Havells plans to penetrate Tier-II, Tier III cities in TN with launch of REO brand of switches

Chennai:

The $1.3 billion Fast Moving Electrical Goods (FMEG) company Havells India is planning to expand its operations in Tamil Nadu by targeting to penetrate into Tier-II and Tier-III cities this financial year.

Addressing a press conference here on Tuesday, Anil Bhasin, senior vice-president of Havell’s India Limited said that with the launch of REO, the first premium convesntional switch in the non-modular switch market, the company will spread and strengthen its network in Tier-II and Tier-III market lies.

Currently, the company has direct presence in 50 towns and it plans to add another 60 towns with a population of 50,000 in the current financial year,” said Bhasin.

Interestingly, the company is also planning to appoint 60 more dealers or distributors to existing 400 dealers or distributors across the state.

Bhasin also said that Havells will also double its production capacity at the Baddi plant in Himachal Pradesh where all switches and domestic switchgear products are manufactured including REO switches in line with its expansion plans. “Currently, Baddi plant manufactures 5lakh stock keeping units (SKUs) a day which will be taken to one million SKUs a day in next two to three months,” he said.

Bhasin also ruled out Chinese switch manufacturers as a threat to his products. He said that Havells has gained a name in the western nations for the quality of their products. Interestingly, the company also has a joint venture with Chinese based company.