Havells is now making in India for the world: Sandeep Agarwal

Home
Articles
Havells is now making in India for the world: Sandeep Agarwal

Havells is now making in India for the world: Sandeep Agarwal

Articles
Feb 07,25

In this interview with Manish Pant, Sandeep Agarwal, VP - Industrial Products, Havells India, highlights emerging trends in the energy sector and the company’s growth plans.

Havells is now making in India for the world: Sandeep Agarwal

Homegrown companies are aligning their approach to manufacturing high-quality products to meet global demand. Sandeep Agarwal, Vice President of Industrial Products at the Rs 186 billion Noida-based electrical equipment maker, Havells, shares insights with SME’s Manish Pant.

What are the emerging trends regarding demand in the electrical business?

India, the third-largest electricity producer globally, is seeing significant investments in its $500 billion electrical industry. The electronics sector, valued between $100-400 billion, is driving growth. Industry 4.0 is enhancing efficiency and speed in production. Nearly 45 per cent of electricity is from renewable sources. All these developments necessitate redesigned electrical systems.

How is the emergence of new technologies disrupting the sector?

New technologies are bringing both opportunities and challenges. Renewable energy, especially solar power, is a major disruptor, requiring the integration of smart grids. Automation and the blending of renewable and fossil fuels have transformed the landscape. Twenty years ago, exporting power was uncommon; today, it’s routine, showing the national grid’s evolution. Advanced technologies have reduced grid issues like frequency changes. The plummeting costs of solar power have pressured traditional power generators like NTPC to adapt. Energy storage, particularly large-scale lithium-ion batteries, has become crucial for better energy management and utilisation. These advancements have disrupted energy management and delivery.

How are these developments impacting the electrical sub-segment?

The electrical sub-segment is rapidly evolving due to technological advancements. These changes enhance power generation, transmission, and distribution. On the generation side, efficiency has improved significantly, with transformers achieving over 95-98 per cent efficiency. The industry has transitioned from 200 (megawatt) MW thermal plants to 800 MW supercritical thermal plants due to digitalisation. This increased generation capacity has necessitated advancements in transmission, with a shift towards DC (direct current) transmission to reduce losses. Modern technologies have also significantly reduced downtime, with innovations like chip card replacements in protection devices streamlining operations.

To what extent are Havells production lines meeting the demand from the renewable energy segment?

The company has developed large-scale cable and flexible wire manufacturing, essential for energy transmission. On the switchgear side, Havells has introduced solutions for DC and high-voltage applications. Additionally, the company has integrated solar inverters into their product lines, establishing dedicated manufacturing lines for renewable products. Although quantifying the exact contribution to renewable energy is challenging, it’s estimated to be around 2-3 per cent of the overall production. Most Havells manufacturing plants prioritise sustainability, with 45 per cent of the R&D budget dedicated to renewable energy initiatives. The company aims to reduce its carbon footprint by 50 per cent by 2030, with 8 per cent of its factory power currently sourced from renewable energy. Havells’ commitment to sustainability extends to both industry and in-house operations.

What segments do you see driving growth in the medium and long term?

The automotive sector, particularly electric vehicles, will drive significant growth, with the industry expected to grow in double digits and electric vehicles by 4 to 5 times. India aims to increase renewable energy installed capacity from 200 GW to 500 GW by 2030. Infrastructure development, especially in tier 2 and 3 cities and smart cities, is another key growth area. The hospital industry is expanding due to government initiatives, and the data centre sector is expected to boom with increasing demand for data storage. These segments are the focus areas for Havells, with products being developed accordingly by our R&D team.

With India being accepted as the leader of the Global South, homegrown companies like Havells would be an integral part of the country’s geopolitical outreach…

Definitely! In the past, our focus was primarily on the Indian market. Today, when our R&D team sits down, we place a global map on the table and consider what is needed worldwide. Our outlook has shifted from purely domestic to a global perspective. We have already started operations in the US, and we are expanding into Europe as well. Previously, our focus was on the Middle East and Africa.

When you talk about manufacturing, how well have programmes like Make in India and PLI (Production Linked Incentive) worked for you?

The Make in India initiative has been a significant growth booster for us. Earlier, like many industries, we faced challenges from low-cost Chinese products. Until a few years ago, Chinese competitors caused considerable disruptions. The government’s Make in India initiative has levelled the playing field, supported by the QCOs (Quality Control Orders), similar to the ISI (Indian Standards Institute) mark, ensuring quality standards. This initiative has encouraged even multinational companies to establish plants in India. Customer buying behaviour has shifted, and now products made in India are highly regarded.

Recently, we established two new plants in the south, adding to our existing 14 plants, primarily in the north. One plant focuses on cable production, while the other on air-conditioning. The PLI scheme further supports our production capabilities, enabling us to compete globally and export products. Our new plants prioritise advanced technology and automation for rapid production. The focus is not only on the Indian market but also on global demand, reflecting a shift in our thought process towards a global market perspective.

That would also require a fair amount of reskilling of the workforce. How are you addressing this aspect?

Reskilling the workforce is indeed a crucial aspect. At Havells, we emphasise both in-house training and corporate responsibility initiatives. Last year, we dedicated around 65,000 learning hours to our team, focusing on new technologies and advanced working methods. These programmes cater to everyone, from workers to supervisors to white-collared employees, enhancing their technical skills. Additionally, we collaborate with external organisations like the Electronics Sector Skills Council of India (ESSCI) through our ‘Maharath’ (expertise) programme. This partnership aims to improve the skills of marginalised individuals, including electricians. Last year, we trained around 7,000 people. We also associate with it is (Industrial Training Institutes) in Delhi and Assam to help electricians upskill their knowledge, particularly in the maintenance and repair of equipment blending digital technologies. These efforts ensure our workforce is well-equipped to handle the evolving demands of the electrical industry.

Where do you see the industry headed over the next five years?

With everyone looking at India today, the country will become the epicentre of global demand. Therefore, we are in a transition phase, where developments in the sector will happen at a much faster phase. Renewable energy will be huge. Electrical vehicles will leave the automotive industry completely transformed. The country’s pursuit of achieving net zero emissions by 2070 will become more aggressive with manufacturers also looking at developing sustainable products that are RoHS (Restriction of Hazardous Susbstances)-compliant. Besides, the upcoming regulations are increasingly emphasising safety and reliability. With what we make here now getting exported to Europe and the Americas, we are now focusing on quality products.

And what about Havells?

Havells now wants to be seen as not just a major B2C but also a credible B2B player. Today, most of the companies in the latter segment are MNCs. But if you look at it, earlier, the B2C segment from lighting to electrical was also dominated by MNCs. However, you only have Indian companies in the domain today. We have the same vision for B2B. We are working with a global vision. Not many know that Havells has a big R&D setup comprising over 1,000 engineers. Out of that number, nearly 400 are only working on digital technologies. Digitalisation is the future and we want to be future-ready!