Havells to Up Switchgear Revenue by 1000 Cr. in 3 years
Havells India Ltd. is targeting an additional revenue of Rs. 1,000 Cr. in next 3 years from its circuit protection devices segment.
About Havells’ New Switchgears
The company has launched “advanced technology” Miniature Circuit Breakers (MCBs) & Residual Current Circuit Breakers (RCCBs) with “enhanced features” and for the first time is additionally offering 6 years warranty on these products. These new products are manufactured at Havells’ unit in Baddi, Himachal Pradesh. Capacity of the plant has been enhanced for manufacturing 6 million poles per month (circuit breaker capacity is measured in circuit breaker poles).
As per Vivek Yadav, Sr. VP, Building Segment, Havells India, new design of these circuit protection devices is done by “keeping in mind safety, short circuit overloading and current leakage issues” knowing the usage pattern of the new age customer who typically uses number of gadgets resulting in increased load on sockets.
The company is introducing these circuit breakers across the country starting with Kerala as Havells is among the top 3 makes in the city and in general Southern India contributes to 24% of the company’s total business.
Havells’ position in the Indian Switchgear Market
As per Havells’ own February 2019 Presentation it is estimated to have a 27% share of the organised switchgear market in India and ranks No. 1 Brand in this segment. As per the same presentation the organized switchgear market in India is estimated at Rs. 2,200 Cr. per annum (including both MCBs and Switches). Also last year Havell’s posted a healthy growth of 13% in the Switchgear segment.
The Switchgear segment is particularly profitable for Havells contributing 21% to its revenue mix and 27% to the company’s margins as per Havells Feb 2019 Investor Presentation.
As mentioned in an article in The Economics Times dtd. 26th June 2019, Vivek Yadav, Sr. VP of Building Segment, Havells said “We are the leaders in the domestic switchgear segment in the country and the new range will further cement our leadership position’’.
Other Major Players in the Switchgear Field
The other important players in the Indian switchgear maket along with Havells are: Larsen & Toubro Limited, ABB India Limited, Siemens Ltd, CG Power and Industrial Solutions Limited, Schneider Electric Infrastructure Limited, Legrand India Pvt. Ltd., GE T&D India Limited, HPL Electric and Power Limited and C&S Electric Limited.
Forecast for the Indian Switchgears Market
As per a report by TechSci Research the switchgear market is estimated to grow at Compound Annual Growth Rate (CAGR) of over 15 % by 2023. As per the Research Report this growth is expected to be fueled by the rise in per capita income leading to increase in demand of appliances like A.Cs, refrigerators etc. Also the development in residential, commercial and industrial sectors shall add to this growth. Moreover the vast scale of electrification in the country and expansion of transmission and distribution systems shall empower this expected market growth.