VISTAR

CLASSIFICATION | PUBLIC
 Vistar
01 02 03 04 05 06 07

Rural Contribution Brands in Rural FMCG Model Our Model Product Basket ROI Our Vision

CLASSIFICATION | PUBLIC
 Rural India Contributes

46% of Indian Expenditure

₹

70% of Indian Population 56% of Indian Income

CLASSIFICATION | PUBLIC
 Major Brands in Rural

o FMCG Market Size- 2.5 lakh Crore

o Rural Contribution – 33%
o Rural Contribution to number of outlets- 64%
o Growth from 2012-2017 – 12-15%

o Philips Lighting started Semi Urban Operation in 2003

o Turnover in 2017 was 334crore with a growth of 9.4% over previous year.
o Contribution is 20% of Consumer Lighting Turnover
o Current Channel Strength – 113 SSTs & 2278 Sub Stockiests

CLASSIFICATION | PUBLIC
 FMCG - Channel Model

01
Company

02 Distributor
Modern
Trade
Super
Stockiest

04 Retailers Retailers Stockiest

Retailers Retailers

03
CLASSIFICATION | PUBLIC
 Havells - Current Channel Model

Havells – Galaxy Havells – Direct Dealers Havells – Distribution

*480 Galaxy across India *2779 Dealers *664+ Distributor

CLASSIFICATION | PUBLIC
 Havells Tier Towns Specification

Tier 1 – Urban Towns Tier 3 – Rural 1.0

( Vistaar )
Population – 100k+
No. of Towns - 608 Population – 10k to 50k
Tier1 + No. of Towns – 2880
100k

Tier 2
– 100k
50k

Tier 2 – Semi Urban Tier 3 5 0k Tier 4 – Rural 2.0

10k –
Population – 50k to Population – Below 10k
100k No. of Towns – 664
No. of Towns – 603 No. of Villages – 600K +
Tier 4 w 1 0k
Belo

CLASSIFICATION | PUBLIC
 Havells – Distribution Model

Havells

Class I Distributor
> 100 k 605 140

Class II Semi Urban

612 336
50 – 200 k Markets

Class III
20 – 49 k
1601 1402 Rural Channel
Rural Markets
Class IV 1356 1301
10 – 20 k

Class V 701 675

5 – 10 k Indirect
Reach
Class VI 232 619,795
<5k

POP Strata Towns* Villages

CLASSIFICATION | RESTRICTED
 Havells – Distribution
Distribution Model Model

Urban Distribution Model Havells Rural Channel Model

Havells

Metro Trade Light

Distributor

Elec. O/l N.Elec. O/l

Trade Light Superstockist

Class I , II
Distributor

Elec. O/l N.Elec. O/l

Rural Distributor S1 S2 S3
Class III , IV
Elec. O/l N.Elec. O/l Elec. O/l N.Elec. O/l

Rural Retailers

CLASSIFICATION | RESTRICTED
 Havells Expansion in Rural Market

Vistar
2800 Sub
Stockiest
100 Super
Stockiest
271 LASF
38 Rural
Specialist
Su ckie
St

pe st
o

Rural
Retailers Retailers Retailers Retailers Retailers
Distributor

CLASSIFICATION | PUBLIC
 Havells – Channel

Galaxy

Direct Dealers

Distribution

“Vistaar”
Rural Channel

CLASSIFICATION | PUBLIC
 ROI Rural
ROISuper
ModelStockiest
– Havells One

Parameters Plan • Payment terms Cash & Carry for Rural

Super Stockiests
• No Other Corporate Incentive
Super Stockiest Gross Margin 4.50%
• Low margins high rotations based ROI
Distribution Expenses 2.00%
model
Investment (In Days) 30
STOCKS (In Days) 30 • DMS billing must for SST
MARKET CREDIT 0 • Minimum 30 RDs/Towns for every SST

No. of Rotations 12

Net Margin 2.50%

ROI 30%

12
 Havells Rural Product Basket
 First Company in India to enter Rural market with multi facet categories

Consumer Lighting Small Domestic Appliances

CLASSIFICATION | PUBLIC
Our Vision– Havells One
ROI Model

 3000 Rural Distributors

 90000 Retailer Coverage

 1000 Crore Turnover

14