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Havells begins selling Indian-made AC, cable and lighting products in the United States

Havells India has started selling air conditioners, cables and lighting products such as fixtures in the US. This makes Havells the first Indian electronics manufacturer to launch its own brand there, according to chairman and managing director Anil Rai Gupta.

Investment plans

This year, Havells plans to invest ₹1,000 crore to increase manufacturing capacity for cables, refrigerators, lighting and fans. The company is also considering the production of AC compressors. Last year, it invested around ₹700 crore in capital expenditure.

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Access to the US market

In the US, Havells sells air conditioners under the Lloyd brand through Lowe’s, the e-commerce platform of a home improvement retailer. The cables and fixtures are sold under the Havells brand.

Gupta said the company is setting up two joint ventures in the US with local distribution companies. Havells will own 75-90% of these companies. One joint venture will focus on sales and distribution of ACs, while the other will deal with fixtures.

“We want to build our brand in the US based on technology, not just price. Our team will spend the next two years developing products for the US market, which is growing,” said Gupta.

Set up in the USA

Havells has established its US base in New York and hired a local team for product development and customization to meet US standards. This is Havells’ first overseas market with its own base, despite exporting products worth almost US$80 million worldwide. Havells focuses on certified installers for air conditioning sales because American consumers need certified professionals to install air conditioners.

Market opportunities

Executive Director Rajiv Goel noted that ACs are covered by the US Inflation Reduction Act, which presents a long-term opportunity. He expects the US to contribute 35 to 40% of Havells’ total international business over the next four to five years.

Goel added: “The US market has a lot to teach us. The high-end Indian consumers have global aspirations, so our US experience can help us launch premium products in India.”

domestic market

In India, the Lloyd brand is a strong player in the AC market and is expanding into refrigerators, washing machines and televisions.

In the financial year 2023-2024, Havells India achieved a turnover of ₹18,550 crore, an increase of 10% over the previous year. Net profit rose 18% to ₹1,273 crore. Lloyd’s consumer durables division reported revenues of ₹3,785 crore in FY24, with losses narrowed to ₹164 crore, compared to ₹222 crore in FY23.

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