Havells India: Management & Inception Story

Havells India Limited is one of the leading Fast Moving Electrical Goods (FMEG) Company and a major Power Distribution Equipment manufacturer with a strong Global presence. The Company was founded by Mr. Qimat Rai Gupta in the year 1958 and is based in Noida, India. Later, in the year 1971, Mr Gupta acquired the Brand ''Havells" from Haveli Ram Gandhi, a Delhi based businessman. Also, over next few years, company started manufacturing Rewireable Switches, Changeover Switches and Energy Meters.

Today, the company manufactures Products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Water Heaters, Fans, Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial & Industrial Applications and Modular Switches.

Thus, this covers the entire range of Household, Commercial and Industrial Electrical needs. Havells also owns some of the prestigious Global Brands like Crabtree, Standard, LLoyd and REO.

(A) Journey of Havells

Havells dealership stands strong among its peers
havells acquired Crabtree
Havells acquired AC company Lloyd Electric in 2017 & Havells also owns Standard brand
Havells - Journey Since Inception

(B) Family Structure - Havells

Havells is India company found and managed by Qiamt Rai Gupta
Family Structure of Havells India

(C) Executive Management of Havells

(i) Late Mr. Qimat Rai Gupta - Founder, Former Chairman & Managing Director

Mr. Qimat Rai Gupta was an Indian Entrepreneur and also the Founder, Former Chairman and Managing Director of Havells India Limited. He was born in 1937 to a lower middle-class family in Malerkotla, Undivided Punjab. His career in business began in 1958, when he quit his studies in Punjab and moved to New Delhi. Then, Mr Gupta started an Electrical Trading Shop called 'Guptaji & Company' in Bhagirath Place, an Electrical Wholesale Market in Delhi, with a capital of Rs 10,000.

In the year 1971, Mr. Gupta purchased an existing company, having Brand name "Havells" from Haveli Ram Gandhi for Rs 7,00,000. Later in the next few years, he started the First Manufacturing Plant at Kirti Nagar, New Delhi for the production of the Rewireable Switches and Changeover Switches. Then over next few years, he also started manufacturing of the Energy Meters. 

In fact Mr Gupta led Havells India to its creation and pioneering various trends in the FMEG Industry. As of 2015, Havells also ranked among the world's top Five Lighting Brands with Market Cap above $10 Billion. He also ranked on Forbes list of Global Billionaires and as among the 100 Richest Indians.

Mr. Q.R. Gupta died at the age of 77 due to Cardiac Arrest on 7 November 2014. Post his death, his Younger Son Mr Anil Rai Gupta, succeeded him as Havells' Chairman & Managing Director. Also, he is the only son being part of the Family Business.

(ii) Mr. Anil Rai Gupta - Current Chairman and Managing Director

Mr. Anil Rai Gupta, born on 20 April, 1969, is an Indian Business Man and also the Current Chairman and Managing Director of Havells India Limited.

Mr. Anil Rai attended St. Xavier's School in Delhi. He holds a Bachelor's Degree in Economics from Shri Ram College of Commerce (SRCC), New Delhi and also hold an MBA Degree from Wake Forest University, North Carolina, US. Then after completing his education, he joined his Family Business in the year 1992 as Non-executive Director. Also, he led Havells' acquisition of the European Lighting Company "Sylvania" and its restructuring as "Havells Sylvania" , (now Feilo Sylvania).

After the death of his father, Mr Anil succeeded him as the Chairman and the Managing Director of Havells India Limited. He focused on expanding the company's range of Electrical Consumer Durables as well as improving its brand recognition.

Age of Mr. Anil Rai is 51 Years. He is also one of the founders of Ashoka University, liberal Arts and Sciences University, located in Sonipat, Haryana. In the year 2016, He also wrote a biography of his father, Havells: The Untold Story of Qimat Rai Gupta.

His remuneration for FY20 amounted to Rs. 17.61 crore which is 0.19% of total revenue & 2.39% of net profit for the year.

(iii) Mr. Rajesh Kumar Gupta - Whole Time Director

He is not part of the family. But he is part of Havells business since 1982. Moreover, he began his career with Havells. He holds the position of Whole-time Director (Finance) and Group CFO of Havells. His age is 58 years. By qualification, he is a Chartered Accountant.

He oversees the company’s worldwide M&A strategy, corporate finance, business planning, investors’ relations, accounts, treasury, taxation, legal, corporate governance and administrative functions. Also, Mr Rajesh played an important role in acquisition of German brand Sylvania. Moreover, he also played a crucial role in the acquisition and merging of existing brands, including Crabtree and Standard, into Havells. Thus, he involved in company's crucial decisions over its journey.

His remuneration amounted to Rs 9.87 crore, 0.10% of revenue & 1.34% of net profit for FY20.

(iv) Mr Ameet Kumar Gupta - Whole Time Director

He is son of Mr Surjit Kumar Gupta. Mr Ameet is a bachelor in Engineering (Electronics & Communication) from Delhi University & an MBA (Marketing and Finance) from Wake Forest University, North Carolina, USA. He authorizes new product introduction and development along with setting up of new manufacturing facilities for the group.  

His remuneration for FY20 amounted to Rs 7.01 crore which is 0.07% of revenue & 0.95% of the net profit.

(v) Mr. Siddhartha Pandit - Whole Time Director

Mr Siddhartha Pandit has been heading the Legal Department of the Company since 2015. He is a legal professional with over 27 years of experience across several industries. Before Havells, he associated with Indus Towers as VP - Legal. Moreover, he earlier worked with Max India, Samsung, Ciena, Carrier. His remuneration for FY20 amounted to Rs 76,13,423 which is 0.10% of net profit.

The total managerial remuneration amounted to Rs 36.50 crore which is 0.39% of revenue & 4.96% of net profit for FY20.

(E) Shareholding Pattern

*QRG = Qimat Rai Gupta

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry's Publications. 

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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