The Hindu Business Line : Havell's strives to emerge low-cost producer

HAVELL'S India Ltd, the flagship company of the Rs 700-cr QRG Enterprises, is planning to emerge as the `lowest cost producer' in each of its product range.

An end-to-end solutions provider in the power distribution equipment (PDE) space, Havell's, according to its Managing Director, Mr Anil Gupta, "would have the right cost structures to provide the right quality product. Quality level is the driving force today. So, when we offer products at relatively lesser price, there will be no compromise on quality standards''.

The company is striving to achieve these standards and levels by enhancing its production capacity and automating its product line.

In switchgear business for instance, the company has set up the second plant (next only to Delhi) at Himachal Pradesh at an outlay of Rs 16 crore. "The production capacity of the miniature circuit breaker (MCB) plant is 30 million units. We commenced operation of this plant last month. Last year, we produced and sold 12 million MCBs. We are targeting to sell 20 million this fiscal,'' Mr Gupta told Business Line.

In the cables and wires segment, Havell's has pumped in Rs 14 crore in capacity building and has set the turnover target at Rs 300 crore this fiscal, as against Rs 117 crore achieved last year.

According to him, the company has emerged as the first CFL (compact fluorescent lamp) producer to export this product that guaranteed 25000 hrs light to a UK-based company. It produces 0.5 million CFL pieces per month. This capacity is to be ramped up to one million units by December this year and further to 2 million by June 2005.

The company has been making rapid inroads into newer foreign markets. For the 2004-05 fiscal, it is targeting an export turnover of Rs 100 crore as against Rs 30 crore in the last financial year. To achieve this growth, it has set up a dedicated team to market its products.

"We have set up our office in Dubai and are looking at expanding our operations in the SAARC region. We are in the process of developing a brand to establish our position in the markets abroad,'' he said.

The company has bagged a couple of other orders worth about Rs 15 crore in all, for the supply of MCBs to Iraq and Spain. It had recently forayed into the Sri Lankan and Bulgarian markets.