comprises of 4 companies:

Havells India Limited

Havells Sylvania

CRABTREE

Standard Electricals

1.3.1 Havells India Ltd

Havells India Ltd is a billion-dollar-plus organization, and is one of the largest &

India’s fastest growing electrical and power distribution equipment manufacturer with

products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables &

Wires, Motors, Fans, Power Capacitors, CFL Lamps, Luminaries for Domestic,

Commercial & Industrial applications, Modular Switches, Water Heaters and Domestic

Appliances covering the entire gamut of household, commercial and industrial electrical

needs. Havells owns some of the prestigious global brands like Crabtree, Sylvania,

Concord, Luminance, and Linotile & Standard.

With 94 branches / representative offices and over 5000 professionals in over 50

countries across the globe, the group has achieved rapid success in the past few years. Its

12 state-of-the-art manufacturing units in India located at Haridwar, Baddi, Noida,

Faridabad, Alwar, Neemrana, and 6 state-of-the-art manufacturing plants located across

Europe, Latin America & Africa churn out globally acclaimed products. Havells is a

name synonymous with excellence and expertise in the electrical industry. Its 20000

strong global distribution network is prompt to service customers.

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 have emerged as the preferred choice of electrical products for discerning

individuals and industrial consumers both in India and abroad.

In an attempt to transform itself from an industrial product company to a

consumer products company, Havells launched the consumer electrical products such as

CFLs, Fans, Modular Switches Luminaries, Water Heaters and Domestic Appliances.

The company has been consistent in its brand promotion with sponsorship of Cricket

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events like T20 World Cup, India-Australia Series and IPL Season first, second, third and

fourth.

The company has also taken the initiative to reach directly to the consumers

through “Havells Galaxy” – a one stop shop for all electrical and lighting needs. Havells

has more than 100 such Galaxies across the country.

1.3.2 Some of the ‘Firsts’ from Havells

• Sets up India`s First New Generation CMH Lamp Plant at Neemrana in the year 2010

• Launched India`s 1st HPF CFL in the year 2009

• Havells launched India`s 1st BEE 5* Rated Fan in the year 2009

• First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction

of Hazardous Substances in CFLs in the year 2008

• First Company to get the ISI Certification for complete range of CFLs in the year 2006

• Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG

the only group to attain this certification in the year 2005

1.3.3 VISION

"To be a globally recognized corporation that provides best electrical & lighting

solutions, delivered by best-in-class people”

1.3.4MISSION

“To achieve our vision through fairness, business ethics, global reach,

technological expertise, building long term relationships with all our associates,

customers, partners, and employees”

1.3.5 VALUES

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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.

1.3.6 QUALITY POLICY

We are committed to maximize customer satisfaction by

Dealing in world class electric products

Helping customers in arriving at the right choice

Providing quick product deliveries

Rendering prompt after sales services

Assuring closest customer interaction

Our work life is characterized by ongoing learning and training and is monitored

by a quality management system aimed at continual improvement in all processes.

1.3.7 QUALITY CONROL

The essence of quality is closely wrapped in the way we think, plan and work. It

finds its true expression when we extend beyond ourselves to exceed our

customer’s expectations. To deliver products those are safer, faster and simply

better.

Each time, Building customer confidence through teamwork is a top priority to

provide a wide variety of products and services.

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Realizing and respecting the basic needs of customers to feel more secure, we've

committed ourselves to make our products better, safer and smarter than what he

or she is looking for. That's a passion that began 30 years ago and that's how it

continues to be even today. Our customers rely on us and it is our responsibility to

give them the very best. All our products are as per IEC standards.

QRG has a simple rule on quality. If it doesn't exceed customer expectation, it's

not quality performance.

1.3.8 CORPORATE GOVERNANCE

The QRG Group defines 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. 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.

1.39 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.

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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.

1.3.10 Work Culture

QRG Group is continuously applying modern management techniques such as

Kaizen to enable employees to improve their day to day functioning in small steps, one at

a time. QRG has also implemented Japanese version of 5S which stands for an “a place

for everything and everything in its place”. The company has introduced these techniques

as it firmly believes the small changes add up to large results and the only way for a

corporation to grow, is to make its people grow.

The Group is driven by qualified and experienced professionals backed by a work

force of over 8000 employees. All branches and manufacturing facilities are

computerized and networked with each other. An open door policy at all levels

encourages employees to be participative, innovative and creative. Empowering

employees helps the organization in harnessing individual talents to the fullest. Emphasis

is laid on building team spirit which helps employees to realize collective potential.

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1.3.11 MILESTONES IN QRG GROUP

1958: Commenced trading operations in Delhi.

1971: Bought HAVELLS Brand.

1976: Set up the first manufacturing plant for Rewire able Switches and

Changeover Switches at Kirti Nagar, Delhi.

1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi.

1980: Started manufacturing high quality Energy Meters at Tilak Nagar,Delhi.

1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with Geyer,

Germany.

1990: Set up a manufacturing plant at Sahibabad, UP for Changeover switches.

1996: Acquired a manufacturing plant at Alwar, Rajasthan for power cables and

wires.

1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing

customized packaged solutions.

2001: Acquired business of Havells Industries Ltd, MCCB of Crabtree India

Limited and merged ECS Limited in the company to consolidate its area of core

competence.

2002: Standard Electrical Company becomes a 100% Subsidiary of the company

Attained the IEC certification for Industrial switchgear and CSA certification for

all manufacturing plants.

2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of switch

gear. Set up a manufacturing plant for manufacturing of CFL at existing

manufacturing plant in Faridabad, Haryana.

2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida.

2005: Set up manufacturing plant in Haridwar, for manufacturing fans.

Awarded the KEMA certification by The Dutch Council for Accreditation,

making QRG the only group to attain this certification.

Set up of Research & Development Center in Noida H.O.

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2006: Crabtree India merged with Havells India.

Added CFL production unit in Haridwar manufacturing plant.

Expansion at Alwar manufacturing plant for increase of production control.

Expansion at Baddi manufacturing plant and set-up of an Export Oriented unit.

.2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of

6, 00,000 KVAr per month. Acquired the lighting business of a Frankfurt based

company "Sylvania", a global leader in lighting business and now the company's

turnover crosses US$ 1 Billion.

2008:First Indian CFL manufacturers to have adopted ROHS, European norms on

Restriction of Hazardous Substances in CFLs. Set up of Global Corporate office,

QRG Towers at Expressway Noida. Investment of Rs.50 Cores in Global Center

for Research and Innovation (CRI)Set up of fully automatic plant for Havells

Lafert Motors at Neemrana.

Change in Corporate brand identity.

2009: Global consolidation of CFL manufacturing plant at Neemrana for domestic

and export purposes.

Launch of India’s first HPF CFL.

Launch of India’s 1st BEE 5 Star Rated Fan.

2010: Launch of Havells brand in US and Mexico.

Inauguration of fan manufacturing unit 2 at Haridwar.

Acquired 100% result in Standard Electrical.

Set up World’s First New Generation CHM Lamp Plant at Neemrana.

Enter into Electric Water Heaters Business.

2011: Launch of new range of Control Gear Cosmic Star series.

Set up of new Industrial Switchgear Plant in Sahibabad.

Launch of Domestic Appliances.

Standard Electrical merged with Havells.

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http://en.wikipedia.org/wiki/File:Brand_Change.JPG


PRODUCT PROFILE

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1.4 PRODUCTS

Products are like windows which will expose the company to the outer world.

Each company produces unique product. In the case of Havells which is an electrical and

power distribution equipment manufacturer, its products ranging from Industrial &

Domestic Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water

Heater, Havells Modular Switches, Crabtree and Standard Electrical Products.

Building Circuit Protection

Havells India Ltd has emerged as preferred choice for discerning range of individual

and industrial consumers. Havells is the largest manufacturer of MCBs in the country and

30% of the MCBs sold in UK are Havells manufactured. The products are approved by

international quality bodies such as KEMA, UL, CSA and are as per IEC standards.

Miniature Circuit Breaker (MCB)

Isolator

Changeover Switch

Residual Current Circuit Breaker (RCCB)

RCBO

Distribution Board (DB)

Indicator Light

Automatic change over with current limiter (ACCL)

Industrial Circuit Protection

Havells India Limited is leading manufacturer of low voltage Industrial products for

Three Phase and Single Phase power distribution, switching control and protection

requirements.

Panel Board system

Changeover Switch19



By-pass Changeover Switch

Load Changeover Switch

Automatic Transfer Switch

Switch Disconnector

Load Changeover Switch

Automatic Transfer Switch

Switch Disconnector

Control Gear

Switch Disconnector Fuse

Fuse Switch and Switch Fuse

Chamber System

Fuse Holder

Nylon Fuse Base

Fuse Link and Fuse Base

Motors

Havells is manufacturing three phase LV Motors at Neemrara (Rajasthan).The

motors are manufactured with technical collaboration with Lafert who are now the

owners of AEG Electric Motors. The plant has a capacity to manufacture over 300000

nos. energy efficient motors per year. The complete ranges of motors are manufactured

in- house and the plant and machinery has been procured from AEG Electric Motors.

Foot Mounting

Flange Motor

Foot Cum Flange

Inverter Duty Motors with Forced Cooling

Crane Duty Motors

Brake Motors

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Capacitors

Havells capacitors are designed and manufactured using S3 technology. It

encompasses product with triple shield with differential disconnector. Advanced

technologies adopted in the capacitors offer unmatched safety and outstanding

performance under Indian conditions.

Normal Duty

Heavy Duty

Super Heavy Duty

Agriculture Duty

Motor Run Capacitors

CFL

The company feels proud and privileged to share with you one fine innovation of

making Havells CFLs more environment friendly by introducing India’s first Green CFL,

manufactured using Pill Dosing Technology(PDT). Havells is the largest exporter of

Lilliput CFL under brand name Havells Sylvania and has been awarded the best CFL in

Sweden & France.

Retrofit

Non Retrofit

Higher Range

Liliput

FPL

Modular Plate Switches

Havells Switches are aesthetically designed modular plate switched that are

engineered to deliver protection and built to last. They are an architect’s invention while

keeping an Italian flair in his mind. They are one of the best modular switches available

in India, both aesthetically and technically

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Havells Modular Switches

Crabtree Modular Switches

Lighting

Havells owns a wide range of energy efficient luminaries for domestic and

decorative applications .Lighting is important and the quality of light affects every walk

of modern life. A better understanding of light will enable you to use it more effectively.

LED Lighting

Consumer Lighting

Commercial Lighting

Down Lighter

Landscape – Bunker Lighting

Industrial Lighting

Area Lighting

Road Lighting

Specialty Lamps

Accessories

Aura Lighting

Fans

Havells entered fan business in mid-2003 and has emerged as one of the fastest

growing brand in the market. From premium fans in exquisite antique finishes to fans

specially designed for kids to dual color fans and super speed fans. Ceiling Fans

Table Fans

Wall Mounting Fans

Air Circulator Fans

Ventilating Fans

Pedestal Fans

Cables & Wires

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Set up in the year 1996, Havells Cables plant (an ISO: 9000-2000 certified unit) is

located in Alwar, in the state of Rajasthan. All cables and wires are manufactured on

most modern laser controlled automatic machines, using best raw material from primary

manufacturers ensuring perfect quality.

Power Cables – Aluminium

Control Cables – Copper

Copper Flexible Cables

Latest Innovation

A pioneer in the switch industry, Crabtree introduces its latest innovation in

wiring solutions, ‘I-sense’. An intelligent switching system equipped with an IR remote,

I-sense is a combination of sophisticated design and advanced mechanism. Crabtree does

not create, it innovates.

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MANAGEMENT PROFILE

1.5 CHAIRMANS PROFILE

The group's phenomenal success over the years has been due to Mr. Qimat Rai

Gupta's mantra of "growth through quality, innovation and market consolidation". His

focus on research and development has enabled the group to develop products for

consumers that offer great value for money. His constant emphasis on promoting energy

conservation and environmental preservation coupled with his philanthropic service to 24



the economically weaker section of the society is his way of giving back in return to the

society that has helped this organization realize its true potential.

Mr. Gupta has held various responsible positions in Trade and Commercial

associations of the Industry from time to time. He has, in his past, served as the President

of Federation of All India Electrical and Trade association. Mr.Qimat Rai Gupta has been

recognized by various sections of the industry for his path breaking work in this segment.

Amongst the acknowledgments bestowed upon him, Mr.Gupta received the Self-made

Entrepreneur Award "Udyog Patra" in 1989, Distinguished Entrepreneurship Award

2004, from the PHD Chamber of Commerce and Industry in 2004, Udyog Vibhushan

from the Institute of Trade & Industrial Development, Delhi in 2005 and Udyog Ratna

from PHD Chamber of Commerce & Industry for Economic Contribution to Uttaranchal

State in 2005.

1.5.1 BOARD OF DIRECTORS

Mr. Qimat Rai Gupta (Chairman & Managing Director)

Mr. Anil Gupta (Joint Managing Director)

Mr. Surjit Gupta (Director)

Mr. Rajesh Gupta (Director Finance)

Mr. S.B.Mathur (Director)

Dr. Abid Hussain (Director)

Mr. A.P.Gandhi (Director)

Mr. Nitan Malhan (Director)

Maj.Gen.D.N. Khurana (Director)

Mr.V.K.Chopra (Director)

Company Secretary : Sanjay Johri

Auditors : M/s V.P Bansal & Co. Chartered Accountants

Bankers : Canara Bank, IDBI Bank, State Bank of India,

Corporation bank, Yes Bank

Registers and Transfer Agents : MCS Limited (Havells India Ltd)

Listed on : The National stock Exchnage of India Ltd,

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The Bombay Stock Exchange Ltd Corporate office : QRG Towers, Noida

1.5.2 CERTIFICATIONS

The Company has acquired a number of international certifications, like BASEC,

CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), and EDD (Bahrain)

for its various products to expand its reach in international arena.

1.5.3 MANAGEMENT SUMMARY

Successful turnaround of Sylvania, the international subsidiary acquired in 2007,

has shown the ability of your management of getting the things in shape. The last two

years bring challenging environment through global recession. They successfully

implemented major restructuring plans in Europe and Latin America, rounding out our

transformation into a customer focused, agile, profitable, market driven health and well

being company. They have moved their European headquarters to London so as to build

our business on the more global platform. Havells has made good progress during

financial year 2010-11. Their business model is based on the consumer and dealer

relationship which has contributed immensely to the financial performance. A structural

change is clearly visible in the Indian consumer favoring quality products with strong

brand. Keeping with the times Havells has emerged as a premium quality & diversified

product Portfolio Company with strong brand leadership and reliable distribution

channel.

1.5.4 Communication process at Havells India Ltd

Communication network of the company is same as the organizational chart. The

flow of information is from top level to the bottom level. In German Motors the

management follows the traditional hierarchal communication pattern, wherein if a

worker needs to communicate to the manager, he has to follow his hierarchal path. But at

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the same time the manager has opened his doors whereby anyone can walk in to

communicate with him

Downward Communication

Downward communication in Havells India Ltd moves from the top to the

bottom authority. Downward channels are used for passing on managerial decisions,

policies and programmers to subordinates down the line of their understanding and

implication.

Top management communicate with the lower levels through Circulars, meetings,

seminars, monthly conferences, mails.etc

Upward Communication

Upward communication in the company is when it flows from the

subordinates to top management. Upward communication is used by subordinates for

transmitting information, ideas, views and request to their superiors on relating to

their jobs, responsibilities etc.

Workers communicate with superiors through regular mails, telephones, meetings etc

Horizontal Communication

Horizontal communication at HIL is when the workers of the same position

communicate each other. It is mainly done through telephone, through mails and

direct interaction.

1.5.5 CORPORATE SOCIAL RESPONSIBILITY

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While it acquires companies and builds internally, QRG Group never loses sight

of its responsibility as a good corporate citizen. Shri Qimat Rai Gupta, believes that

serving people with meager or no means is the duty of every well-to-do person.

For instance, the company is providing mid-day meals to around 350 government

schools in Alwar district, covering 30000 students per day. Havells has a spacious

kitchen with modern kitchen equipment and utmost care is taken in terms of hygiene

while preparing and serving food. This has greatly increased the number of children

attending school regularly and also alleviates hunger. Besides this the 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.

Havells runs a mobile Medical Van, equipped with a trained doctor and necessary

medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. The

company also set up free medical check-up camps. In the past also, the company has

generously contributed to the society during various national calamities like the Bihar

Flood, Tsunami and Kargil National Relief Fund etc.

Corporate Social Responsibility (CSR) at QRG portrays the deep symbiotic

relationship that the group enjoys with the communities it is engaged with. As a

responsible corporate citizen, we try to contribute for social and environmental causes on

a regular basis.

1.6 ORGANISATION STRUCTURE OF HAVELLS INDIA LTD

28



29


11

DIRECTOR

OPERATIONS/ PRODUCTIONS HUMAN RESOURCE FINANCEMARKETING

PRESIDENT

VICE PRESIDENT

PRESIDENT

VICE PRESIDENT

GENERAL MANGER

Asst. GENERAL MANAGER

COMMERCIAL & ADMINISTRATION

HEAD


HEADPRESIDENT

Asst. GENERAL MANGER

BRANCH MANAGER

SALES MANAGER

Asst. SALES MANGER

OFFICERS EXECUTIVE

JOINT MD

GENERAL MANAGER

EXECUTIVES

VICE PRESIDENT

12


30


COMMERCIAL ADMINISTRATION

MANUFACTURING HEAD

PURCHASE HEAD

CLERICAL STAFF ENGINEERSENGINEERS

SUPERVISORSCLERICAL

STAFF

WORKERS

ACCOUNTS COMMERCIAL C&FRECEIVABLE

CLERICAL STAFFCLERICAL STAFF

SALES

Sales

PURCHASE

CREDIT CONTROL DEPARTMENT

21


CHAPTER-2

FUNCTIONAL DEPARTMENTS

2.1 OPERATIONS / PRODUCTION DEPARTMENT

31



OPERATING HIERARCHY

Plant Locations

Haridwar

32


V.P

GENERAL MANAGER

WORKERS

SUPERVISORS

PURCHASE HEAD

CLERICAL STAFF

COMMERCIAL ADMINISTRATIO

N HEAD

ENGINEERSENGINEERS

MANUFACTURING HEAD

CLERICAL STAFF


Baddi

Noida

Faridabad

Bhiwadi

Alwar

Neemrana

Manufacturing Plants

An integral part of the Havells umbrella, Havells switchgear is a leading name in

the circuit protection devices in India. Catering to the needs of discerning customers, the

company is the largest manufacturer of MCBs in the country and amongst the top 10 in

the world.

Manufacturing units have complete in- house facilities equipped with state of the

art machines for conducting short circuit tests and mechanical tests. Manufacturing units

are ISO 9001-2000 certified & products boast of quality certifications from various

international quality bodies such as UL, CE, KEMA and VDE as per IEC standards for

taking protection to a new level.

Havells cables manufacturing plant located in Alwar, Rajasthan is a BASEC

approved cable plant is the largest cable manufacturing unit in India. At Haridwar

Havells has set up India’s largest integrated fan manufacturing facility, with production

capacity of four lakh fans per month. Motor & CFL manufacturing plant at Neemrana has

an installed capacity to produce around 20000 units per month making it the largest

motor manufacturing unit the country. 50% of the motor production in this plant is to

export to European countries finding applications in various sectors. Havells is the

second largest manufacturer of CFLs in the domestic market and the first manufacturer in

India to make ROHS compliant eco- friendly CFLs.

Production Planning & Scheduling

33



In Havells production is mainly based on its monthly sales, plans and the budgets.

Havells has its own warehouses in all its plants and also in its branch offices . In Kochi,

Havells has a warehouse at Willington Island.

Products manufactured in each plant

Switchgears – Baddi (H.P)

Wire & Cables – Alwar ( Rajasthan)

Industrial Switchgear – Faridabad (Haryana)

Capacitor – Noida (U.P)

Fan – Haridwar

CFL & Motor – Neemrana

2.2 HUMAN RESOURCE DEPARTMENT

34



HUMAN RESOURCE HEIRARCHY

The Human Resource department in Havells India Ltd is headed by the V.P –

Human resource. Havells considers its human resource as a valuable tool with emphasis

on enhancing their productive capacity.

Human resource covers everything from wellness, safety and benefits of

employees to their administration, motivation and communication. Nearly 8000

Professionals are employed in Havells India Ltd (HIL) in over 50 countries across the

globe. The total employee strength of HIL, kochi branch is 75.

Functions of Human Resource Department

35


V.P

GENERAL MANAGER

Asst. GENERAL MANAGERS


HEAD

EXECUTIVES


Recruitment and Selection

Training and Development

Performance Appraisal

Compensation

Grievance Handling

Employee Safety

Recruitment

In Havells India Ltd. recruitment is done through internal and external sources.

The internal source of recruitment is done by the company itself in form of direct

recruitment from colleges. In this case maximum 4 candidates are selected. The external

source of recruitment is done through consultancies

Selection Process

In case of selection of candidates for top level position, the applicants have to go

through interviews with the Directors. In case the selection is for the employee of

middle level management he or she will be interviewed by the department heads.

The candidates have to do a presentation before the heads after collecting the

relevant information about the products of the company.

The qualification should be an Engineer and MBA from premier business school.

While selection, preferences are given to candidates who have work experience in

any of company which deals with electrical equipment.

If recruitment is for any managerial position more importance is given to their

background, educational qualifications, talent, communication skill, experience

etc.

Training and Development

36



Once the candidates are selected, orientation and induction classes are given to

the candidates. Both On the Job and Off the Job training are given to the employees. Each

employee is given training as per the job requirement and it is given by the respected

branch itself.

Performance Appraisal

In Havells India Ltd the performance appraisal is being done on a yearly and half

yearly basis. A questionnaire is given to the employees and they have to fill it and return

it back. It’s a 3 level process and the employees are evaluated after completing all these

levels.

The employees are judged by their performance. Every department is assigned

with a target and the members in that department have to reach the target within the time

prescribed. If they achieve their targets then they are rewarded with the points and finally

these points are calculated to evaluate the performance of the employees and to provide

the incentives.

Employees Safety

A top priority of every employer should be to take the time and initiative to help

and protect their employees. If an employee becomes injured at work, the business may

suffer.

In Havells India Ltd. all employees are covered by insurance and also the

company has its mediclaim policy for its employees. Employees are provided with:

Sick Leave (15 days)

Earn Leave (15 days)

Compensation and Grievance Handling

37



In HIL the matters regarding compensation will be decided by the branches itself.

Compensations are provided after the enquiry. Havells repair or replace products at their

discretion, if the products are found to be defective, solely as a result of faulty material

and or workmanship, within 10 years from the date of purchase.

2.3 FINANCE DEPARTMENT

38



FINANCE HEIRARCHY

Fund management is crucial and important for the company’s growth. The

financial system of the organisation is responsible for the management of funds. A team

of senior management periodically review organisations funds requirement. The

company’s financial management has held it in good stead over the years

The finance department is headed by Administration head. Every branch is a

separate profit centre and maintains separate accounts. There are separate staffs for

accounting in each branch. The department prepares monthly performance report which

is sent to head office for analyzing the operational results. There will be a performance

review meeting every month to evaluate branch performance. The monthly report from

branches is consolidated at the head office to know the overall result of the company.

There are 3 levels of internal audit.

The branches are audited by staff from the head office.

There is internal audit by cluster accountants.

There is internal audit by external auditors.

39


COMMERCIAL & ADMINISTRATION HEAD

ACCOUNTS

COMMERCIALCREDIT CONTROL DEPT

C&F

SALES/PURCHASECLERICAL STAFFCLERICAL

STAFF


The internal audit observations are sent to the branches for seeking the clarification and

for rectification.

Sources of funds

Basically long term funds are required for creating financial assets and short term

funds are needed for working capital purpose.

There are various sources of funds. The primary one of the company is share

capital. It can be in the form of owners’ funds and funds from the public. For floating the

company, the promoters of the company invests funds in share capital and that is termed

as promoters funds. For meeting further requirement of funds are collected from the

public and shares are issued in lieu of that.

Havells India has issued 41, 60,000 Equity Shares to Sea crest Investment Ltd at

an issue price of Rs 625/- per share.

The next source of fund is borrowed fund. This can be by way of working capital

borrowing from banks. Deutsche Bank has provided various credit facilities to the

company for an amount equivalent to Euro 14 million.

Significant accounting policies of Havells India Ltd.

The financial statements have been prepared under the historical cost convention as a

going concern accrual basis in accordance with the generally accepted accounting

principles and as per the companies Act 1956

Fixed assets are accounted at cost of acquisition inclusive of inward freight duties, taxes,

and incidentals expenses related to acquisition and installation of the concerned assets.

Fixed assets are further adjusted by the amount of CENVAT credit availed.

Depreciation has been provided on Straight line method at the rate prescribed under

schedule X1V in the companies’ act 1956.

Inventories are valued on the basis of moving weighted average method.

Raw materials stores, spare parts and packaging materials are valued at lower of cost or

net realizable value.

Transaction in foreign currency is recorded at the exchange rate prevailing at the date of

transaction.

40



The revenue expenditure on Research and Development is charged as an expense in the

year in which it is occurred.

Current tax is determined as the amount of tax payable in respect of taxable income for

the period.

The main reports generated from the finance department are profit and loss

account and balance sheet. They are taken monthly and annually.

Havells India Ltd. installed SAP system software, which is designed to support

their complete business management. SAP is used in systems to handle invoice payment,

production resource management and financial account control. The main advantage of

using this software is that an employee in one branch can access the details of other

branches.SAP works in an ON / OFF mode. Customers can place their orders in

Customer Portal.

In HIL, Kochi branch SAP software is used for billing, cheque punching, entry of

cheque against bill, issue of credit/debit notes.

Payback period

Havells generally follows certain rules in payback period. If a dealer is new, then

he/she has to make an advance payment. But in case of existing dealers the payback

period is 45 days. If the customer pays the amount within 15 days then the company will

give 3% CD. If it is within 30 days then the CD rate is 2%. And the payment is made

after 45 days then no CD is provided.

41



2.4 SALES / MARKETING DEPARTMENT

MARKETING HEIRARCHY

For every sales oriented institution sales department has its own significant

role to play. As a sales oriented company this department is very important

department in Havells India Ltd. All other departments are directly or indirectly

depend upon the entire sales team.

The sales and marketing functions of Havells India Ltd are under the control

of General Manager (Sales and Marketing).

42


V.P

Asst. GENERAL MANAGER

BRANCH MANAGER

SALES MANAGER

EXECUTIVES&OFFICERS

Asst. SALES MANAGER


SALES OPERATIONS

The sales operation consists of the processes like marketing, procurement and

delivery. For marketing of a product a thorough knowledge of the market should be

known. For this purpose a market analysis should be done. Optimized method of

procurement and delivery helps in customer satisfaction, which in turn helps in their

retention. A satisfied customer is an asset to the organization, who will pass through a

process cycle of recommendation, revisit and repurchase.

Havells India Ltd. has pioneered itself in the manufacturing and exporting of

electrical products over the last 5 decades. The company has already established their

global presence across 5 continents and 50 countries with 91 branches and 8000

employees.

Deals in:

Domestic products

Industrial products

Fans

Wires

UG cables

Luminaries

CFL

Crabtree switches

Havells modular plate switches

Motors

Capacitors

New launches 2010

Geysers

43



MARKETING OPERATIONS

The company does not sell their products directly to customers, but through

dealers. Major marketing activities are concentrated towards big clients such as

institutions; hospitals etc, so that sales can be made in bulk. A normal customer can

purchase the company’s product from dealers of the products. A marketing team is

formed within the company within each branch so that specific targets are made and is

seen that maximum sales is accomplished. Every marketing executive is assigned with

monthly targets, which is the amount of sales that he must acquire within a period. For

that the executives contact the dealers and new clients. The Marketing Team is headed by

the Marketing/Sales manager of each branch. The manager sets out the target sales that

should be accomplished monthly in accordance with guidelines from the head-office.

Product Mix

Industrial products

Titania Air circuit Breaker

Load line molded case circuit breaker

Load line digital molded case circuit breaker

Load bank panel board system

Power line contractor

Domestic products

Euro breaker MCB

Euro breaker Mini MCB & isolator

Euro breaker RCBO

Euro breaker Isolator

Euro breaker changeover switch

44



Fans

Ceiling fans

Table fans

Wall mounting fans

Exhaust fans

Pedestal fan

Lighting

Commercial lighting

Down lighter

Consumer lighting

Area lighting

Road lighting

Industrial lighting

Land scape lighting

Lamps

Crabtree switches

Athena (dust free switches)

Ovation (designs for classic look)

Platinum (ideas for interior designers)

Sapphire (a boon for home owners)

Emerald (inspiration for architects)

SERENE (for silent moments)

Surrounds (elegance for every moment)

Stripes (classic lines, modern styles)

CASA (under floor box)

45



Havells modular plate switches

CORAL

One module cover plate with one way indicator switch

Three module cover plate with 6A3 pin socket &one way switch

Four module cover plate with universal socket & one way switches

PEARLZ

One module cover plate with one way switch

Three module cover plate with universal socket & one way switches

Two module cover plate with telephone socket & TV socket

DISTRIBUTION BOARDS (DBs)

Designer DBs (suitable for surface & flush mounting)

Single pole & neutral(suitable for single phase supply)

Three pole & neutral(suitable for single phase & three phase)

Special phase(suitable for three phase incoming supply)

MCB enclosure(plug & socket provide protection to A/C)

Branches

North

o Dehradun

o Delhi

o Haryana

o Noida

o Ludhiana

o Jammu

o Jaipur

o Kanpur

o Chandigarh

46



East

o Bhubaneshwar

o Guwahati

o Kolkata

o Siliguri

o Jamshedpur

o Patna

West

o Indore

o Rajkot

o Mumbai

o Nagpur

o Pune

o Rajpur

o Surat

South

o Bangalore

o Chennai

o Coimbatore

o Hyderabad

o Kochi

o Vishakapatnam

Clients

Electricians

House owners

47



Builders

Architects

Institutions (schools, colleges, hospitals)

Projects (hotels, offices, complexes)

Contractors

Electrical consultants

Interior designers

Havells has its own clients not only in terms of domestic market but also in

international markets such as Singapore, Malaysia, Iran, Bangladesh, Russia, Australia,

Greece, and Srilanka.

Competitors

Legrand

ABB

Finolex

Philips

Wipro

Bajaj

Khaitan

Crompton greaves

Seimens

PRICING STRATEGY

Pricing is an important strategic issue because it is related to product positioning.

Furthermore, pricing affects other marketing mix elements such as product features,

channel decisions and promotion.

The pricing strategy used in Havells India Ltd. is Product- based pricing. HIL sets

price based upon the quality of the product, purely not on the basis of competitive

48



products. Market conditions are also taken into consideration while setting the price for

the product.

PROMOTIONAL STRATEGY

The company has been promoting its brand through sponsorship of cricket events

like Champions Trophy, Champions League, IPL Season 2, IPL Season1, and T20 World

Cup. The company has also taken the initiative to reach directly to the consumers through

"Havells Galaxy" – a one stop shop for all electrical and lighting needs. This is yet

another initiative by Havells targeted at end-users, architects and Consultants, to

showcase Havells products. The Galaxy symbolizes Havells innovative leadership

position in the Electrical and Power Distribution equipment market. It serves to provide

an array of electrical appliances and consumer products, all created to adhere to the

demands of modern living. The products they offer combine the attributes of elegance,

technological advancement and convenience all in one. In order to promote the produvt

Havells India Ltd. Conduct seminars at corporate level, advertisements in televisions,

magazines, In-shop displays, dealers meeting, product catalogue.

49



CHAPTER-3

OBSERVATIONAL ANALYSIS

50



3.1 MASLOWS THEORY

From Maslow's theory of motivation, modern leaders and executive managers

find means of employee motivation for the purposes of employee and workforce

management.

The basis of Maslow's theory of motivation is that human beings are motivated by

unsatisfied needs, and that certain lower needs need to be satisfied before higher needs

can be addressed. Per the teachings of Abraham Maslow, there are general needs

(physiological, safety, love, and esteem) which have to be fulfilled before a person is able

to act unselfishly. These needs were dubbed "deficiency needs." While a person is

motivated to fulfill these basal desires, they continue to move toward growth, and

eventually self-actualization. The satisfaction of these needs is quite healthy. While

preventing their gratification makes us ill or act evilly.

Maslow's Hierarchy of Needs Chart

As a result, for adequate workplace motivation, it is important that leadership

understands which needs are active for individual employee motivation. In this regard,

Abraham Maslow's model indicates that basic, low-level needs such as physiological

requirements and safety must be satisfied before higher-level needs such as self-

fulfillment are pursued. As depicted in this hierarchical diagram, sometimes called

'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', when a need is satisfied it no

longer motivates and the next higher need takes its place.

51



3.2 SWOT Analysis

STRENGTHS

Expertise in the field since last four decades

Technology leadership

Excellent Brand Perception

Wide Dealer Network

Excellent after sales service

Value for money

Skilled Motivated Manpower

Wide product range

WEAKNESS

Huge amount spent for promotional activities

OPPORTUNITIES

Ever increasing demand for electrical equipment products due to boom in real

estate sector

The scope for opportunities is wide ranging in that a company will try to make

better use of finance, marketing and other resource based aspects of the business

work more smoothly and efficiently.

THREATS

Highly competitive industry

Large number of reputed players in the same field

High cost of raw material

Threats include where a company has a successful product on the market or

Product concept, then the threats would be that someone else would try to copy

that concept and market it at a similar or at a lower cost.

52



A slowdown of the World Economy coupled with Indian economy is quite

possible for the short term due to current global developments. Due to the strong

linkage of the manufacturing industry to the economy, such an event would

adversely impact growth in the short term for the company

3.3 Havells Strategy

Globalisation

Globalisation at Havells is a term for the horizontal and vertical integration of

manufacturing and trade on an international level. In addition to the expanding business

in India, Havells was looking to expand the geographical footprint. To remain

competitive in today's scenario of consolidation and to have sustainable development,

aggressive measures should be implemented to expand business. Starting business

internationally is as defensive as an offensive play. Changing slowly to economic

alterations in today's world could ultimately harm the business in long run.

Through international acquisition, Havells is vying for a reasonable share in the

high entry barrier markets of developed countries and is capturing buoyant growth

Prospects in the developing countries. The key strategy behind Sylvania acquisition was

to acquire a brand with global presence over last 100 years in the electrical space and to

get access to strong distribution network spread across Europe and Latin America. Also

globalization is necessitated due to competition with lowest cost producers across

geographies.

While modern trade is ushering in the 'global village', very significant national

differences remain in culture, consumer preferences, and business practices. Havells

strategy is to keep local preferences intact and to leverage on the key strength of each

cluster.

53



Growth in developing economies

A seismic change is visible in the world's economic geography led by the

developing economies of Asia, Latin America and Africa. The economic crisis may have

been debilitating for the rich world but for emerging markets it has been closer to a

triumph. Emerging economies now characterize younger population, increasing number

of well-qualified population, growing middle class, elevating incomes and urbanizations.

Havells is deriving 70% of its consolidated revenue from developing economies

like India and Thailand in Asia and Latin America. Leading brand presence and strong

distribution channel will lead to the profitable growth in these regions. In addition they

would be launching new products, aggressive market strategy and developing local

leadership in order to capture robust growth available in these economies.

Driving profitability is the key focus area in their operations at developed

countries of Europe. Restructuring of European operations by reducing fixed cost along

with operational efficiencies, re-strengthening of the brand and improved relationship

with customer would contrive improved performance.

Local management

Havells has an open environment which facilitate in building trust and motivation

in the employees. Employees are as enthusiastic about the business as the management.

They try to create a culture of participative management and ignite the creative endeavor

of employees. It involves making people an interested party to the strategic decisions,

thus aligning them to the business objectives.

They cultivate entrepreneurship skills at each level. Building long lasting and

customer focused strategic partnership is important for Havells as their business depends

on the ultimate growth of these channel partners. Human values, culture, ethics and

behavior of their employees with these partners are keys to their growth. Havells aims to

be close to its customers around the world by providing them local partnership for fast

and effective solution of the business needs. As a result of the 100 year presence of

54



Sylvania and over four decades of Havells we perceived as a local in the countries they

operate.

Diversity is a key feature of the Company. They promote collective decision

making at local level. In order to do so 'Strategic Business Unit' for each business

segments has been formed across all geographies. SBU is headed by a key strategic team

which takes collective decisions. Thus SBUs act as self contained planning units for

developing discrete business strategies, objectives and parameters. Because strategic

business units are more agile, they respond quickly to changing economic or market

situations at local level.

Unique business model

Havells business model is unique in India. They focus on the entire customer need

of low voltage electrical products by selling through same distribution channel. They

have aligned themselves horizontally by having large product basket. Thus their channel

management has become important and Havells enjoys paramount relationship with its

dealers for the past four decades. The strategic business model that they adopted and

implemented has certain features which place their business in a unique positioning in

India.

1. Brand building

Havells has created a strong brand in the electrical consumer products in India

which traditionally was a low involvement product category. They started investing in

brand promotional activities through large scale television advertisements in 2006 in

addition to other mode of advertisement like seminars, print media and local

advertisements. It was unheard at that time about any electrical company co-sponsoring

cricket mega events like T-20 world cup, Indian Premier League.

55



2. Premium positioning

Havells brand is associated with quality at par with the products of the global

leaders. As a strategy Havells entered into the premium category in each product while

leaving 'bottom of the pyramid' strategy.

3. Common distribution channel

Havells selling pattern is quite different from its peers in India. They sell their

entire product categories through same distribution channel targeting same consumer. As

a result they are more consumer focused-channel friendly company. They enjoy

unparalleled space with both the consumer and dealers in our industry.

4. Havells Galaxies

Breaking the conventional selling methods, Havells started 'Havells Galaxies' which are

one stop shops satisfying directly the entire electrical product need of the consumer.

Under franchisee model Havells Galaxies provide additional premium sale channel to its

existing channel partners.

Growth imperative

In financial year 2010-11 Havells extended their competitive advantage, while

investing in growth. Havells fortified their leadership and culture. Havells is a market-

driven company forming strategies based on the feedback from markets to capture growth

opportunities and to accelerate change while staying fast and productive. Growth is

considered as a process to achieve better returns to stakeholders. Growth imperative at

Havells means:

1. Lead in growth markets

In 2010-11 they grew exponentially in the markets where they lead in the product

segments and generated close to Rs. 4,000 cores revenue from Latin America, India and

Thailand. With a growth of 22% in financial year 2010-11, they continue to make long

term investments to drive growth across these geographies

56



2. Launch new products

They are committed to grow ahead of the competition. India, which is the key

market for their electrical consumer durables segment, new product range of Electrical

Water Heater was launched in September 2010. To leverage brand presence and

distribution strength in India the next plan is to launch small appliances. Sylvania's strong

brand and distribution channel in Europe & Latin America will be further leveraged by

launching low voltage switchgears.

3. Entering new countries

Sylvania is a 100 years old brand having visibility across five continents.

Capitalizing on the brand recall in other geographies than Europe and Latin America,

Sylvania will be re-launched in growing economies.

4. Investing in manufacturing capabilities

During the last five years Havells invested more than Rs.650 cores in India for

converting its manufacturing capabilities into world-class, state-of-the-art units. They

own largest facilities in terms of some of our product segments in India and amongst top

few in the world. As a manufacturing organization, they manufacture 85% of their

products in India and outsource only those products which are either not viable or cannot

be done.

5. 'Information Technology - a business enabler'

Havells innovative IT tools enabled the channel partners and business managers

to work ahead of competition. IT Applications has been deployed in India for basic

business functions of sales, purchase, production, planning, accounting, research,

development and designing through SAP, to implement best business practices with

maximum possible automation thereby increasing employees' efficiency & productivity.

57



CHAPTER - 4

FINDINGS, SUGGETIONS & CONCLUSION

58



FINDINGS

The company’s sources of funds are only from internal capital. No external funds

are

Made use of in financial operation.

Highly quality products and services its products ranging from Industrial &Domestic

Products, Cables and Wires, Motors, Fans, CFL Lamps, Lightings, Water Heater, Havells

Modular Switches, Crabtree and Standard Electrical Product.

There is good employee relationship in the company, Human resource covers everything

from wellness, safety and benefits of employees to their administration, motivation and

communication.

Committed employees 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 brand

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

the market.

Good working environment they are provided with all kinds of new office requirements

to make work more employee friendly.

As the company is following Maslow’s need hierarchical theory the company is able to

satisfy their employees needs.

59



No political interference in the functioning of the organization and good reputation.

SUGGESTIONS

The company has to aggressively recruit younger dynamic workforce to increase

the quality and visibility of the organization.

Increase geographical reach with more branches so that they can satisfy the

demand for their products in unreached markets.

Enhance promotional activities and increase ads to make their domestic

appliances more popular among the customers.

Conduct seminars and other programs within the organization.

Training program must be conducted for newly appointed employees.

Utilize modern technologies of organizational activities.

60



CONCLUSION

Right decision at right time itself helps an organization not only to run smoothly

but also effectively. But for making right decision it is very essential to understand

certain aspects relating to the problem. The aim of this study was to develop the

understanding of the growth and standing of the firm. It helped to understand

functioning of the various departments and was able to get a good idea about the

organization structure.

The study helped to understand the policies and strategies they followed and was

able to know the strength and weakness of the company Havells India Ltd. is the

pioneers and the most reputed and trusted name in electrical distribution products. The

organization study at Havells India Ltd had helped to know the various aspects in the

organisation. The study helped to get practical knowledge on various aspects of current

industrial scenario. The study helped to know the practical knowledge in the corporate.

This study was very valuable and informative for me as a management student. In all

sense the study in this organization was interesting and educative. This study was

valuable and informative for me as a major student.

61



APPENDIX

62



BIBLIOGRAPHY

Books

Company profile and company magazines of havells

Webs i t e

www.Have l l s . com

www.QRG Group . com

www.a l l e l e c t r i c a lp roduc t s . com/ ind i an -e l ec t r i c a l - i ndus t ry .h tml

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http://www.allelectricalproducts.com/indian-electrical-industry.html

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