In a significant move, Havells India has begun selling made-in-India air conditioners (ACs), cables, and lighting products, including luminaires, in the United States, marking its debut as the first Indian electronics manufacturer to launch its own brand in the American market. This milestone was announced by Anil Rai Gupta, the chairman and managing director of Havells India.
To support this expansion, Havells is set to invest Rs 1,000 crore this year to enhance its manufacturing capacities for cables, refrigerators, lighting, and fans, while also exploring the possibility of manufacturing AC compressors. This follows an investment of around Rs 700 crore in capital expenditures during the 2023-24 fiscal year.
In the US, Havells has introduced ACs under its Lloyd brand, which are currently available through the e-commerce platform of Lowe’s, a major American home improvement retailer. Electrical cables and luminaires are sold under the Havells brand.
Gupta revealed that Havells is in the process of establishing two joint ventures in the US with two separate distribution companies, where Havells India will hold a 75-90% ownership stake. One joint venture will focus on the sale and distribution of ACs, while the other will concentrate on luminaires. “We aim to build a brand in the US based not only on price but also on technology. Our team will now focus on product development for the US market over the next two years. The market there is expanding,” Gupta said.
Havells has set up its US base in New York and has hired a local team for product development and customization to meet US standards. This is the first overseas market where Havells has established its own base, despite already exporting products worth nearly $80 million. For ACs, the company is targeting certified installers, as US regulations require AC installations to be performed by certified professionals.
Executive Director Rajiv Goel highlighted that the Inflation Reduction Act of the US includes provisions for ACs, presenting a long-term opportunity for the company. He projected that within the next 4-5 years, the US market could contribute 35-40% of Havells’ total international business.
“The US market offers significant learning opportunities. Indian consumers, particularly those in the upper economic strata, have global aspirations. This foray into the US market could help us develop products aimed at high-end consumers in India,” Goel noted. He pointed out that affluent Indian consumers, with incomes of $80,000 to $100,000 per capita, seek experiences akin to those in developed markets.
Domestically, the Lloyd brand is a leading player in the AC segment and is expanding its presence in categories such as refrigerators, washing machines, and televisions. In the 2023-24 fiscal year, Havells India reported sales of Rs 18,550 crore, a 10% year-on-year increase, with a net profit rise of 18% to Rs 1,273 crore. The Lloyd consumer durables business achieved Rs 3,785 crore in sales for FY24, with losses reduced to Rs 164 crore from Rs 222 crore in FY23.
