Lloyd bolsters mass premium play; anticipates 50% growth in the market

Lloyd, the consumer durables brand from Havells India, strengthened its “Made in India” campaign on Tuesday by introducing a new line of QLED TVs, refrigerators, washing machines, and air conditioners in the mass premium market. According to Alok Tickoo, executive VP of Lloyd, the sector now makes up 30% of the company’s entire growth, but in the next years, that percentage is predicted to increase to 50%.

“We have spent the last three years building our brand to become a mass premium brand,” he said. Customers would only pay more for a unique product, thus we need to cut through the clutter of “me-too” items in the Indian consumer market.” He did, however, note that India continues to lead the world in volume for a wide range of product categories.

He said, “The company won’t compromise on the volumes,” even if it is very focused on having a profitable quarter in the next fiscal year. Havells India, a manufacturer of electrical appliances and components, paid Rs 1,600 crore in 2017 to buy Lloyd Consumer Durable Business Division (Lloyd Consumer). In Q3, FY24, Lloyd’s revenue share of Havells’ total revenue was 15%. The net loss of Lloyd’s business increased to Rs 62 crore in Q1, FY24 as opposed to Rs 56 crore in Q1, FY22, and Rs 23 crore in Q4, FY23.

Yogesh Kumar Gupta, executive director of Havells India, described Lloyd’s path as “long-term,” noting that he sees possibilities for the consumer durable brand not just in India but also in the US and Middle East markets. Outlining the company’s development strategy, he said that it is improving brand building, extending channel expansion, constructing a pan-Indian service network, and focusing on manufacturing. “We want to play a protracted match. We want to be a powerful force in consumer durables, just as we have been via Havells in the electrical industry, and it will take time,” he said.

Apart from its Ghiloth facility, which makes ACs and washing machines, it recently opened a new AC manufacturing factory in Sri City, near Chennai, to solidify its position as one of the leading AC manufacturing businesses in India. The company’s overall yearly manufacturing capacity is now two million units, with the potential to reach 2.4 million, thanks to the new facility’s impressive one million AC output capability. According to Gupta, this calculated action would greatly strengthen Lloyd’s position in the AC manufacturing industry.

He said that he anticipated “good growth” this year due to the summer months and that “investment is not an issue for us.” At least the signs don’t seem to support our belief that demand is down.

Currently offering more than 120 AC models, Llyod sells to 30 countries, however at the moment, its revenue share is still modest, according to Gupta.