Switchgear to consumer electrical appliance maker Havells India is repositioning Standard as a youth-centric brand in city markets and as a “value for money” proposition eyeing tier-II to V markets.
Standard – previously a switchgear maker – was acquired by Havells in 2000. Since 2014, the QRG Group-owned company (Havells) started focussing on its acquired brand and the subsequent repositioning. Apart from switchgear, modular switches and wires, Standard’s portfolio now includes fans and water heaters (geysers). It contributes around ₹400 crore to Havells India’s ₹6,000 crore turnover.
According to YK Gupta, Associate Director, Havells – owners of Standard – plans are afoot to increase the product categories. The categories will be finalised over the next one year.
Havells, on the other hand, will be in the mass-premium segment.
“In some markets Standard may compete with Havells. But, we are placing it at a value for money offering targeting Tier-II to Tier-V markets. One thing is clear, we are not placing Standard mere as a mass brand,” Gupta told BusinessLine .
₹1,000-crore brand
In fact, the company has tried to ensure that Standard and Havells do not cannibalise one another. Of the 2,500-odd distribution network that Standard has, nearly 80 per cent of it does not deal with the mother brand.
Although on a smaller base, Standard has seen a near 22 per cent compounded annual growth over the last three to four years and turnover doubled during this period.
“We are confident over a 2.5 times jump in turnover to ₹1,000 crore in the next three to four years,” Gupta added.
In order to bring in economies of scale, Standard will use Havells’ manufacturing facilities. The latter’s plants have a separate production line installed for Standard.
For example, Standard uses Havells’ Baddi plant for making switchgear and modular switches, while the geysers are made at the Neemrana plant.
Similarly, Havells’ Haridwar unit is leveraged for the fans range.