Havells India Ltd

Dear Valued Shareholders, I am pleased to present the Integrated Report of your Company for FY 2024-25. Your Company sustained its long-term momentum of mid-teen revenue growth, despite a subdued consumer demand environment. The performance was driven by decent on-ground execution and market share gains.

Anil Rai Gupta

Chairman and Managing Director

At Havells, we believe that a sustainable organisation is built on a foundation of core values and culture. Our principles, shaped by the legacy of my father Shri Qimat Rai Gupta, continue to guide our actions and decisions. Even as we expand into new categories, geographies and channels, these values remain at the heart of everything we do.

Our obsession with customer-centricity drives us to deliver differentiated and high-quality products, providing lasting value to the consumers. The products are supported with in-house manufacturing and reliable after-sales service, even in the most remote parts of the country. We believe that the spirit of entrepreneurship amongst each of our employees continues to define our culture. We encourage an ownership mindset – where professionals act like owners and owners operate with professional rigour. We continue to take pride in fostering an open, humble and inclusive work environment, driven by empathy and not bound by hierarchies.

At the core is our commitment to ethical conduct, transparent ways of working and robust corporate governance.

This culture also empowers us to invest in key business capabilities, laying the groundwork for long-term stable growth and business resilience. Our business approach is to rely on strengthening our core, scaling new engines of growth while at the same time investing in future breakthroughs. This philosophy defines how we navigate the present while gearing for tomorrow.

Over the last few years, Havells has strategically undergone a phase of accelerated investments across key areas of business. Some of these investments may have been slightly frontloaded, leading to a step-up in operating expenses. However, we believe these were required to build capabilities and prepare the Company for the future. The investments powered brand-building through traditional and digital media, expanded our channel presence and bolstered R&D and manufacturing to further enhance growth.

Simultaneously, we made progress in digitisation to enhance business efficiency, while also investing in talent buildup across categories, channels & functions. With the growing relevance of alternate channels, we have expanded our talent pool in rural and semi-urban markets, modern retail, and have also built a ground force of In-Shop Demonstrators (ISDs), leading to improved throughput from these formats.

With a majority of these investments now having reached a decent level, your Company is well-poised to capitalise on the platform created. While areas like R&D and manufacturing will continue to see incremental outlay, the broader focus will be now on sweating these investments to drive growth, operating leverage and improving margins across businesses.

We have already begun to see the benefits of our recent initiatives, with the Lloyd brand gaining steady traction in the market. During the year, Lloyd's association with new channel partners reflects its growing brand strength and wider acceptance. At the same time, Havells and its other brands continued to enhance their positioning across categories in respective consumer segments.

New product development remained a key focus, backed by R&D and consumer insights. Notable launches during the year included India's first AI-powered designer air conditioner, distinctive home art lighting and the next-generation BLDC+ fans.

On the digitisation front, internal process improvements were complemented by customer-facing initiatives such as strengthening of our direct-to-consumer (D2C) portal and launch of a unique loyalty programme - Havells Happiness, enhancing the overall customer experience. A deep talent pool across emerging categories and channels have played a vital role in driving scale and market share gains in these growth areas.

As part of our ongoing commitment to sustainability and responsible corporate governance, we made meaningful progress in integrating ESG principles into our operations. Our ESG strategy is aimed at creating long-term value for our stakeholders while contributing positively to the environment and society.

We continue to reduce our carbon footprint through energy-efficient technologies and sustainable resource management, with the goal of achieving a significant reduction in greenhouse gas emissions in the coming years. We are also aligned with the Net Zero targets aimed at reducing carbon emissions. Product Lifecycle Assessment (LCA) journey has been initiated to support our product sustainability roadmap and internal targets have also been set across key areas such as climate resilience and workplace safety.

With a commitment towards the society, we are fostering an inclusive, safe and equitable workplace. We continue to support communities through charitable partnerships and employee volunteerism. To support the education for all at the grassroot level, our mid-day meal initiative continued to make a meaningful impact. I am proud to share that this year, the initiative crossed a significant milestone of 100 million meals served since inception. We further scaled our efforts in the area of menstrual health & hygiene with the distribution of over 2,30,000 sanitary kits and conducting regular awareness workshops under Project Baala.

With an aim to nurture young minds to contribute meaningfully to society and India's development, during the year, your Company partnered with Ashoka University to establish Havells School of Management & Leadership under Ashoka University.

We enter FY 2025-26 with optimism as recent policy measures by the government, including income tax rate reductions and monetary policy easing, are expected to support consumer sentiment and discretionary spending. While infrastructure & industrial investment driven demand continues to remain strong, we also expect the demand from past real estate launches to gradually percolate through the ecosystem, supporting growth in associated categories. However, elevated commodity price volatility and global trade uncertainties remain key risks to business performance.

Backed by a diversified portfolio and recent investments, your Company is well positioned to tap into opportunities across end-markets and create sustainable value for all stakeholders.

In closing, I would like to express my sincere gratitude to our Board of Directors, employees, customers, channel partners, suppliers and shareholders. Your continued trust and support have been instrumental in shaping our growth journey.

Regards,

Anil Rai Gupta

Chairman and Managing Director