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Greetings from Havells!
I am delighted to once again be a bearer of good news and report another year of good performance at your company. The current economic situation in India and EU is weak and these are not the times when we can continue with Business as usual. At Havells, we have taken on the responsibility to rewrite the rules of the game and redefine consumer experience so that the relationship with our customers becomes a rewarding one.
Our product strategy continues to focus on investing in product lines where we have a clear differentiation and a beneficial value proposition. During the year, we further strengthened our domestic appliances range and emerged as the #3 brand in the industry in less than 2 years of its launch. In our premium product segments, we continue to benefit from price leadership based on our enhanced value proposition. Today, Havells brands deliver top of the mind recall.
Our consumer strategy has been to align ourselves closely with our customers and maintain direct contact with them. Havells Galaxy is a concept that is two years old and is well accepted in the market. The increased retail footprint of Havells Galaxy chain of stores has not only increased our presence across different markets but also resulted in increased flow of revenues from this channel. But more important than the numbers is the fact that this enables us to connect our manufacturing infrastructure directly to our customers, giving way to a more responsive and service oriented operating system.
Our distribution chain is our strength and we continue to invest in deepening our relationship with our trade community. With the launch of our Reo brand of conventional switches we have made inroads into the rural market where discretionary spending is low. These premium entry level switches are an easy entry point for rural consumers seeking to benefit from the Havells value proposition. Our extended distribution network will enable us to introduce more products to more market segments, thus enabling our trade to grow with us.
In manufacturing, we continue with our strategy to invest in capacity, quality and precision systems. We are fast reaching the point where all our products will be manufactured in–house under our close supervision. During the year, we set up our lighting fixtures plant at Neemrana which is the first large scale lighting fixtures plant of the country. Equipped with most modern technology and infrastructure, the plant boasts of India's first roll forming and robotised bending machines. Similarly, our Baddi plant is amongst best switches and switchgear plant globally and currently is in the process of doubling its production capacity. We are also in the process of integrating our research and development capabilities globally.
Our people strategy has always been to recruit and retain people with leadership qualities. We invest in our people and believe they are one of the major reasons for our success. We believe that growth of our people precedes the growth of the company. We promote leadership within our ranks by offering people greater responsibility with the freedom to perform to their best. Our people policy has always been fair and we operate in an atmosphere where talent is respected and achievement rewarded.
In our branding, we have been closely associated with Cricket and 1PL since its inception. This has helped us take our brand to the interiors of India. During the past five years, our spends on advertising have made us the largest advertiser in the Indian Electrical Industry.
Each of these initiatives has contributed to our results.
In the year in review, our topline increased by 11% to Rs. 7248 crores. Over the past 5 years, we have been growing steadily at 17–20% year on year.
We look at the future with optimism. On reflection, the one thing that is clear is that the wondrous rise and the outstanding achievements would not have been possible without your understanding, encouragement and continuing support. It has given your company stability, sense of direction and shared vision of the future.
We believe in building relationships through trust and faith in a manner which is totally transparent. Our ethics and code of behaviour are not negotiable; we respect the rights and dignity of the human being and believe in every individual's limitless ability to excel. These are values which have endured since the company was founded.
I would like to thank our people, across the world, who have helped us grow in a virtuous fashion. My sincere thanks to the Board, whose sagacious advice has kept us on the path of progress, and lastly, our trade associates, who have made everything possible by their dedication and commitment.
Qimat Rai Gupta