A popular electrical equipment company, Havell was formed during the year 1958 and is headquartered in Noida, India. It is the largest electrical equipment company in India. Ever since its formation, Havells produces a huge range of products that range from home and kitchen appliances, commercial and industrial appliances, domestic lightening, LED lighting, modular switches, fans, water heaters, induction motors, and many more.
The company owns various brands like Havells, Lloyd, Standard Electric, Crabtree, and Prompt each. The company has about 23 branches and representative’s offices having more than 6000 workers in about 50 countries. It is a fast-moving electrical goods company that has a strong global presence having an extensive distribution network with world class quality.
It is appreciated for its desired market dominance that ranges across its wide spectrum of products. Havells India had pioneered the concept of a special brand showroom in the electrical industry with means of Havells Galaxy. As of today, Havells has more than 500 Havells Galaxies that is seen across the country and helps customers to choose from many products.
This brand enjoys high recall and loyalty and owns many prestigious brands. Havells India has 12 manufacturing plants in India that are located at Baddi, Haridwar, Faridabad, Sahibabad, Alwar, Assam, and Neemrana.
Through this article let us discuss the SWOT analysis of Havells India.
Strengths in the SWOT Analysis of Havells India
- High Recall and Loyalty – Havells India has high brand recall and loyalty and owns many prestigious brands. Havells India has 12 manufacturing plants in India that are located at Baddi, Haridwar, Faridabad, Sahibabad, Alwar, Assam, and Neemrana.
- Preferred Choice for Electrical Products – Havells along with its brand have earned the difference of being the preferred choice of various electrical products for consumers both in India and abroad.
- Huge Product Range – Havells produces a huge range of products that range from home and kitchen appliances, commercial and industrial appliances, domestic lightening, LED lighting, modular switches, fans, water heaters, induction motors, and many more. All their products are of high-quality and the quality is the same for both the Indian and international market.
- Global Presence – Havells India has expanded its business operations at the international level and has a strong distribution network out there.
- Good Command on Fast Growing Countries – Havells India has a great investment in fast-growing and emerging countries. Due to this, it has expanded its business operations and also attain greater visibility.
- Good Acquisition History – Havells India has created a good history of the acquisition. It had acquired the lightning business of Sylvania, a Frankfurt-based company which is a global leader in the lighting business
- High R&D Investment – Havells India has a high investment in R&D and has helped them to deliver various innovative solutions to produce good products.
- In-house Manufacturing – Havells India has an in-house manufacturing unit for their products which is easy to monitor the activities.
Weaknesses in the SWOT Analysis of Havells India
- Debt Ratio – Havells India is estimated to possess high debt ratio that is a big weakness for its business success.
- Small Market Share at the Global Level – Havells India tends to have a small market share at the global level. Due to this, the company sees less visibility with the brand at all places.
- The slowdown of Real Estate – At the time when there is a dip in the real estate, Havells India is said to perform low due to the impact on the economy.
- Global Market Performance – The global market performance will hit the business operations of Havells India more adversely especially after having a series of acquisitions.
- Switchgear Segment – Havells India has a weak position in the industrial switchgear segment.
Opportunities in the SWOT Analysis of Havells India
- Globally Emerging Markets – Havells India will have to have its visibility at the global level to enhance its business operations.
- Focus on Weak Segment – The company will have to focus on its weak segment. This will provide them with more opportunity to expand their business operations.
- Chinese Firm Acquisition – Havells India sees a good opportunity on the acquisition of low-cost manufacturing of Chinese firms.
- Increase in Customer Market – The company has an expected customer market to grow by 15-20%. This ensures a stronger business revenue for the company.
- Business Diversification – Going up the value chain will, in fact, provide more opportunity to see new business domains for the company.
Threats in the SWOT Analysis of Havells India
- Delay with Power Projects – Havells India delay in execution of power projects is a serious threat to the company as it affects its reputation and business revenue.
- Unorganized Market – The unorganized market segment will tend to pull down its business operations that are seen as a great threat to the company.
- Changing Government Policies – The quite often updates of the Government policies is an obstacle to industrial sales.
- A Single Entry for the Business – Havells India sees a maximum business that comes from only India and hence it’s business revenue depends only on the Indian economic situation. This is a serious threat to the overall growth of the business.