- January 2, 2018
- Mrinmoy Bhattacharjee
Fast moving electrical goods major Havells India Ltd (HIL) wants to be counted among the top three water heater players within next six years, in a Rs 1,300-1,500 crore market that’s growing 12% annually. And it has tasked Standard, its rechristened consumer electrical youth brand with the job of enamouring the vast untapped youth segment. HIL’s vice president and Standard SBU head tells more about the latest move in an exclusive interview with SEL.
The Move: Finding the “need gap”
Our market research showed that there was a clear need gap in the water heater segment amongst the youth. The study revealed that the youth showed a preference for a range of sleek and designer water heaters with a fast heating property. This led us to conceptualise Standard-branded water heaters, which come with a refreshing vibrant look and feel. We are confident that our product will make the consumer connect. We would be heavily promoting the range with youth icon Alia Bhatt as Standard’s brand ambassador, by launching advertisements and other promotions on TV, digital and in print, besides at points of sale, 400-plus company brand stores, and 30 standalone Standard brand stores.
USP: “We also plan to launch an IoT-enabled product”
Our product comes with dry powder porco glass technology used for tank coating that prevents it from rusting and leaking, thereby providing longer life. It comes with a single weld-line tank, making the product durable. The water heater is equipped with incoloy 800 heating element and enamel coating that is highly resistive to corrosion and provides faster heating. We also plan to launch an IoT-enabled product in the near future.
ALSO READ: Havells Steps up its ‘Standard’ Game
Growth Drivers: “Today’s Youth are Online 24×7…”
Today, the rate of growth in tier-I to V cities outweighs the growth rates of the metro cities. Standard, by virtue of its strong presence in these smaller towns, would be able to grow very well. We would leverage on digital marketing and mobile marketing to promote the brand heavily. Today’s youth are online 24×7. Standard, through its digital marketing efforts, would be able to endear itself to this growing segment very fast.
Manufacturing Muscle: “Over 5 Lakh Units Annually…”
Standard takes pride in having India’s most modern and integrated water heater plant as part of its commitment to ‘Make in India’. Located inside our 40-acre Neemrana complex, the plant has a capacity to produce over five lakh units annually. The advanced plant uses automation and new age manufacturing techniques such as automated Metal Inert Gas (MIG) welding, dry powder enamel coating, automatic PUF filling, CFC-free (environment friendly) PUF insulation, and outer body-rolling for the metal range. These advancements help Standard ensure that its water heaters offer long life even in areas that are supplied with hard water, and their tanks are resistant to corrosion and provide maximum energy-efficiency. The one-of-its-kind plant also features a computerised online safety testing process that makes sure that every Standard water heater is completely safe to use.
Distribution: “Focusing on Creation of pan-India Network…”
Currently we have a strong distribution channel with 3,200 direct channel partners and 20,000 indirect retailers in the country. We have good presence on traditional E-commerce websites such as Amazon, Flipkart and Paytm. We have launched our E-store for leveraging the reach to our audience. We are focusing on creation of a pan-India network and brand shops, to make the product range accessible to the masses. We are focused on creating a network parallel to Havells water heater dealers and distributors with minimal or no overlap.