Noida-based electrical equipment maker, Havells India, is hoping for a revival in its fast-moving electrical goods (FMEG) business that contributes 25-26 per cent of the firm’s overall revenue. Havells, which reported a relatively weak October-December (Q3) quarter, is expecting green shoots in the FMEG segment in the next quarter as well as fiscal on the back of advanced tech-based home solutions launches, Ravindra Singh Negi, president (electrical consumer durables), Havells India Limited, told this publication.
The company’s revenues slumped by nearly 10 per cent at `2,200 crore in Q3FY20. Unlike its cables and lights segments that saw low single-digit growth, the FMEG products including domestic circuits, power capacitors, modular switches, water heaters, LED television, washing machines and air conditioners posted modest double-digit growth, although the revenue slipped there as well.
“We have begun to see green shoots in the segments like FMEG. Though Q3 has been a slow quarter for us at Havells, we are seeing traction for our products building up, particularly for water heaters and other seasonal devices,” Negi said.Havells has also focused on the businesses to build smart home solutions, which according to Negi could drive its FMEG businesses and result in better fourth quarter results.
“It’ll be too early to comment, but we are optimistic of a better Q4 performance. That’s why we have lined up new product offerings based on new Internet of Things tools that provide a personalised and more efficient experience to clients,” he said.According to Negi, overall slowdown in the infrastructure sectors, coupled with reduced consumption, affected Havell’s businesses as customers became pickier when it came to spending last year.
“The consumers want value in the products and therefore, the companies are realigning their strategies to build next-gen, personalised solutions,” Negi added further. Although the brand Llyod, under which Havells sells its air conditioners and LED televisions, also reported a drop in the revenue, Negi said he is expecting high double-digit growth for the segment.