Havells to Enhance Global Presence of Lloyd AC Through Export Market Expansion

New Delhi, Mar 19 - Havells, a prominent Indian firm known for its appliances brand Lloyd, is set to broaden its horizons in the international market within the residential air-conditioner segment. Following a significant expansion in production capabilities, which saw an investment of approximately Rs 400 crore in a new manufacturing unit at Sri City, Andhra Pradesh, the company now boasts a production capacity exceeding 2 million units annually. This development was shared by Havells India Executive Director Yogesh Kumar Gupta.

Representative image

The strategic location of the new plant near Chennai port has facilitated the company's venture into exporting room air conditioners to over 30 countries, including SAARC and African nations, and recently to the US market. Gupta emphasized the company's ambitious plans for global expansion, highlighting the importance of the second plant in achieving these objectives.

Despite exports not contributing significantly to Lloyd's revenue at present due to previously limited production capacity, Gupta is optimistic about the future. The focus is now shifting towards leveraging the enhanced production capabilities for both domestic growth and international presence. Additionally, Havells has reported double-digit volume growth in India's domestic market and anticipates a strong performance this year, particularly with a positive start in AC sales from Southern India.

Lloyd has also introduced over 120 new AC models this season, reinforcing its position as the third-largest player in India's residential AC segment. The company aims to increase domestic value addition to its products to 80%, aligning with its 'Make in India' vision. For the fiscal year ending March 31, 2023, Lloyd reported revenue of Rs 3,369 crore but faced a loss of Rs 221 crore.

The acquisition of Lloyd Electrical and Engineering Ltd by Havells India from BR Punj Group in 2017 for Rs 1,600 crore marked a significant milestone. With the Indian room AC market estimated between 8 to 8.5 million units, industry experts are optimistic about growth prospects, given the low penetration level in Indian households.