After acquisition by Havells India, Lloyd eyes ₹3,000-crore turnover

After acquiring the Lloyd brand of consumer durables early this year, Havells India is targeting sales of ₹3,000 crore from the white goods category.

Nipun Singhal, CEO - Lloyd, Havells India, said: “Havells is a debt-free company and its healthy balance sheet will help us to complete the integration exercise fast, which will involve merging operations such as procurement, HR, IT, logistics and warehousing. Additional capacity is also being currently put in for manufacturing at its Neemrana facility to make televisions and air conditioners, and we are targeting a turnover of ₹3,000 crore from the consumer durable business this year.”

Currently, Lloyd’s sales turnover stands at ₹2,000 crore, which has now been added to the much larger ₹6,300 crore of Havells India.

In the past, Lloyd had its own manufacturing facilities and also did OEM (original equipment manufacturer) contracts for competitors such as Voltas, Whirlpool and Godrej, when it belonged to BR Punj Group.

“Havells did not acquire Lloyd’s manufacturing facilities since it was outdated. Now we are manufacturing our televisions at modern facilities belonging to Havells at the Neemrana plant, which has a capacity of making 6 lakh televisions per annum,” he added.

Besides, Havells will be more than doubling its retail network of exclusive brand outlets from the current 120 shops to 300, which will be dealer-owned and operated.

However, it will be not be possible to ride on the distribution strengths of Havells since it has a base of electrical dealerships which is different from a consumer durable distribution network.

And, Lloyd is also not keen to sell its products online, as it does not believe in giving discounts and has less than 1 per cent of its sales coming from this channel.

“We have an affordable luxury or mass premium positioning in the consumer durable category and do not want to be selling at cost price by going online.”

Lloyd air conditioners already occupies a number two slot in the category at 14 per cent volume share after market leader Voltas, which is at 20 per cent.

“We have managed to push back Korean companies such as LG to the number three position with a 11 per cent share in air conditioners,” claimed Singhal.

But, in categories such as televisions and washing machines, it is yet to make a mark since it has volume shares at 4.5 per cent and 3.5 per cent, respectively.

Llyod’s began its journey in India as a joint venture under Fedders Lloyd in 1956, but became a solo brand in 2007 when Fedders went bankrupt in the US, and was owned by BR Punj Group till it got acquired by Havells India in February 2017.

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