Fast Moving Electrical Goods Industry Analysis

Introduction

Fast moving electrical goods industry is the most dynamic industry in global market. In fast
moving electrical goods (MEG) organizations, products have a short product life cycle ID
lights, Fans, Switches and iPods have new innovations and design change very frequently.
Modern FMEG products have changed the ways for people interaction, entertainment,
manage finance and organize their lives. There are different challenges for IMG industries in
managing their supply chain FMFG sector being exposed tis products with short product life-
cycle are prone to stiff competition. It is essential for organization to innovate continuously to
maintain market share and sustain product line (Chimhunda & Hamlin, 2007) Integrated
electrically-enabled supply chain management (e SCM) systems and synchronized decision
making responsibility across extended enterprises can be expected to respond directly to
genuine customer demand with an anti-oscillator effect (Mbbele. 2016). According to Mhhele
(2016) in order to decrosse uncertainty.
one needs to integrate the IT system with the supply chain network The aim of this
reach paper is in style the challenges from multing in lower production cours, shorter lead
times, and ser product delivery effective and efficient supply chain management for Fast
Moving Electrical Goods organization.

Market Size
Electrical Equipment Sector: Creating a self-reliant India augurs well for the sector

The electrical equipment sector has registered robust growth on an annual basis in financial
parameters across the board.

According to market research and advisory firm Technavio, the Indian electric equipment
market is expected to increase by USD 33.74 billion from 2021 to 2025 to reach USD 70.69
billion. The sector’s growth momentum is expected to accelerate at a CAGR of 9% and it
contributes 1.5% to India’s overall GDP. Although India has adequate power generation
capacity, still a substantial proportion of the population has limited access to electricity,
mainly because of the lack of proper transmission and distribution infrastructure. Hence,
electrification is a megatrend which is driving growth and creating new opportunities to
participate in infrastructure development as well as demand emanating from semi-urban and
rural markets.

The ‘Make in India’ initiative along with new domestic sourcing norms for the power sector
are furnishing a fillip to the electric equipment sector. Also, the recent impetus to creating a
self-reliant India augurs well for the sector. The Indian electric equipment sector has a good
mix of large private and public sector enterprises, multinational companies as well as small
and medium companies. The industry can be broadly classified into two segments –
generation equipment and transmission and distribution equipment. It also includes other
electrical equipment such as instrument transformers, surge arrestors, stamping and
lamination, insulators, insulating material, industrial electronics, indicating instruments,
winding wires, etc.
The domestic wires and cables market, which is estimated at Rs 600-650 billion, makes up
40-45% of the electrical equipment sector. Major players are optimistic about the medium to
the long-term potential of the wires and cables sector, given its diverse utility and a
conducive demand environment. The sector is estimated to have grown by 20-25% in FY22,
primarily driven by inflation-led higher realisations. An increase in commodity input costs due
to the rise in copper and aluminium prices was effectively passed on to the consumers by
companies. Infrastructure and construction activities were slow in the first quarter of FY22
but saw a sequential increase as the second wave of the pandemic subsided.

Future Scope

In India, access to electricity has been improving significantly, developing a new market in
semi-urban and rural for electrical equipment. Tailwinds such as the government’s focus on
infrastructure, the revival of the real estate sector, and healthy demand visibility across
various end-user industries are ameliorating the demand environment for the sector. Various
government schemes are focused on the mission of ‘electricity for all’ and reducing
transmission loss of electricity. Nonetheless, high levels of inflation and volatility in key raw
materials are expected to be major headwinds for the sector in FY23. A rise in power
generation from renewable energy sources will also provide new growth levers in the years .
According to the International Energy Agency (IEA), electricity demand in India is projected
to grow by nearly 5% per year till 2040 as the economy is expected to overtake the
European Union in terms of its installed capacity in the next two decades, depending on the
progress of the current Stated Policies Scenario (STEPS). This directly translates into more
demand for power distribution and transmission infrastructure in the economy along with the
need to reduce the gap created between peak load and supply due to power outages.
Therefore, a rise in the power generation segment will surely augur well for the sustainable
growth of electrical equipment manufacturers.

Company Analysis
Havells India Limited is an Indian multinational electrical equipment company, based in
Noida. It was founded by Haveli Ram Gandhi, later sold to Qimat Rai Gupta who was his
distributor. The company manufactures home appliances, lighting for domestic, commercial
and industrial applications, LED lighting, fans, modular switches and wiring accessories,
water heaters, industrial and domestic circuit protection switchgear, industrial and domestic
cables and wires, induction motors, and capacitors among others. Havells owns brands like
Havells, Lloyd, Crabtree, Standard Electric, Reo and Promp tec.
The company has 23 branches or representative offices with over 6,000 workers in over
50 countries. India's first Lloyd's exclusive outlet is acquired by businessman Rajan Bansal.
The store is situated in western part of New Delhi, Paschim Vihar.As of 2016, it has 11
manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad, Alwar,
Neemrana, and Bengaluru.

In April 2015, Havells acquired a 51% majority stake in Promptec Renewable[13] before
increasing its stake in the company to 100% in 2018. In December 2015, Havells sold 80%
stake in Sylvania Malta and Havells Exim Hong Kong to Shanghai Feilo Acoustics for ₹1,070
crore (US$166.79 million)[14] and sold the remaining 20% two years later.[15] In February
2017, it acquired the consumer durables business of Lloyd Electricals at an enterprise value
of ₹1,600 crore (US$245.69 million).
VISION
To be a globally recognised corporation known for excellence, governance, consumer
delight and fairness to each stakeholder including the society and environment in which we
operate.

MISSION
To achieve our vision through business ethics, global reach, technological expertise, building
long-term relationships with all our associates, customers, partners and employees.

Founder

Late Sh. Qimat Rai Gupta

Founder Chairman & Managing Director, Havells India Ltd. Born to a lower middle-class
family in the year 1937 in then undivided Punjab, Late Shri Qimat Rai Gupta’s upbringing
was shaped by Indian quintessence and the teachings of the Bhagwad Gita.

His partnership with a 20,000 strong network of dealers, distributors, and retailers has
propelled Havells’ profits while also benefiting its stakeholders. Each person’s association
with him brought benefit to their lives. Company Social Responsibility was never left in the
dark with QRG. Havells’ investment in staff and transport infrastructure has improved their
workers’ standard of living by manifolds while their setting up and maintaining of a central
kitchen has fed nutritious, wholesome and hygienic mid-day meals to over 50,000 school
going children each day, covering 666 government schools in the Alwar district of Rajasthan.