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INDIA

MINI PROJECT REPORT


Subject:
STRATEGIC MANAGEMENT

Submitted by:

MUHAMMED SHEFEEQUE P
Register Number (1635f0078)

MASTER OF BUSSINESS ADMINISTRATION

OF BHARATHIYAR UNIVERSITY

DEPARTMENT OF MBA

SANKARA COLLEGE OF SCIENCE AND COMMERCE


INTRODUCTION

Havell’s India Limited was established in 1958 and is a part of the QRG group, a leading
solution provider in the power distribution-equipment industry in India. The company is one of
the foremost manufacturers and suppliers of low-voltage electrical equipment in the country.

Havells India was incorporated in 1983 is a billion-dollar company. It is engaged in


manufacturing of electrical and power distribution equipments. Havells has created brands like
Crabtree, Sylvania, Concord, Luminance, Linolite, and SLI Lighting that are known globally.

The Havells group originated as a small trading business in Central Delhi’s Bhagirath Place,
which is a wholesale market for electrical goods. It was promoted by Mr. Qimat Rai Gupta and
Mr. Surjit Kumar Gupta, who commenced their trading operations in the year 1958.

A former teacher in Punjab, the entrepreneur Qimat Rai Gupta bought the Havells brand from
one Haveli Ram Gandhi, thereby moving up from trader to manufacturer. The Company was
incorporated as Havells India Private Limited on 8th August, 1983 under the Companies Act,
1956 and subsequently the name was changed to Havells India Limited vide certificate dated
31st March, 1992.

This company manufactures electrical and power distribution equipments ranging from building
circuit protection, Industrial & Domestic switchgear, cables & wires, energy meters, fans, CFL
lamps, luminaries for domestic, commercial & Industrial application and modular switches.

Havells India Limited

Type: Public company


Traded as: BSE: 517354
NSE: HAVELLS
Industry : Electrical equipment
Founded : 1958
Founder : Qimat Rai Gupta
Headquarters : Noida, India
Key people : Anil Rai Gupta (Chairman& MD)
Products : Fast Moving Electrical Goods
Revenue: ₹6,720.24 crore (US$1.1 billion) (2017)
Operating income : ₹768.83 crore (US$120 million) (2017)
Net income : ₹539.04 crore (US$85 million)
Havells India owns some of the most
prestigious Indian brands like Havells,
Crabtree, Standard Electric, and
Promptech. The company has 23
branches / representative offices with
over 6,000 professionals in over 50
countries.As of 2016, it has 11 (2017)
Total assets : ₹4,959.99 crore (US$780 million) (2017)[2]
Number of employees : 6000

Divisions : LV Motors, Home and Kitchen


Appliances, Lighting, Consumer and Industrial
Switchgear,Cables and Wires, Electrical Equipment
Website : www.havells.com

VISION
To be a globally recognized corporation that provides best electrical & lighting solutions,
Delivered by best-in-class people
.

MISSION
To achieve our vision through fairness, business ethics, global reach, technological
Expertise, building long term relationships with all our associates, customers, partners,
and employees.
VALUES

Customer Delight:

A commitment to surpassing our customer expectations.

Leadership by example:

A commitment to set standards in our business and transactions based on mutual trust.

Integrity and Transparency:

A commitment to be ethical, sincere and open in our dealing.

Pursuit of Excellence:

A commitment to strive relentlessly, to constantly improve ourselves, our teams, our


services and products so as to become the best in class.
OBJECTIVES

 Reduce CO2 emissions


Develop and manufacture energy efficient products

 Improve environmental protection


Reduce hazardous substances and improve waste management

 Improve quality of life


Create sense of well-being with a superior quality of light

 Offer profitable aolutions to market


Better efficiency, sustainablily and longer product life
Company products
Havells manufactures products such as industrial and domestic circuit protection switchgears,
cables and wires, motors, fans, power capacitors, CFL lamps, luminaires for domestic,
commercial and industrial applications, modular switches, and bath fittings covering the

entire range of household, commercial and industrial electrical needs.

 Building Circuit Protection


 Capacitors
 Fans
 Bath fittings and Accessories
 Industrial Circuit Protection
 Lighting
 Modular Plate Switches
 Motors
 CFL
 Cables and Wire

 Building Circuit Protection


 Miniature Circuit Breaker
 Isolator
 Changeover Switch
 Residual Current Circuit Breaker
 RCBO
 Distribution Board
 Indicator Light
 Capacitors
 Normal Duty
 Heavy Duty
 Super Heavy Duty
 Agriculture Duty
 Motor Run Capacitors

 Fans
 Ceiling Fans
 Table Fans
 Wall Mounting Fans
 Pedestal Fans
 Air Circulator Fans
 Ventilating Fans
 Industrial Circuit Protection
 Air Circuit Breaker
 MCCB
 Panel Board System
 Changeover Switch
 By-Pass Changeover Switch
 Automatic Transfer Switch
 Switch Disconnector
 Load Changeover Switch
 Control Gear
 Switch Disconnector Fuse
 Fuse Switch and Switch Fuse
 Chamber System
 Fuse Holder
 Nylon Fuse Base
 Fuse Link and Fuse Base
 Lighting
 LED Lighting
 Consumer Lighting
 COmmercial Lighting
 Down Lighter
 Landscape-Bunker Lighting
 Industrial Lighting
 Area Lighting
 Road Lighting
 Speciality lamps
 Accessories

 Aura Lighting
 Modular Plate Switches
 Havells Modular Switches
 Crabtree Modular Switches
 Motors
 Foot Mounting Flange Motor
 Flange Motor
 Foot Cum Flange
 Inverter Duty Motors with Forced Cooling
 Crane Duty Motors
 Brake Motors
 CFL
 Retrofit
 Non Retrofit
 Higher Range
 Liliput
 FPL
 Cables and Wires
 Power Cables - Aluminium
 Control Cables - Copper
 Copper Flexible Cables
 Integrated service: AIL have the ability to provide customers with an integrated range of
 casting, machining and sub-assembly capabilities. The company makes a number of
 casting modules for engines and transmission components, which are typically
 complementary to each other. Moving down the value chain into casting has enabled the
 company to increase the product range, provide a budled service to its customers and
 control more effectively raw material prices, process and wastages.

MAJOR PRODUCTS OF CRABTREE:

 MODULAR SWITCHES RANGE


 THAMES
 PICCADILLY
 ATHENA

 UNDEFLOOR BOX
 CASA

 DIGITAL DIMMING AND ENERGY MANAGEMENT SYSTEM


 AURA PRO
 AURA IWD
 AURA IWS
 MOTION SENSOR
MERGERS & ACQUISITION

The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate
strategy, corporate finance and management dealing with the buying, selling and combining of
different companies that can aid, finance, or help a growing company in a given industry grow
rapidly without having to create another business entity.

Mergers and acquisitions are the third, and most widely used, vehicle that companies can use to
enter new industries or countries. How to implement structure, control systems, and culture to
manage a new acquisition is important because many acquisitions are unsuccessful. And one of
the main reasons acquisitions perform poorly is that many companies do not anticipate the
difficulties associated with merging or integrating new companies into their existing operations.

 CRABTREE

• Towers and Transformers Ltd in 1983.

• 1996 Joint Venture with Crabtree Modular Plate Switches, Duke Arnics, DZG Germany.

• LEARNING FROM MISTAKES: Lost bid for Electrium to Siemens by 8 million pounds.
Learned how to mobilize funding and to deal with complex issues of merger and acquisitions.

• GRAND TAKEOVER March 2007:-

• SLI SYLVINIA: 235.5 million Euros led by Barclays

Capital finances

• Entry into Europe, Latin America and Asia Pacific

Factors for Success:


1. International approvals: such as CSA, KEMA, CB, CE,

ASTA, SEMKO, SIRIUM (Malaysia), AENOR (Spain), etc

For its various products.

 Entry into international markets.


2. Strategic Alliances and Continuous enrichment of existing business

3. The production of Fans in tax free zones of

Uttaranchal

4. Integrating into stores

How Strategic the Acquisition was?

• Can keep existing manufacturing facilities in Europe, but will create additional capacities in
low cost India

• Havells substitute Chinese export to Sylvania

• Havells will leverage Sylvania distribution in Europe,

USA and Latin

• America for margin rich switch gear products

• Sylvania R & D practices can transform Havells

• Havells can use Sylvania multi brand strategy for different markets

"Sylvania's acquisition is a first step towards attaining leading position in the global lighting
industry with a strong presence in the developed markets of Europe and high growth Latin
American markets. This acquisition will provide us a platform with strong brands and established
distribution channels on which Havells can build on. Further, the management team responsible
for SLI Sylvania's turnaround will continue to remain with the business and grow the combined
organization"

"The management team is extremely excited about the Transaction and believes that SLI
Sylvania is well-poised to effectively exploit the opportunities ahead with significant synergies
to be realized by the combined organization”.
The value chain, also known as value chain analysis, is a concept from business management
that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive
Advantage: Creating and Sustaining Superior Performance.

A value chain is a chain of activities for a firm operating in a specific industry. The business unit
is the appropriate level for construction a value chain, not the divisional level or corporate level.
Products pass through all activities of the chain in order and at each activity the product gains
some value.

The chain of activities gives the products more added value than the sum of added values of all
activities. It is important not to mix the concept of the value chain with the costs occurring
throughout the activities. A diamond cutter can be used as an example of the difference. The
cutting activity may have a low cost, but the activity adds much of the value to the end product,
since a rough diamond is significantly less valuable than a cut diamond. Typically, the described
value chain and the documentation of processes, assessment and auditing of adherence to the
process routines are at the core of the quality certification of the business, e.g. ISO 9001.

The value chain categorizes the generic value-adding activities of an organization. The "primary
activities" include: inbound logistics, operations (production), outbound logistics, marketing and
sales (demand), and services (maintenance). The "support activities" include: administrative
infrastructure management, human resource management, technology (R&D), and procurement.
The costs and value drivers are identified for each value activity. The value chain framework
quickly made its way to the forefront of management thought as a powerful analysis tool for
strategic planning. The simpler concept of value streams, a cross-functional process which was
developed over the next decade, had some success in the early 1990s.

Six business functions of the Value Chain:

• Research and Development

• Design of Products, Services, or Processes

• Production

• Marketing & Sales

• Distribution

• Customer Service
Value chain analysis
The Value Chain

All of the functions of the company –such as production, marketing, R&D, service, information
systems, material management, and human resources-have a role in lowering the cost structure
and increasing the perceived value of the products through differentiation. The term VALUE
CHAIN refers to the idea that a company is a chain of activities for transforming inputs into
outputs that customers value. The process of transformation is composed of a number of primary
activities and support activities that add value to the product.

Primary Activities

Research & Marketing Customer

Development Production & Sales service

Company Information Materials Human

Infrastructure Systems Management Resources


Support Activities

Consistent value creation:

 Consistent profitable growth over the last 10 years 40%


CAGR

 Sales - 27x and PAT - 58x


 30 quarters of consecutive growth*
 10-year EBDITA and PAT CAGR in excess of 40%
 Organic growth led by gaining market share in existing
Products, launch of new branded, consumer products

 Significant brand emphasis to create a strong differentiator with FMCG like packaging,
promotions and advertisements.
 Consumer pull evenly matched with a well entrenched distribution network
 High RoCE and RoE creating shareholder value.

Buoyant end user segments:


 Infrastructure, power and construction key user segments.
 Significant investment planned with greater focus on
infrastructure development.

 Large investment in real estate and power sectors.


 Structural changes in the underlying buying patterns.
 Distinctive shift from un-organized to organized
Segment.

 Increased brand awareness for hitherto


commoditized products –wires and cables.

 Growing protection awareness.


 Increasing affordability and willingness to pay for
quality products.

 Large opportunities for quality, branded and well distributed product companies like
Havell’s.
SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning, including
SWOT and SCAN analysis, has been the subject of much research.

• Strengths: attributes of the person or company that are helpful to achieving the objective.

• Weaknesses: attributes of the person or company that are harmful to achieving the
objective.

• Opportunities: external conditions that are helpful to achieving the objective.

• Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. If the objective is NOT attainable a different objective must be selected and the process
repeated.

The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses,
opportunities and threats [citation needed]. It is particularly helpful in identifying areas for
development [citation needed].

Matching and converting

Another way of utilizing SWOT is matching and converting.

Matching is used to find competitive advantages by matching the strengths to opportunities.

Converting is to apply conversion strategies to convert weaknesses or threats into strengths or


opportunities.

An example of conversion strategy is to find new markets.


If the threats or weaknesses cannot be converted a company should try to minimize or avoid
them.

Evidence on the Use of SWOT

SWOT analysis may limit the strategies considered in the evaluation. J. Scott Armstrong notes
that "people who use SWOT might conclude that they have done an adequate job of planning and
ignore such sensible things as defining the firm's objectives or calculating ROI for alternate
strategies." Findings from Menon et al. (1999) and Hill and Westbrook (1997) have shown that
SWOT may harm performance. As an alternative to SWOT, Armstrong describes a 5-step
approach alternative that leads to better corporate performance.

These criticisms are addressed to an old version of SWOT analysis that precedes the SWOT
analysis described above under the heading "Strategic and Creative Use of SWOT Analysis."
This old version did not require that SWOTs be derived from an agreed upon objective.
Examples of SWOT analyses that do not state an objective are provided below under "Human
Resources" and "Marketing."

Internal and external factors


The aim of any SWOT analysis is to identify the key internal and external factors that are
important to achieving the objective. These come from within the company's unique value chain.
SWOT analysis groups key pieces of information into two main categories:

• Internal factors – The strengths and weaknesses internal to the organization.

• External factors – The opportunities and threats presented by the external environment to
the organization. - Use a PEST or PESTLE analysis to help identify factors

The internal factors may be viewed as strengths or weaknesses depending upon their impact on
the organization's objectives. What may represent strengths with respect to one objective may be
weaknesses for another objective.

The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities,
and so on. The external factors may include macroeconomic matters, technological change,
legislation, and socio-cultural changes, as well as changes in the marketplace or competitive
position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it
may tend to persuade companies to compile lists rather than think about what is actually
important in achieving objectives. It also presents the resulting lists uncritically and without clear
prioritization so that, for example, weak opportunities may appear to balance strong threats.

It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of
individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that
produces valuable strategies is important. A SWOT item that generates no strategies is not
important.

Use of SWOT Analysis


The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis
may be used in any decision-making situation when a desired end-state (objective) has been
defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT
analysis may also be used in pre-crisis planning and preventive crisis management. SWOT
analysis may also be used in creating a recommendation during a viability study.

SWOT - landscape analysis

The SWOT-landscape systematically deploys the relationships between overall objective and
underlying SWOT-factors and provides an interactive, query-able 3D landscape.

Changes in relative performance are continually identified. Projects (or other units of
measurements) that could be potential risk or opportunity objects are highlighted.

SWOT-landscape also indicates which underlying strength/weakness factors that have had or
likely will have highest influence in the context of value in use (for ex. capital value
fluctuations).

Corporate planning

As part of the development of strategies and plans to enable the organization to achieve its
objectives, then that organization will use a systematic/rigorous process known as corporate
planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business
and environmental factors.

• Set objectives – defining what the organization is going to do

• Environmental scanning

o Internal appraisals of the organization's SWOT, this needs to include an assessment of the
present situation as well as a portfolio of products/services and an analysis of the product/service
life cycle
• Analysis of existing strategies, this should determine relevance from the results of an
internal/external appraisal. This may include gap analysis which will look at environmental
factors

• Strategic Issues defined – key factors in the development of a corporate plan which needs
to be addressed by the organization

• Develop new/revised strategies – revised analysis of strategic issues may mean the
objectives need to change

• Establish critical success factors – the achievement of objectives and strategy


implementation

• Preparation of operational, resource, projects plans for strategy implementation

• Monitoring results – mapping against plans, taking corrective action which may mean
amending objectives/strategies.

Marketing:

In many competitor analyses, marketers build detailed profiles of each competitor in the market,
focusing especially on their relative competitive strengths and weaknesses using SWOT analysis.
Marketing managers will examine each competitor's cost structure, sources of profits, resources
and competencies, competitive positioning and product differentiation, degree of vertical
integration, historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required
to perform accurate marketing analysis. Accordingly, management often conducts market
research (alternately marketing research) to obtain this information. Marketers employ a variety
of techniques to conduct market research, but some of the more common include:

• Qualitative marketing research, such as focus groups

• Quantitative marketing research, such as statistical surveys

• Experimental techniques such as test markets

• Observational techniques such as ethnographic (on-site) observation

• Marketing managers may also design and oversee various environmental scanning and
competitive intelligence processes to help identify trends and inform the company's marketing
analysis.
SWOT Matrix

Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include:

• Patents

• Strong brand names

• Good reputation among customers

• cost advantages from proprietary know-how

• Exclusive access to high grade natural resources

• Favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:

• Lack of patent protection

• A weak brand name

• Poor reputation among customers

• High cost structure

• Lack of access to the best natural resources

• Lack of access to key distribution channels

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a
large amount of manufacturing capacity. While this capacity may be considered a strength that
competitors do not share, it also may be a considered a weakness if the large investment in
manufacturing capacity prevents the firm from reacting quickly to changes in the strategic
environment.
Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include:

• An unfulfilled customer need

• Arrival of new technologies

• loosening of regulations

• Removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of
such threats include:

• Shifts in consumer tastes away from the firm's products

• Emergence of substitute products

• New regulations

• increased trade barriers

Business SWOT Analysis

What makes SWOT particularly powerful is that, with a little thought, it can help you uncover
opportunities that you are well placed to exploit. And by understanding the weaknesses of your
business, you can manage and eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the SWOT framework, you
can start to craft a strategy that helps you distinguish yourself from your competitors, so that you
can compete successfully in your market.
\How to Use the Tool ?

To carry out a SWOT Analysis, start by downloading our free template. Then answer the
following questions:

Strengths:

• What advantages does your company have?

• What do you do better than anyone else?

• What unique or lowest-cost resources do you have access to?

• What do people in your market see as your strengths?

• What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point of view of your customers and
people in your market. Be realistic: It's far too easy to fall prey to "not invented here syndrome".
(If you are having any difficulty with this, try writing down a list of your characteristics. Some of
these will hopefully be strengths!)

In looking at your strengths, think about them in relation to your competitors - for example, if all
your competitors provide high quality products, then a high quality production process is not
sstrength in the market, it is a necessity.

Tip:

For help finding your company's Unique Selling Proposition (USP) or crafting your competitive
edge, read our USP Analysis article.

Key Points

SWOT Analysis is a simple but powerful framework for analyzing your company's Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your
strengths, minimize threats, and take the greatest possible advantage of opportunities available to
you.
Competitive Advantage
A company has a competitive advantage over its rivals when its profitability is greater than the
average profitability for all companies in its industry.

The goal of much of business strategy is to achieve a sustainable competitive advantage.It has a
sustained competitive advantage when it is able to maintain above average profitability over a
number of years.

Competitive advantage can come in one or combination of the following factors: Price, service,
quality, location, or imbedded customer base. The better your business performs against one of
these factors, the more likely you are to succeed.

Two basic types of competitive advantage:

• Cost advantage

• Differentiation advantage

A competitive advantage exists when the firm is able to deliver the same benefits as competitors
but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products
(differentiation advantage). Thus, a competitive advantage enables the firm to create superior
value for its customers and superior profits for itself.

Cost and differentiation advantages are known as positional advantages since they describe the
firm's position in the industry as a leader in either cost or differentiation.

A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a
competitive advantage that ultimately results in superior value creation. The following diagram
combines the resource-based and positioning views to illustrate the concept of competitive
advantage:
A Model Of Competitive Advantage:

Resources

Cost Advantage
Distinctive Value
Or
Competencies Creation
Differentiation
Advantage

Capabilities

Competitive Advantages in case of Crabtree Switches:

Quality is important in almost every industry. People do not like to pay good money for
work/product that has to soon be redone or have to purchase a new unit that fails prematurely.
By that I mean faster than expected. Over the long term producing higher quality is almost
always less expensive as you don’t have to deal with as many returns, or as much scrap, or
rework.

Crabtree focuses a lot on producing quality switches, which can be felt by usage of its switches.
Some of the key features that they offer in terms of quality are:

>Heavy plastic material


>Simple and bold Looks
>Safe locking system
>No Colour Fading
Crabtree offers a premium segment product, they are bought in the market because of the brand
equity they have created with their customer base.

Crabtree switches have a differentiation advantage. It has resources and capabilities which can be
ascertained on the basis of following:

• Patents and trademarks

• Proprietary know-how

• Installed customer base

• Reputation of the firm

• Brand equity

Even the advertisements of the company focus on their core competency that is producing
quality product and creating value.

Last but not the least, the company has created a value chain with the series of activities, which
has helped in creating value amongst the customer base.

HAVELL’S RESEARCH AND DEVELOPMENT

Research and Development

Innovation is the hallmark of every vital development at havell’s Group. New ideas, inventions
deepen scientific knowledge and give its work force a new impetus towards technical progress.

Havell’s technological strengths and its endeavor towards continuous research & development
have allowed it to fulfill its responsibilities towards its customers. The responsibility of
providing its customers the best products and zero defect services to enable them to be
comfortable and secure in usage of electricity. Havells has recently invested 50 crores in the
havell’s Center for Research and Innovation, set-up at the company's Head Office premises in
Noida, U.P.

The objective of this centre is to provide the theoretical & experimental foundations for all
segments of electrical engineering. The centre closely cooperates with the various departments so
as to provide the best and the latest in terms of technology and design.

Quality Control
The essence of quality is closely wrapped in the way they think, plan and work. It finds its true
expression when they extend beyond themselves to exceed our customer’s expectations. To
deliver products those are safer, faster and simply better.

Each time, every time. Building customer confidence through teamwork is a top priority to
provide a wide variety of products and services.

Realising and respecting the basic needs of customers to feel more secure, they’ve committed
themselves to make their products better, safer and smarter than what he or she is looking for.
That's a passion that began 30 years ago and that's how it continues to be even today. customers
rely on havells and it is responsible to give them the very best. All their products are as per IEC
standards.

Havells has a simple rule on quality. If it doesn't exceed customer expectation, it's not quality
performance.

HAVELL’S BUSINESS SEGMENT

Havell's India operates in the business of switch gear, cable & wire and

electrical consumer durables. This company is largest manufacturers of

MCBs, RCCBs and distribution boards in India. This company also

manufactures a comprehensive range of industrial switchgear products

including MCCBs, fuse switches, fuses, changeover switches, contractors

etc.

Havells produces a complete range of low and high voltage PVC and

XLPE cables besides domestic FR/FRIS wires, Co-Axial TV and Telephone

cables. The company is recognised as quality manufacturers of cable with a

major presence in the country, resulting in fast growth in volume. Havell's

has a strong brand name in electrical consumer goods and a brand leader in

compact fluoresce

Resources and Capabilities


According to the resource-based view, in order to develop a competitive advantage the firm must
have resources and capabilities that are superior to those of its competitors. Without this
superiority, the competitors simply could replicate what the firm was doing and any advantage
quickly would disappear.

Resources are the firm-specific assets useful for creating a cost or differentiation advantage and
that few competitors can acquire easily. The following are some examples of such resources:

• Patents and trademarks

• Proprietary know-how

• Installed customer base

• Reputation of the firm

• Brand equity

Capabilities refer to the firm's ability to utilize its resources effectively. An example of a
capability is the ability to bring a product to market faster than competitors. Such capabilities are
embedded in the routines of the organization and are not easily documented as procedures and
thus are difficult for competitors to replicate.

The firm's resources and capabilities together form its distinctive competencies. These
competencies enable innovation, efficiency, quality, and customer responsiveness, all of which
can be leveraged to create a cost advantage or a differentiation dvantage.

Cost Advantage and Differentiation Advantage

Competitive advantage is created by using resources and capabilities to achieve either a lower
cost structure or a differentiated product. A firm positions itself in its industry through its choice
of low cost or differentiation. This decision is a central component of the firm's competitive
strategy.

Another important decision is how broad or narrow a market segment to target.

Value Creation

The firm creates value by performing a series of activities that are identified as the value chain.
In addition to the firm's own value-creating activities, the firm operates in a value system of
vertical activities including those of upstream suppliers and downstream channel members.
To achieve a competitive advantage, the firm must perform one or more value creating activities
in a way that creates more overall value than do competitors. Superior value is created through
lower costs or superior benefits to the consumer (differentiation).

BOARD OF COMMITTEE

Havells India Limited is a Fast Moving Electrical Goods (FMEG) Company with an extremely strong
global presence, thanks to our philosophy of Make in India, extensive distribution network and world
class quality.

Audit Committee : Shri Surender Kumar Tuteja

Chairman : Shri Vijay Kumar Chopra

Member : Smt Pratima Ram

Member : Shri Surjit Kumar Gupta

Member : Stakeholders Relationship/Grievance Redressal


Committee : Dr. Adarsh Kishore

Chairman : Shri Surender Kumar Tuteja

Member : Shri Surjit Kumar Gupta

Member : Shri Anil Rai Gupta

Nomination And Remuneration Committee

Chairman : Shri Vijay Kumar Chopra

Member : Shri Surender Kumar Tuteja

Member : Shri Surjit Kumar Gupta

Corporate Social Responsibility Committee

Chairman : Shri Vellayan Subbiah

Member : Shri Surender Kumar Tuteja

Member : Dr. Adarsh Kishore

Member : Shri Rajesh Kumar Gupta

Enterprises Risk Management Committee

Chairman : Smt Pratima Ram


Member : Shri Anil Rai Gupta

Member : Shri Rajesh Kumar Gupta

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