Electrical goods company Havells is eyeing a larger play in the fans category through the fans category.
In an interaction with Moneycontrol, Ravindra Singh Negi, President, Havells said that the idea is to gain market share across categories.
India's organised fan market is currently pegged at Rs 8,000 crore. Havells entered the fans segment in 2003 and has today emerged as one of the fastest growing, most trusted and amongst the top two players in the country. The company is estimated to have a market share of about 19 percent.
"We are in product categories where there are multiple players. Even moving up market share by one percentage is significant. Our idea is that if if we are able to offer need-based products, customers will be eager to buy," he said.
At the end of Q3FY20, net revenue stood at Rs 581 crore and contributed 25.7 percent of the margins.
"We are seeing green shoots as far as the business is concerned. India had extreme winters so the heating products got buoyancy. Similarly, since there has been no extension of the winters the summer products are seeing a pickup. This should lead to healthy growth for the company and the industry," he added.
Ahead of the onset of the summer season, Havells has launched a new fan 'Carnesia-I' with a smart mode. Depending on the weather and the humidity, the smart mode would enable the fan to adjust the speed. The price will approximately be Rs 4,500.
With respect to the divisions, Havells operates in four different segments like switchgears, cables, lighting & fixtures and electrical consumer durables.
For fans specifically, Havells has a manufacturing plant in Haridwar, Uttarakhand. Here, all categories of fans including ceiling, table, wall, exhaust & pedestal are manufactured under one roof. The current production capacity of the plant is more than 10 million fans annually. The plant is equipped with technology including automated Computer Numerical Control (CNC) machines for end covers, computerised conveyor assembly line and testing facilities.
On the product front, Havells is present across consumer durables like fans, geyser, water purifier, lighting, kitchen appliances as well as air conditioners, washing machines and LED televisions through the Lloyd Consumer brand.
"We don't get into any category unless we are able to be significantly different. We look at the use-case for each product category," he added.
The wholly-owned subsidiaries of Havells including Havells Global, Standard Electrical, Lloyd Consumer and Promptec Renewable Energy Solutions are now merged with the parent company.