Havells India aims to make ‘Standard’a INR 1,000-crore brand in two years

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Electronics major Havells India is looking to propel its brand ‘Standard’ on a faster growth trajectory, as part of its multi-brand strategy. The company hopes to make Standard a ₹1,000-crore brand in the next two years. Standard, which generated revenues of about ₹400 crore in the last fiscal, has a presence in various categories such as fans, cables, switches and switchgears, among others.

Abhra Banerjee, Vice-President, Havells India, said: “In the last two years, Standard has emerged as one of the fastest growing FMEG (fast moving electronic goods) brands. Last year, the sales for Standard grew by 32 per cent and this year we are targeting a 50 per cent growth. We aim to make it a ₹1,000-crore brand by FY20.”

Younger consumers

Unlike brand Havells, which appeals to more affluent and older consumers, with Standard, the company aims to woo younger and more upwardly mobile users. “We felt that we were not addressing the needs of younger consumers and hence since the past two years, we have been focusing on sharply positioning Standard as a brand that understands the needs and aspirations of the younger audiences, who are typically first-time home buyers,” he added.

Havells India believes that nearly 50 per cent of Standard sales will come from smaller cities and towns in the next two years. The company is stepping up distribution of the brand in tier 1-5 towns. It has also developed a separate distribution channel and is trying to create a differentiator through product design, bold colours and features.

“We are also ramping up the number of exclusive brand shops. We hope to have about 100 brand shops operational by the end of this year,” he added.

Meanwhile, the company is looking at adding more categories under the brand. “We plan to expand the brand’s product range with the introduction of water heaters by the end of this year. We could also look at introducing air coolers under the brand in the long term,” Banerjee said.

Pan-India brand

Originally known for its switchgears with a stronghold in the Southern region, the company has over the past few years been focusing on becoming a pan-India brand.

“While the Northern region contributes nearly 40 per cent of the sales and States like Uttar Pradesh and Delhi have been growing well, the Southern region now contributes about 27 per cent to our sales, and the Eastern region contributes about 24 per cent. The balance comes from the West,” Banerjee added.

(Source: www.thehindubusinessline.com)

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