Havells to launch Standard brand fans
Feb 12 2014 , Chennai
Standard, Rs 300 crore brand of switchgear and domestic cables, will shed its mass-market positioning while getting into the fan space. The company hopes to garner Rs 100 crore in the coming fiscal from Standard fans and in three years, the target is to double the turnover of the brand to Rs 600 crore across switches, fans and cables.
The company is positioning Standard fans in the premium segment, which is valued around Rs 3,000 crore of the Rs 4,500 crore organised fan market in India. The company already has Havells in the premium category with a turnover of Rs 700 crore.
“Standard will not cannibalise Havells as we will have different dealer networks for both. Further, the consumers are looking for more choice in the segment,” said Narendra Choudhary, senior vice president, Havells India.Premium segment, which used to occupy 10 per cent of the market six to seven years back, now accounts for 30 per cent, growing at a rate 15 to 20 per cent.
Standard fans will be manufactured at Havells India’s Haridwar plant, which has a capacity to produce seven million fans a year.
“We are manufacturing all our fans within the country now. Earlier some of the table, wall and pedestal fans were imported from China. Compared to imported ones, the margins of domestic manufactured fans are 10 per cent higher,” said Choudhary.