Havells India, a leading manufacturer of electrical goods and electronics, has made a significant stride into the Middle East market with the launch of its consumer durable brand, Lloyd. With a robust presence across 70 countries, the company is expanding its footprint in the Middle East, aiming to tap into the cooling products market in the United Arab Emirates (UAE).
The launch portfolio of Lloyd in the UAE includes a premium range of air conditioners (ACs), including fixed-speed, inverter, and hot & cold variants. Additionally, the brand will offer front-load and semi-automatic washing machines, frost-free and side-by-side refrigerators, along with an array of LED TVs.
Anil Rai Gupta, the Chairman & Managing Director of Havells India, conveyed his excitement by expressing that their steadfast commitment endures in expanding their international footprint, emphasising their pride in “Making in India for the world.” He conveyed their thrill in introducing Lloyd to the discerning consumers of the Middle East.
Despite Lloyd’s impressive revenue growth of 19.5 per cent to Rs 1,808 crore during the first half of FY2024 (April-September 2023), the brand reported a Rs 136 crore loss at the EBIT level, indicating a negative 7.5 per cent EBIT margin. However, industry analysts suggest that Lloyd has witnessed a sequential increase in market share in the room AC segment during the July-September quarter, constituting 50 per cent of its sales during this period.
Praveen Sahay, lead research analyst at Prabhudas Lilladher, believes that Lloyd, along with ECD (Electrical Consumer Durables) and W&C (Wire & Cables), stands poised for growth due to positive market indicators such as an uptick in residential demand, declining inflation, stable commodity prices, and sustained B2B demand from infrastructure and construction sectors.
Geojit BNP Paribas projects Havells India to achieve a 13 per cent year-on-year sales growth, crossing the Rs 19,000 crore revenue mark in FY2024.
In line with this expansion, Havells India has partnered with ‘TeknoDome’ for Lloyd’s distribution in the Middle East. The brand aims to introduce technologically advanced and energy-efficient products, strategically planning their availability across the region in a phased manner.
The company’s stock rose nearly 1 percent following the announcement of Lloyd’s launch in the Middle East market. Market analysts at UBS have recommended a ‘buy’ rating on Havells India stock, setting a target price at Rs 1,900 per share, emphasising the potential growth prospects fueled by the company’s commitment to in-house manufacturing and product quality.
To bolster its presence, Lloyd plans to commence its marketing campaign in December, enlisting actors Tamannaah Bhatia and Mohanlal as brand ambassadors for the Middle East region. Havells India continues to maintain a steadfast focus on international expansion, leveraging the success of its homegrown brand Lloyd to cater to the evolving preferences and lifestyle demands of consumers in the Middle East.
