Dear Valued Shareholders,
I am pleased to present the Integrated Report of your Company for FY 2023-24.
Your Company demonstrated resilient performance this year. While our infrastructure-led
segments demonstrated robust growth, driven by government's sustained infrastructure
thrust, our B2C segments navigated through sluggish consumer demand environment.
On the profitability front, your Company expanded margins on the back of
premiumisation, cost efficiencies and softening of commodity prices. We maintained a
robust financial health, remained debt-free and continued to deliver on our dividend
payout track record, supported by strong cash flow generation.
Enriching Homes
Building upon a strong foundation, we are continuously enhancing our offerings to
transform homes into places where moments are cherished and lives are enriched. Our
products leverage latest technologies to enhance comfort and convenience for our
consumers. Havells commitment to quality not only ensures the functionality of our
products, but also a safe home environment. Our wide variety of products and proximity to
the consumer, allows us to go deeper into homes. We strive to provide a lasting experience
at the time of purchase as well as throughout the lifespan of our products with a robust
after-sales service.
Investing for Sustained Growth
Your Company continued its strategic investments in long-term growth drivers. These
investments are designed to drive sustainable long-term growth with operating leverage.
Brand
Your Company's sustained focus and investment on brand building has yielded results in
form of enhanced brand resonance and strong consumer preference. We have transitioned from
a single brand to ‘house of brands' catering to diverse consumers and price segments.
Havells tapped into the most premium advertising platforms across traditional and new-age
digital mediums.
Omni-channel
With an aim to ensure accessibility for our products, we extended our reach into
emerging channels by enhancing our presence in modern format retail & e-commerce while
also launching in quick commerce. As part of the Rural Vistaar programme, emphasis was
laid on creating retail presence in towns with <10,000 population through expansion of
UTSAV stores. This year alone, over 250 stores were added, taking the total to 600+ UTSAV
stores.
Innovation
Aiming to simplify the lives of our consumers, we continue to focus on development of
innovative products. Integrating IoT capabilities into our product lineup remained a key
tool to enhance the ease of use. Our R&D capabilities enables us to deliver
aesthetically- & functionally-unique solutions. We are taking initiatives to expand
our R&D facilities and further strengthen our existing talent pool.
Digitisation
During the year, significant investments were made towards digitisation initiatives
covering various facets of the organisation across functions.
It enabled us to drive efficiencies and enhance ease of working, both internally as
well as across the value chain.
Manufacturing
Capacity expansion was undertaken across categories, underscoring our commitment
towards in-house manufacturing. Establishing capacities closer to our customers in the
Southern part of the country not only enhances our competitiveness and responsiveness, but
also aligns with our ESG goals. We believe such manufacturing capabilities unlocks the
required flexibility to create products that stand out in the market, drive
premiumisation, and strengthen our brand positioning. We aspire to enhance our global
competitiveness by creating capacities, developing products and achieving cost
efficiencies. Furthermore, deployment of Manufacturing Execution Systems (MES) in various
plants is helping improve transparency and productivity.
Talent
Your Company has made significant investments in human capital. The focus remains on
nurturing internal talent as well as on strategic new additions. Additional emphasis was
laid on placing strong talent behind emerging categories.
International Business
Several new initiatives were undertaken to fuel our aspiration of growing the
international business. With an aim to take our priority products to key geographies, we
intend to partner with locally entrenched players in these geographies for a long-term
success story. As part of this approach, we have formed a JV for air conditioner business
in US and continue to explore options for other products and geographies.
ESG
As we progress on our sustainability journey, we remain steadfast in our commitment to
ESG principles. By integrating sustainability into our business strategy and
decision-making processes, we aim to generate longterm value for our stakeholders.
Through our environmental management initiatives, we are committed towards minimising
our carbon footprint, reducing waste, and conserving natural resources. We have started a
journey towards embracing a net-zero target, serving as a foundation for setting clear and
ambitious targets. During the year, we achieved a significant milestone by receiving
‘Zero Waste to Landfill' certification across all our plants and corporate office. As
a part of our green initiatives, we are piloting cleaner alternatives to traditional
fossil fuels, thus reducing greenhouse gas emissions and air pollutants. Energy efficiency
remains a key objective in our product development process, leading to substantial
electricity savings for consumers.
Committed to the betterment of community, our initiatives are aligned with ideology of
‘Padhega India, tabhi to badhega India'. Through association with Plaksha University,
we are working towards making a significant impact on the education & technology
journey of students by setting up research building with cutting-edge labs and facility.
Our ongoing mid-day meal initiative in Rajasthan helps in improving school enrolments and
attendance.
Our collaboration with Central Square Foundation (CSF) enabled upskilling of teachers
across 1,700+ schools, contributing towards the foundation of quality education. During
the year, we partnered with Chanakya University (Bangalore) for setup of data centre to
enable IT facilities for the students.
Outlook
As we enter FY 2024-25 with expectations of a strong summer, and robust real estate
activity, we are hopeful for consumer demand pickup. We endeavour to create long-term
value by leveraging our diverse product portfolio and making continued investment in the
key pillars of growth. With our initiatives starting to yield promising outcomes, we
remain optimistic about Lloyd's journey and its potential in an expanding consumer
durables space. We continue to be excited about the opportunity which India offers in the
categories we play in, and are confident about our ability to deliver shared value for all
our stakeholders.
In closing, I extend my sincere gratitude to our board of directors, employees,
customers, channel partners, suppliers and all our shareholders for their continuous faith
and support, empowering us at each step of our journey and contributing to our growth.
Regards,
Anil Rai Gupta
Chairman and Managing Director