2021: The year that was
The year 2021 was indeed unique as the COVID-19 contagion ravaged socio-economic developments globally. We started off on a good note across segments both on turnover and margins. Unfortunately, the second wave of COVID gripped the country with even higher ferocity leading to localised lockdown, this impacted the business in the first quarter of the current FY. Post-COVID, the demand recovery has been encouraging, supported by the revival of real estate and an increase in the Infra & CAPEX. Inflationary trends in commodity prices have been a concern but we expect demand to be resilient.
Despite the COVID-led challenges, we have expanded our distribution network and launched new products across verticals which resulted in business growth. We launched solar and shielded cables last year. The shielded cables act to reduce the volume and intensity of all kinds of electrical noise and EMI, decreasing the adverse effects & losses on signals and transmission.
Our solar cable category has witnessed encouraging demand from consumers, especially in the commercial segment. It offers prominent features such as environmental sustainability and increases energy efficiency. The transmission mode of solar energy power generation is cheap, clean and reliable. This increases the bankability of solar projects and has therefore emerged as an important component for such initiatives. The range is manufactured at our Alwar plant, which is one of India’s largest cable manufacturing plants, ensuring good quality products.
2022: The year that will be
For the coming year – 2022, Havells, as a brand, will go deeper into making homes smarter and powering a holistic digital experience. We anticipate that next year will be a better year with Havells continuing its focus on innovation and customer-centricity.
Last fiscal, we gained market share across categories along with increased distribution penetration in both urban and rural markets. We will continue to strengthen our credentials in product development, emerging consumer trends, and serving through the omnichannel network. We believe in the secular growth potential of India and Havells.
Key Trends Driving the Growth
FY 2020-21 was a period of significant challenges, which has left a lot of learning for us. Most of us have used devices and appliances exhaustively during lockdowns and experienced the benefits of using quality products. Consumers can now clearly identify the need for virtuous products and demand smart devices for convenience. This change in consumer behaviour will lead to a phenomenal increase in demand for Havells products for electrical protection devices, high-quality house wires and other wiring accessories, as only a handful of brands offer superior quality and exclusive range for every customer segment.
Havells will also largely benefit from the increased spending in infrastructure development under self-reliant India drive as architects, builders, and electrical contractors are emphasising for ‘Make in India’ brands that match (or improve upon) the global quality standards. Our endeavour to introduce innovative products which ensure safety and improved efficiency is further strengthened with demand for Havells products from the industrial and OEM sector. A new trend that the electric wire and cable industry has witnessed is the increasing sales of HVDC power cables. The benefits of HVDC cables are reduced transmission losses, lightweight and dimensions. HVDC cables such as HVDC underground cables and HVDC light cables play an indispensable role in long-distance and high-voltage power transfer and submarine power transmission.
Also Read: Havells India Limited Interview.
We are working closely with many specification agencies to provide customised engineered solutions in the minimum time frame. We firmly believe that India will witness a new chapter in the growth story and Havells will be a key contributor in the electrical sphere with a superior comprehensive range of switchgear & switches, house cables and other domestic appliances.
