Havells India Expands Solar and EV Opportunities as Energy Transition Creates New Growth Drivers; Has Invested INR 4,000 Crore in Manufacturing Expansion

Havells India Expands Solar and EV Opportunities as Energy Transition Creates New Growth Drivers; Has Invested INR 4,000 Crore in Manufacturing Expansion

The Electrical Post

Havells India Limited is strengthening its presence in cables and renewable energy while expanding its research and development (R&D), manufacturing and brand-building capabilities to support long-term growth. Despite sustained demand in its cables business and encouraging progress in solar rooftops, the company faced margin pressures during FY 2025–26 due to lower revenue from cooling products, which resulted in under-absorption of fixed costs.

In his message in the company's 43rd Annual Report for FY 2025–26, Anil Rai Gupta, Chairman and Managing Director of Havells India Limited, highlighted the company's focus on strengthening its core businesses, scaling emerging opportunities and building capabilities for sustainable growth amid evolving market conditions.

The cables business delivered robust growth, supported by sustained demand, benefits from recent capacity expansion and the pass-through of raw material prices. Havells also reported encouraging progress in its renewable energy initiatives, particularly solar rooftop solutions, which are emerging as an important growth driver aligned with India's energy transition ambitions.

The company has leveraged investments made over recent years to strengthen operational capabilities, improve productivity and maintain cost discipline. However, declining revenue in cooling products affected operating leverage and margins. Towards the end of FY 2025–26, geopolitical developments in West Asia added to global uncertainty, affecting energy prices and supply chains. India also faced pressure from rising commodity prices, higher logistics costs and increased import-linked input costs due to the depreciation of the rupee.

Against this backdrop, Havells is reinforcing its diversified business model and organisational approach under its philosophy of “One Havells, Many Possibilities.” The company considers simplicity, transparency and consistency essential to its next phase of expansion. Its recently introduced unified channel engagement framework, “ONE Havells,” is designed to standardise structures across categories and brands, improve clarity for channel partners and support sustainable growth and profitability.

The framework is intended to strengthen the distribution ecosystem and make engagement with the company simpler and more consistent. Havells aims to extend this philosophy beyond channel management by simplifying processes and creating opportunities for stakeholders to grow alongside the business.

Brand building remains another key priority. The company continues to invest in expanding its reach, strengthening its aspirational positioning and generating consumer demand across markets. As part of this strategy, Havells and Lloyd associated with the Indian Premier League (IPL) 2026 as co-presenting sponsors across television and connected television platforms. The company has also expanded its presence across digital and influencer-led platforms, complemented by national and regional brand ambassadors.

Havells plans to sustain its brand investments to reinforce long-term brand equity and strengthen consumer engagement across its product categories.

Innovation is central to the company's strategy of developing premium, differentiated and consumer-focused products. Havells has consistently invested more than 1% of its revenue in R&D and intends to increase this commitment meaningfully over the next few years. As part of this effort, it is establishing a state-of-the-art R&D campus in Noida, expected to accommodate approximately 2,000 R&D professionals working on product development and innovation across categories.

The company is also accelerating the adoption of artificial intelligence (AI) to improve productivity, product quality and consumer experience. Global collaborations and the recruitment of specialised talent are expected to strengthen its innovation capabilities and support the development of differentiated offerings.

Manufacturing remains a key competitive advantage for Havells, particularly in maintaining product quality, operational control and long-term scalability. Over the past five years, the company has invested approximately INR 4,000 crore in reinforcing and expanding its manufacturing capabilities. These investments are intended not only to support current business growth but also to strengthen competitiveness and prepare the organisation for future demand.

Alongside its established businesses, Havells is expanding into emerging opportunities linked to India's energy transition. Its renewable energy portfolio is being developed through a wider solar rooftop offering and entry into categories such as solar pumps and electric vehicle (EV) chargers.

During FY 2025–26, the company made a strategic investment in Goldi Solar, one of India's leading solar panel manufacturers. The partnership is expected to strengthen the supply of quality solar panels and provide greater supply stability, with Goldi also planning to expand its cell manufacturing capacity. The move supports Havells' ambition to develop its renewable energy business and participate more actively in the expanding solar market.

Looking ahead, the company is closely monitoring risks arising from the conflict in West Asia and trade tariff measures introduced by the United States. These developments could influence commodity prices, supply chains and input costs, requiring continued attention to operational efficiency and cost management.

Nevertheless, Gupta expressed confidence in India's economic growth prospects. Government initiatives, including income tax relief, GST rationalisation and monetary policy easing, are expected to gradually support consumer demand and discretionary spending. Infrastructure and industrial demand also remain supportive, backed by the government's continued commitment to capital expenditure.

For Havells, the next phase of growth will depend on strengthening its established businesses while expanding into emerging categories, improving innovation capabilities and building a more efficient manufacturing and distribution ecosystem. With cables and renewable energy offering growth opportunities, the company is positioning itself to capitalise on India's evolving consumption patterns, infrastructure expansion and energy transition while navigating cost pressures and geopolitical uncertainties.
 

Published at : Oct 19, 2026 02:24 PM (IST)

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