Submitted to- Dr.

Renuka sharma

Submitted by- Hardika verma

MBA F&B(1st year)

2120982548

Project report of HAVELLS INDIA LTD

CONTENT:

 Introduction to FMEG
 Current and global scenario of FNEG
 Major player in FMEG industry
 Introduction to the company- Havells India ltd
 Information in annual report of Havells
 Performance highlights of Havells India ltd.
 Financial highlights of Havells India ltd.
Introduction to Industry and Its Current scenario – Fast Moving
Electrical Goods
Fast Moving Electrical Goods (FMEG) products represent the basic needs of its consumers in the modern society,
influencing their life style in every way from living room to drawing room, from kitchen to the bedroom.
Globalization has resulted in fierce competition among the players of this fast growing sector. The only way
therefore to sustain a profitable growth is to stay competitive in local and global market. Fast-Moving Electric
Goods (FMEG) is an emerging sector in present market scenario in India. With growth in infrastructure in areas of
residential, commercial and industrial, the consumption of electric goods have increased in exponential ratio. The
Indian electrical industry is 40 billion USD that contributes to nearly 2 % of India’s GDP. The growth of FMEG
products in India has been sluggish form the last few years. The slowdown in construction industry is widely
perceived as the main reason. However, new Government schemes such as Housing for All by 2022 (20 million
houses for urban poor and 30 million houses for rural poor) and Smart Cities project promise to spur the demand of
electrical products.

The electrical industry has immense growth potential especially considering the increased penetration of
electricity and home improvement drive. Historically, the industry has high incidence of unorganized
suppliers. Over the years, there has been a gradual shift of demand from unorganized to organized, Covid
has in fact accelerated this process. It was seen that supplies in the unorganized space were disrupted
severely due to Covid led challenges such as working capital shortage, unavailability of labour, gaps in
supply chain and alike. Further, the imported supplies were adversely impacted, causing disruption for
those who infiltrate the market with substandard imported items.

MAJOR PLAYER IN FMEG INDUSTRY

 1. HAVELLS INDIA ltd- Havells India Limited is an Indian electrical equipment company
based in nodia. The company has 23 branches / representative offices with over 6,000 workers in over 50
countries.  Havells India owns some brands like Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptech.
Stock price: HAVELLS (NSE)  ₹1,432.50

2. Siemens Ltd- Siemens India is a leader in technology solutions for intelligent (smart),
sustainable cities, smart grid, building technologies, mobility and power distribution. Siemens is involved in

the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) of the Government

of India for installing Smart Grid solutions in many cities in India.

Total Sales: Rs 13,767 Cr

Market Cap:  43,488 Cr.

3. CG Power and Industrial Solutions (Crompton Greaves)

CG Power and Industrial Solutions Limited, previously known as Crompton Greaves Limited, is
an Indian multinational company engaged in design, manufacturing, and marketing of products
related to power generation, transmission, and distribution. It is based in Mumbai and a part of the
Murugappa Group.
Founder- R. E. B. Crompton Founded: 1878
Stock price: CGPOWER (NSE)  ₹114.70

4. ABB India ltd

ABB India Ltd is a technology leader that is driving the digital transformation of industries. With a
history of innovation spanning more than 130 years, ABB has four customer-focused, globally
leading businesses: Electrification, Industrial Automation, Motion, and Robotics & Discrete
Automation, supported by the ABB Ability™ digital platform.

 Total Sales: Rs 7,315 Cr

 Market Cap:  20,886 Cr.
Introduction to company- Havells India Limited.

Havells India Limited is an Indian electrical equipment company based in Noida. Havells India owns some brands like Havells, Lloyd,
Crabtree, Standard . Havells India Limited is a Fast Moving Electrical Goods (FMEG) Company with an extremely strong global presence

Founder: Qimat Rai Gupta Founded in 1958

Net income: ₹735 crore (US$100 million)

Products: Fast Moving Electrical Goods

Headquarters: Noida, Uttar Pradesh, India Havells

Presence globally- 60+Countries 14,270 Strong Dealer Network.

GLIMPES OF IMFORMATION WE CAN HAVE FROM OUR
COMPANY ANNUAL REPORT.

 Integrated Report
1. Mission and Vision of company-

Havells wanna see them as globally recognized coorpoation for there excellence, governance, consumer delight, and fairness to each
stakeholder. They wanna get all of this with through there business ethics, global reach, building long term relationship with all of there
customer, associates, partner and employees.

2. Value –

They will look after there customer delight, leadership, integrity and transparency, pursuit of excellence in there journey to achieve
the vision of the company.
3. Types of different Capitals-

 we can look there are different types of capitals in the company which create value to the company.
 FINANCIAL – essential basis for sustaining and creating value across all capital stock.
 MANUFACTURED- sustainable investment in purchases, development and maintenance of plant and equipment.
 INTELLECTUAL- the value of a company's employee knowledge, skills, business training, or any proprietary information.
 HUMAN- the skills, knowledge, and experience possessed by an individual or population
 NATURAL- Natural capital can be defined as the world's stocks of natural assets which include geology, soil, air, water and all
living things.
 SOCIAL AND RELATIONSHIP- consists of intangibles (shared values, commitments and knowledge) that form the basis of the
reputation and trust that we have developed.

4. Product range Geographical Presence

They have lot of product range like AC, TV, Fans, They have very strong dealer network all over the
washing machine and many more. Almost every world. There presence is in more than 60+Countries
electrical product is manufactured in havells this 14,270 Strong Dealer Network, 39 branch offices, 14
can be the reason of there global recognition. manufacturing facilities across India.
 Statutory Reports

5. Directors’ Report
Under Section 415 of the Companies Act 2006, the directors of a company are required to prepare a directors’ report at the end of
each financial year. This legislation is part of a general move towards greater corporate transparency.

The information provided by the directors’ report helps shareholders understand:

 Whether the company’s finances are in good health;
 Whether the company has the capacity to expand and grow;
 How well the company is performing within its market, and how well the market is performing in general;
 How well the company is complying with financial regulations, accounting standards and social responsibility requirements.
 By knowing this information, shareholders can make better informed decisions and can hold the directors of the company to
greater account.

Business Responsibility Report

 SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1Corporate Identity Number (CIN) of the Company L31900DL1983PLC016304

2 Name of the Company Havells India Limited
3 Registered address 904, 9th Floor, Surya Kiran Building, K G Marg,
Connaught Place, New Delhi – 110001
4 Website http://www.havells.com/
5 E-mail id investors@havells.com
6 Financial Year reported 1st April 2020 to 31st March 2021

 SECTION B: FINANCIAL DETAILS OF THE COMPANY

Paid-up Capital (INR) 62.60 Crores
Total Turnover (INR) 10427.92 Crores
Total Profit after Taxes (INR) 1039.64 Crores
 6. Management Discussion and Analysis
Management discussion and analysis (MD&A) is a section within a company's annual report or quarterly
filing where executives analyze the company's performance. The section can also include a discussion of
compliance, risks, and future plans, such as goals and new projects.

In Havells annual report it consists-

 Industry trends and relative position- Havells
having extensive manufacturing base with backward
integration could seize the opportunity.We believe channel partners tend to have long-term
sustainable relationship with company such as Havells who can ensure continuity in supply of fast
moving goods.
 Our strategy- Availability, Assurance and Affordability
Transitioning skill set
Technology adoption
Sustainability
Inflationary trends
 Business Growth Levers- Small dealer activation
Improved sales phasing
live digital events
Registration process and automation
E-Commerce
Segment-wise Overview including industry structure, developments
and outlook

 Risk and Concerns- Economic slowdown

Commodity inflation
Slower than expected pick-up in housing
Increase in competition
Non-availability of regular and quality power

7. Corporate Governance Report

 A corporate governance report is also called the annual corporate report. ... The corporate report
should include a statement of disclosure of the company's governance procedures and compliance.
It should also disclose the principles and codes that guide the company's procedures.

In Havells annual report we can look-

 A Brief Statement on Listed Entity’s Philosophy on Code of Governance
 Board of Directors
 Audit Committee
 Nomination and Remuneration Committee
 Remuneration of Directors
 Stakeholders Relationship/ Grievance Redressal
Committee

PERFORMANCE HIGHLIGHTS 
Profit Before Tax and Exceptional Items Earnings Per Share
(PBT) & PBT as % to Net Revenue

Net Revenue EBIDTA & EBIDTA Margin

n
Profit before tax is a measure that looks at a company's profits before the company has to pay corporate
income tax. It essentially is all of a company's profits without the consideration of any tax. Here we can
see the PBT is good in FY21 after the fall back in FY20 .

Earning per share is increased and dividend percentage is decreased dividend was high 43% in FY19 but it
has decreased to 39%, even at the pandemic it was 40%.

Net Revenue has been increased after fall back in FY20 but the net revenue increasing rate was much
more in FY19 but even at the time pandemic company has good results.

Earning before interest, depreciation, tax and amortization investors can use EBITDA to analyze and
compare profitability between companies and industries and if we compare EBITDA of havells and
simens then havells impressing result while simens have less EBITA than havells.

from the performance highlights we can get that the company set a minor fall back while 2020 due to
pandemic, but there comeback in 2021 is quiet impressing they been raised above from there fall back.

Auditor of Havells
S.R. Batliboi & Co. LLP

Financials statements-
P\L Account
major component of revenue
 (page 151)

Revenue from operation -Revenue from operations or operating revenue can be defined as the income generated
by an entity from its daily core business operations.

Sales of last five year

2021- 10,300.19

2020- 9,309.83

2019- 10,057.62

2018- 8,260.27

2017- 6,585.96

Havells has increased the sales of products and services from 991cr from last year 2020 but in year ending 2019 the
sales were 9,975.12cr company has been in fallback due pandemic like many other but if we look at the past record
of last five year revenue from operation the sales have been increased at good scale.

OTHER INCOME
Other income is income that does not come from a company's main business, such as interest. Examples of other income include income from
interest, rent, and gains resulting from the sale of fixed assets.

EXPENSES

 Cost of raw material – expenses incurred in buying material to make final goods. They use copper, aluminum, paint, chemicals etc.
 Purchase of traded goods- refer to all the purchases of finished goods that the company buys towards conducting its business (in
terms of sales and sales costs).
 Employee benefits expenses- Employee benefits refer to all forms of compensation (cash/non-cash) paid by an employer to
employee apart from salary/wages for the service provided to the employer.
 Finance cost- Financing cost (FC), also known as the cost of finances (COF), is the cost, interest, and other charges involved in
the borrowing of money to build or purchase assets.
 Depreciation expenses- It is amortized on straight line basis over the estimated useful life  and is recognised in the statement of
profit and loss.

Profit form different products and location

If we compare data from 2020 to 2021 the company has raised the profit product wise and globally also. The most profitable product in 2021
was switchgears and in 2020 its cables. Havells has variety of products and each of product is success and has given profit to the company. If
we look profits from location wise India a home of havells has more success to comapany rather than other countries, overseas revenue is in
comparision to India is very low. Even at the time of pandemic company has made profits in products but some had been fall .

BALANCE SHEET
 Differnent Classes of assets and its Deprication method and rate

FIXED ASSETS
these are the different assets with it usefull lifes every
asset is depricated with straight line method and there is no change in
depriciation method. 792.01total deprication amount of
this year.

INTANGIBLE ASSETS

LONG TERM DEBT

  The Company has availed a secured loan of ` 108 Crores against sanctioned amount of ` 300 crores from CITI bank N.A. during financial
year 2017-18.The current outstanding and sanctioned amount against the loan is ` Nil (March 31, 2020; ` 40.50 Crores). The loan was
obtained for the purpose of reimbursement of prior capital expenditure incurred by the company during 12 months previous to sanction
date. The loan was having 15 months moratorium period and repayable in 8 quarterly instalments thereafter. This loan was secured by
way of first exclusive charge by way of a hypothecation over the Company’s all movable fixed assets both present and future situated at
SP 181 to 189 and 191 (A), Industrial Area, Phase II, Neemrana, Alwar, Rajasthan, India. The Company has complied with all covenants
throughout the reporting period. The said loan has been repaid on due date during the year including interest thereon.

 The Company has satisfied all debt covenants prescribed in terms of term loan agreements.

SHORT TERM LIABILITIES

(i) Trade Payables include due to related parties ` 15.85 crores (March 31, 2020 : ` 4.95 crores)
(ii) The amounts are unsecured and non interest-bearing and are usually on varying trade term.
(iii) For terms and conditions with related parties.
(iv) Trade payables includes acceptances of ` 64.11 crores (March 31, 2020: ` 389.71 crores)
a) Investor Education and Protection Fund is being credited by the amount of unclaimed dividend after seven years from the due date.
The Company has transferred ` 0.14 crores (March 31, 2020: ` 0.11 crore) out of unclaimed dividend to Investor Education and
Protection Fund of Central Government in accordance with the provisions of section 124 of the Companies Act,2013.
b) Monies collected on behalf of banks and remitted after the balance sheet date.
c) Other includes amount against E-waste liability

SHAREHOLDER SUMMARY

 Most of the shareholding is by promoters of the company and they are holding shares for long time because they trust it must be for
their good returns.
 FII (foreign institutional investor)- company has a good % of FII and foreign investors is on increase from long time. This year
company has good growth rate in FII.
 DII(Domestic institutional investors)- DII holding includes money invested by mutual funds, UTI, financial institutions, banks,
insurance companies, government and venture capital funds. Company is suffering from decrease in DII. In December 2020
company was having a 10.9% and now September 2021 it’s just 6.23%.
 Public- public shareholding is on little decrease in december 2020 it was 8.18% and now its 7.54%.

RESERVE AND SURPLUS

2021 2020 2019 2018 2017

Reserve and surplus has been highest back from last 5 years . i have seen lot of growth in company reserve & surplus the growth rate of 2020
is comapartively low from rest of the year just becouse of pandemic but still company has growth. From this last several years company
always has a profit and growth rate is also impressing.
DEBT TO EQUITY

The lower this ratio, the better it is for long-term lenders because they are more

secure in that case. Lower than 2: 1 debt equity ratio provides sufficient protection to

long-term lenders.

With this we can analyis that the company has good debt to equity ratio.

Cash flow analysis

Cash flow from operating activities

Cash flow has been decreased this year by 167cr due to increase in depreciation because company has has purchased more assets, there is also
gain on disposal of property, plant and equipment, interest expenses has been increased form 5cr to 58cr and it is good sign that company is
paying to debtor, there is also increase in trade receivable and contract asset, I can also see in annual report that there is increase in financial
liability that can be increase in creditors or interest on loan is due, and one of major factor is there is lot of increase in inventories it has been
raised by 700cr.

Cash flow from investing activity

I can see investing activities are in negative it can be because of company investment in new asset or long term health investment of company.
I see in annual report that there is decrease in property, plant & equipment and intangible asset but with major increase in investment in fixed
deposits with the bank and financial institutions this increase is of 500cr.

Cash flow from operating activities

Cash flow from operating activities has been in positive compared to last year during is year company has issued a unsecured commercial
paper of 500cr which was repaid with interest and they have also raised a loan from bank of 200cr which was repaid within time and with
interest and one more loan from another bank of 300cr which was also repaid. The interest paid value has been increased due all the short
term loans.

Combining 3 of these activities company is in good position to avoid excessive borrowing, expand its business, pay dividends, and weather
hard times.

DUPOINT ANALYSIS

Latest news of havells

 Havells India shares fall 1.81 per cent in Wednesday's trading session
Shares of Havells India NSE -0.17 % Ltd. fell 1.81 per cent to Rs 1373.6 in Wednesday's trade as of 12:26PM (IST) even as the
benchmark Nifty ruled at 17951.50, down 47.7 points.

 Havells India Announcement Under Regulation 30 - Commencement Of Production

In terms of Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 read with corresponding circulars and notifications issued thereunder, it is hereby informed that the Company
viz. Havells India Limited, has started commercial production of washing machines at its Ghiloth plant from 19th November 2021.