Havells India announced the commencement of sales of locally manufactured air conditioners, cables, and lighting products such as luminaires in the United States. Anil Rai Gupta, the chairman and managing director, revealed that they are the pioneering Indian electronic manufacturer to introduce their brand in the US market.
Gupta further disclosed plans to invest Rs 10 billion in the current year to establish new capacities for cables, refrigerators, lighting, and fans. Additionally, they are exploring avenues for manufacturing AC compressors. The previous fiscal year, 2023-24, saw investments of around Rs 7 billion in capital expenditure.
For their entry into the US market, Havells introduced air conditioners under their Lloyd brand, presently retailed through the e-commerce platform of Lowe?s, an American home improvement retailer. Electrical cables and luminaires are marketed under the Havells brand.
Regarding expansion in the US, Gupta indicated that the company is in the process of forming two joint ventures with separate distribution firms, where Havells India will hold ownership ranging from 75% to 90%. One venture will handle the sale and distribution of ACs, while the other will focus on luminaires.
Gupta emphasized the intention to establish a brand presence in the US not solely based on pricing but also on technological superiority. He stated that their team's focus for the next two years will be on developing products tailored for the US market, which is witnessing growth.
Havells established its US headquarters in New York and recruited a local team for product development and customization in compliance with US standards. This marks the company's first venture into establishing its own base overseas, despite already exporting products worth nearly $80 million. In targeting AC sales, the company aims at installers, as US regulations mandate AC installation by certified professionals.
Rajiv Goel, the executive director, highlighted the favorable long-term prospects in the US, particularly with ACs covered under the Inflation Reduction Act. He projected that within the next 4-5 years, the US market could contribute 35-40% to Havells? total international business.
Goel also recognized the learning opportunities afforded by the US market and its potential impact on product launches aimed at the high-end segment in India. He noted that Indian consumers, especially in the upper strata, aspire for global standards, presenting an opportunity for product positioning targeting affluent demographics.
In the domestic market, the Lloyd brand has established dominance in the AC segment and is expanding into categories such as refrigerators, washing machines, and televisions.
