V-Guard Industries Limited has informed the Exchange regarding Investor Presentation
January 31, 2019
The Manager Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001
The Manager Listing Department, National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 051
Ref:- Scrip Code: 532953
Ref:- Symbol: VGUARD
Sub: - Presentation on Financial Results of the Company for the Quarter ended on
December 31, 2018 - reg.
Dear Sir / Madam,
Pursuant to Regulation 30 read with point 15 of Para A of Part A of Schedule Ill and Regulation 46 (2)(o) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, we hereby submit the Earnings Presentation on Unaudited Standalone Financial Results of the Company for the quarter ended December 31, 2018.
Kindly take the information on record.
Thanking You,
For V-Guard Industries Limited
Jayasree K Company Secretary
Encl: As above
V-GUARD INDUSTRIES LTD. Regd. office 42/962, Vennala High School Road, Vennala, Kochi - 682 028. CIN:L31200KL1996PLC010010
P +91 484 300 5000, 200 5000 F +91 484 300 5100 E mail@vguard.in W www.vguard.in
V-Guard Industries Q3 FY2019 Earnings Presentation
Disclaimer
2
Certain statements in this communication may be ‘forward looking
statements’ within the meaning of applicable laws and regulations. These
forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from
those
suggested by
the
forward-looking
statements.
Important
developments that could affect the Company’s operations include
changes in the industry structure, significant changes in political and
economic environment in India and overseas, tax laws, import duties,
litigation and labour relations.
V-Guard Industries Limited (V-Guard) will not be in any way
responsible for any action taken based on such statements and
undertakes no obligation to publicly update these forward-looking
statements to reflect subsequent events or circumstances.
Table of Contents
3
MD’s Message
Key Highlights
Financial Highlights
04
05
6-8
Segment-wise/Geographical Breakup of Revenues
9-11
Business Outlook
Annexure
12
13
Managing Director’s Message
4
Commenting on the performance for Q3 FY19, Mr. Mithun Chittilappilly, Managing Director – V- Guard Industries Limited said,
“Revenue growth during Q3 FY19 came in at 12% YoY, driven by Water Heater, Stabilizer, Fan and Digital UPS segments. The new product categories of Switchgears, Modular Switches and Kitchen Appliances also continue to witness strong traction. We have seen some recovery in demand in the south markets which delivered growth of 9.2% YoY this quarter, the highest growth rate seen in the last seven quarters. Non-south markets continue to witness strong traction and grew 18% YoY. Non-south markets contributed to 37.2% from 35.5% a year ago. We continue to invest in growing our presence further and envisage 50% contribution from this business over the next 4-5 years.
A&P spends were at 5.5% for the quarter. The new brand identity along with the transformation initiatives that we have undertaken in the past few years have enabled us to increase penetration and brand recall, making us more relevant and impactful as a consumer oriented organisation that is catering to the evolving needs of consumers across the country.
Volatility in commodity prices and exchange rate impacted our margins during the quarter. We expect this to be a temporary phase and expect margin trajectory to improve going into the next quarter on the back of strengthening currency and planned pricing actions. We expect EBITDA margins of ~9% for full year FY19. Our prudent approach and focus on profitable and sustainable growth has resulted in strong cash flow generation to the tune of Rs. 160 crore in 9M FY19.
To conclude, this has been a quarter of business recovery after the flood impact last quarter. In 9M FY19, we have now delivered overall growth of ~12.5% on GST-adjusted basis. We further expect to see acceleration in our sales velocity going into the peak summer season in Q4. Over the past couple of years, we have been transforming and revamping our strategies to strengthen the brand, improve processes and expand the product portfolio to achieve higher growth. We will continue to invest in the business and drive innovation across every facet of the organization to meet the dynamic requirements of our discerning consumers.”
Key Highlights – Q3 FY2019
Revenue growth of 12.2% YoY in Q3 FY19
• Reported growth of 12.2% YoY to Rs. 594.3 crore • Recovery seen in South markets with revenue growth of 9.2%, highest seen in the last seven quarters • Non-South markets sustain momentum with18% YoY growth in Q3 FY19; Non-South contribution at 37.2% of sales (35.5% in Q3 FY18) • Revenues were driven by Stabilizer, Digital UPS, Water Heater and Fan segments • Like-to-like growth in 9M FY19 at 12.5% • Q4 FY19 to see acceleration in sales velocity going into the peak summer season
Gross profit up 5.0% YoY to Rs 178.4 crore
• Gross margins were up 40 bps QoQ but lower by 200 bps YoY at 30.0% • Margins impacted by volatility in commodity prices and depreciation of the rupee
EBITDA declined 5.1% YoY, PAT by 5.8%
• Ad/promotional spends at 5.5% of sales in Q3 FY19 as compared to 5.7% in Q3 FY18 • EBITDA margins at 8.3% in Q3 FY19 as compared to 9.8% in Q3 FY18
Sharp 7 day YoY improvement in working capital cycle
Strong return ratios
• Working capital cycle improves to 55 days in Q3 FY19 as compared to 62 days in Q3 FY18 and 59 days in Q2 FY19 • Strong cash generation continues, CFO up 113% to Rs. 160 crore in 9M FY19 as compared to Rs. 75 crore in 9M FY18 • Net cash of Rs. 203 crore on balance sheet as on 31st December 2018
• Strong return ratios maintained with ROE and ROCE of 16.0% and 18.6% respectively (TTM basis) at the end of Q3 FY19
5
5
Financial Highlights (Q3 FY19 vs Q3 FY18)
6
Total Income (Rs. crore)
Gross Profit
530
594
170
178
12.2%
5%
Q3 FY18
Q3 FY19
Q3 FY18
Q3 FY19
Key ratios (%)
Gross Margin
EBITDA Margin
Net Margin
EBITDA (Rs. crore)
PAT (Rs. crore)
Ad Expenditure (incl. promotions)/Total Revenues
Employee Cost/ Total Operating Income
52
49
36
34
Other Expenditure/ Total Operating Income
Tax rate
Diluted EPS (Rs.)
-5.1%
-5.8%
Q3 FY18
Q3 FY19
Q3 FY18
Q3 FY19
Q3 FY19 Q3 FY18
30.0%
32.1%
8.3%
5.7%
5.5%
8.3%
14.2%
22.0%
0.78
9.8%
6.8%
5.7%
8.1%
14.6%
23.4%
0.82
Financial Highlights (9M FY19 vs 9M FY18)
7
Total Income (Rs. crore)
Gross Profit
1,663
1,827
504
548
9.9%
8.9%
9M FY18
9M FY19
9M FY18
9M FY19
EBITDA (Rs. crore) 157 153
PAT (Rs. crore)
106
106
-2.6%
0.7%
9M FY18
9M FY19
9M FY18
9M FY19
Key ratios (%)
Gross Margin
EBITDA Margin
Net Margin
Ad Expenditure (incl. promotions)/Total Revenues
Employee Cost/ Total Operating Income
Other Expenditure/ Total Operating Income
Tax rate
Diluted EPS (Rs.)
9M FY19
9M FY18
30.0%
30.3%
8.4%
5.8%
5.5%
8.2%
14.1%
21.5%
9.4%
6.3%
5.3%
7.7%
13.6%
25.4%
2.45
2.43
Financial Highlights – Balance Sheet Perspective
Balance Sheet Snapshot (Rs. cr)
31 Dec 2018
30 Sept 2018
31Dec 2017
Net worth
Gross debt
Current Investments
Cash and cash equivalents
Net Cash Position (Rs. crore)
Fixed Assets
837.5
10.0
157.1
55.8
202.9
218.4
799.7
10.0
158.9
6.2
155.2
211.5
716.3
3.3
104.1
4.1
104.9
204.4
Balance Sheet Snapshot (Rs. cr)
31 Dec 2018
30 Sept 2018
31 Dec 2017
Debtor (days)
Inventory (days)
Creditor (days)
Working Capital Turnover (days)
RoE* (%)
RoCE* (%)
*Calculations are on a trailing twelve month basis
46
72
64
55
16.0%
18.6%
53
68
62
59
17.0%
20.1%
51
67
57
62
20.2%
26.0%
8
8
Segment-wise Breakup of Revenues – Q3 FY19 vs Q3 FY18
9
Products
Electronics Electricals Consumer Durables Grand Total
Products
Stabilizers UPS (Digital + Standalone) Pumps Wires Water Heaters (Electric + Solar) Fans Kitchen Appliances Switchgears & Modular Switches Air Coolers GRAND TOTAL
Q3 FY19
(Rs. Cr) 152.5 257.9 183.8 594.3
Q3 FY19
(Rs. Cr) 97.1 55.4 64.1 173.9 114.3 49.1 17.7 19.8 2.7 594.2
Contribution (%) 26% 43% 31% 100%
Contribution (%) 16% 9% 11% 29% 19% 8% 3% 3% 0% 100.0%
Q3 FY18
(Rs. Cr) 129.9 249.9 149.9 529.7
Q3 FY18
(Rs. Cr) 82.8 47.1 63.1 174.0 97.9 39.9 12.2 12.8 0.0 529.7
Contribution (%) 25% 47% 28% 100%
YoY growth (%) 17.4% 3.2% 22.6% 12.2%
Contribution (%) 16% 9% 12% 33% 18% 8% 2% 2% 0% 100.0%
YoY growth (%) 17% 18% 2% 0% 17% 23% 45% 55%
12%
Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers
Segment-wise Breakup of Revenues – 9M FY19 vs 9M FY18
10
Products
Electronics Electricals Consumer Durables Grand Total
Products
Stabilizers UPS (Digital + Standalone) Pumps Wires Water Heaters (Electric + Solar) Fans Kitchen Appliances Switchgears & Modular Switches Air Coolers GRAND TOTAL
9M FY19
(Rs. Cr) 554.4 773.4 498.9 1,826.7
9M FY19
(Rs. Cr) 324.6 229.8 187.0 528.7 274.7 157.1 61.4 57.6 5.7 1,826.7
Contribution (%) 30% 42% 27% 100%
Contribution (%) 17.8% 12.6% 10.2% 28.9% 15.0% 8.6% 3.4% 3.2% 0.3% 100.0%
9M FY18
(Rs. Cr) 521.5 722.5 418.7 1,662.7
9M FY18
(Rs. Cr) 322.7 198.8 188.2 498.8 240.8 133.6 44.3 35.5
1,662.7
Contribution (%) 31% 43% 25% 100%
YoY growth (%) 6.3% 7.0% 19.2% 9.9%
Contribution (%) 19.4% 12.0% 11.3% 30.0% 14.5% 8.0% 2.7% 2.1% 0.0% 100.0%
YoY growth (%) 0.6% 15.6% -0.6% 6.0% 14.1% 17.6% 38.7% 62.2% 0.0% 9.9%
Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers
Note 1: Consequent to the introduction of GST w.e.f. July 01, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. Unlike Excise Duties, levies like GST, VAT, etc. are not part of Revenue. The YoY growth calculations appearing in this section, are not strictly comparable with prior periods.
Geographical Breakup of Revenues
11
Region
South
Non-South
Total Revenue
Region
South
Non-South
Q3 FY19
(Rs. Cr)
Contribution (%)
Q3 FY18
(Rs. Cr)
Contribution (%)
YoY growth (%)
373.0
221.2
594.2
62.8%
37.2%
100%
341.7
188.1
529.7
64.5%
35.5%
100%
9.2%
17.6%
12.2%
9M FY19
(Rs. Cr)
1,112.1
714.6
Contribution (%)
61%
39%
9M FY18
(Rs. Cr)
1,062.7
600.0
Contribution (%)
YoY growth (%)
64%
36%
4.7%
19.1%
9.9%
Total Revenue
1,826.7
100%
1,662.7
100%
Business Outlook
12
•
•
•
•
•
•
•
The Company is confident of achieving a topline growth of 15% over the next few years driven by expansion into non-South markets and introduction of new product categories.
We continue to undertake business strengthening initiatives and putting in place best in class processes and systems to future-proof the organization. We will be focused on successfully executing the objectives of ‘Udaan Phase-II’ as well as seeing through the successful pan-India implementation of salesforce.com.
The Company envisages adding 3,000-5,000 retailers across the country every year over the next five years with higher addition in the non-South region.
Going forward, the Company shall continue to build upon its competitive positioning in the consumer electricals, electronics and durables industry. The Company will maintain its thrust on advertising and promotions to increase its brand visibility and penetration in the non-South markets under its new brand identity reflecting the company’s transformation into a leading multi-product, pan-India player in the Consumer Electricals space.
Two-thirds of the Company’s distribution network has already been established in the non-South region. This provides significant potential for revenue growth and operating leverage to expand on existing investments. The Company envisages the non-South markets to contribute to 50% over the next five years.
Efforts on innovation, R&D and product development will continue to be made in order to roll out differentiated offerings in a competitive industry. We have products that are connected, controlled and M2M capable and are bringing capabilities like machine learning as well. We are also building in auto diagnostics into devices. We are also working on a digital strategy for the company that includes looking at the predictive maintenance in plants, using Artificial Intelligence. We are focusing on Six Sigma, TPM, lean manufacturing, etc at our 10 plants in India. The manufacturing execution system (MES) acts as an enabler for Industry 4.0, providing real-time factory data.
The cash positive balance sheet enables us to pursue inorganic opportunities, if valuations favour. We are looking at companies having product range synergy with V-Guard, providing manufacturing capabilities or strong regional players where V-Guard can expand its geographic footprint. Further, the Board has approved raising of funds up to an aggregate of Rs. 500 crore through debt or equity or a combination of both.
13
Annexure
Company Overview
14
Comprehensive portfolio catering to the mass consumption market
• Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular
Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers • Household consumption market will continue to grow at a significant pace going forward
Invested in a strong distribution network
• Spread over 30 branches nationwide • Network of 30,000+ retailers
Strong Brand Equity
• Aggressive ad spends and sales promotions have created a strong equity and brand recall • Strong established player in South India with leadership in the Voltage Stabilizer segment
Expanding towards a pan India presence
• Significant investments committed towards aggressive expansion in non-South markets • Increased capacities for house-wiring cables and solar water heaters
Mix of in-house and outsourcing production model provides flexibility
• Follows an asset light model outsourcing ~58% of its products from a range of vendors • Tie-ups with SSIs/self-help groups spread across southern India • Blended manufacturing policy helps optimize capex and working capital requirements
Increasing market share across all product lines
• Leadership position in its flagship product, voltage stabilizers, with over 51% market share • Successfully gained market share in all of its product categories • Rapidly expanding market share in the non-South markets
Production Model
15
PVC Wires Factory
Solar Water Heater Factory
Stabilizer Manufacturing Units
Product
No. of Units
Location
Outsourcing Objectives
PVC Wiring Cables
Pumps & Motors
Fans
Water Heater
Solar Water Heaters
Stabilizers
Stabilizers
Pumps
Fans
UPS
Own Manufacturing Facilities
2
1
1
2
1
2
Coimbatore, Kashipur
Coimbatore
Himachal Pradesh
Himachal Pradesh, Sikkim
Perundurai
Sikkim
Outsourced production facilities
57
18
11
9
Across India
“
“
“
• Asset light model outsourcing ~58% products
• Complete control over supply chain ecosystem
•
R&D support to vendors’ technical teams
• Quality assurance official posted at vendors’ production units to ensure maintenance of
quality
• Owns all its designs and moulds
• Helps procure raw material for the vendors, negotiating price with the supplier
•
•
Tie-ups with SSIs/self-help groups across Southern India for flagship product, Stabilizers
Blended manufacturing policy helps optimize capex and working capital requirements
Financial Highlights (FY13-18)
16
e r o r c
. s R
1,360 1,518
Revenue
EBITDA and EBITDA Margins
PAT and PAT Margins
2,114
2,321
1,746 1,862
9.9% 10.5% 8.5%
8.3% 8.4% 7.9%
e r o r c
. s R
4.7% 4.6%
e r o r c
4.1%
. s R
6.0%
6.8%
5.7%
114
127
138
185
222
198
63
70
71
112
145
133
FY13
FY14
FY15
FY16
FY17
FY18
FY13
FY14
FY15
FY16
FY17
FY18
FY13
FY14
FY15
FY16
FY17
FY18
Note 1:Please note that that consequent to the introduction of Goods and Service Tax (GST) with effect from July 01, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule III of the Companies Act, 2013, unlike Excise Duties, levies like GST, VAT, etc. are not part of Reve nue. Hence, the revenue and growth calculations for FY18, are not strictly comparable with FY17 and prior periods. Note 2: V-Guard underwent brand rejuvenation in Q4 FY18 where significant investments (Rs. 45 crore ATL spends) were made resulting in lower EBITDA and PAT for FY18.
ROE
ROCE
32.9
29.9
25.3
25.9
22.0
18.7
23.5
22.8
23.0
24.0
22.2
17.7
Net Worth
Gross D/E
0.6
e r o r c
. s R
0.3
261
318
0.2 378
0.0 471
0.0 634
0.0
752
FY13
FY14
FY15
FY16
FY17
FY18
FY13
FY14
FY15
FY16
FY17
FY18
Note 3: V-Guard adopted Ind-AS framework starting FY18. Numbers for FY17 have been reinstated in compliance with Ind-AS to draw meaningful comparison. Prior period numbers are in IGAAP and not comparable.
Operational Highlights (FY13-18)
17
Expanding Geographic Presence
25%
30%
33%
33%
35%
37%
75%
70%
67%
67%
65%
63%
Ad & Promo Spends and as a % of Sales
58
60
69
80
95
4.3%
3.9%
4.0%
4.3%
4.5%
153
6.6%
FY2013
FY2014
FY2015 South
FY2016 Non-South
FY2017
FY2018
FY2013
FY2014
FY2015 Ad Spends
FY2016
FY2017
FY2018
% of Sales
In-house Manufacturing vs. Outsourcing
Strong Growth in Distributor Network
60%
57%
60%
60%
60%
58%
40%
43%
40%
40%
40%
42%
408
445
328
220
187
208
216
231
167
134
FY2013
FY2014
FY2015 In-house
FY2016 Outsourced
FY2017
FY2018
FY2013
FY2014
FY2015
FY2016
FY2017
South
Non-South
Segment-wise Breakup of Revenues – FY18 vs FY17
18
Products
Electronics Electricals Consumer Durables Grand Total
Products
Stabilizers UPS (Digital + Standalone) Pumps Wires Water Heaters (Electric + Solar) Fans Kitchen Appliances Switchgears & Modular Switches Air coolers GRAND TOTAL
FY18
(Rs. Cr) 729.2 1,017.1 575.0 2,321.3
FY18
(Rs. Cr) 443.2 286.0 275.4 688.6 284.5 228.4 58.4 53.1 3.7 2,321.3
Contribution (%) 31.4% 43.8% 24.8% 100.0%
Contribution (%) 19.1% 12.3% 11.9% 29.7% 12.3% 9.8% 2.5% 2.3% 0.2% 100.0%
FY17
(Rs. Cr) 664.8 940.9 508.5 2,114.2
FY17
(Rs. Cr) 428.1 236.7 261.8 638.8 265.0 200.7 42.8 40.3 0.0 2,114.2
Contribution (%) 31.4% 44.5% 24.0% 100.0%
Contribution (%) 20.2% 11.2% 12.4% 30.2% 12.5% 9.5% 2.0% 1.9% 0.0% 100.0%
YoY growth (%) 9.7% 8.1% 13.1% 9.8%
YoY growth (%) 3.5% 20.8% 5.2% 7.8% 7.4% 13.8% 36.4% 31.8% 0.0% 9.8%
Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers
Note 1: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS. Note 2: Consequent to the introduction of GST w.e.f. July 01, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. Unlike Excise Duties, levies like GST, VAT, etc. are not part of Revenue. Hence, the growth calculations appearing in this section, are not strictly comparable with prior periods.
Geographical Breakup of Revenues
19
Region
South
Non-South
Total Revenue
FY18
(Rs. Cr)
1,462.8
858.5
2,321.3
Contribution (%)
63%
37%
100%
FY17
(Rs. Cr)
1,385.5
728.7
2,114.2
Contribution (%)
YoY growth (%)
66%
34%
100%
5.6%
17.8%
9.8%
Market Size across Product Segments
20
Products
STABILIZERS
PVC WIRES
COOKTOPS
MOTOR PUMPS
Organized
* ) e r o r C
e z i S
t e k r a M
. s R (
Total
Unorganized
700.00
550.00
1,250.00
5,500.00
4,000.00
9,500.00
420.00 – 450.00
180.00 – 200.00
5,500.00
5,000.00
600.00 – 650.00
10,500.00
Key Players
Micro tech, Livguard, Bluebird, Capri, Logicstat, Premier, Everest
Polycab, Havells, Finloex, RR Cables, Anchor
Prestige, Bajaj Electrials, TTK Prestige, Preethi, Butterfly
Crompton Greaves, Kirloskar, CRI, Texmo
Production Model
80% Outsourced
100% In-House
100% Outsourced
90% Outsourced
Distribution Channel Strategy
*Company estimates FY16
Consumer Durable stores, Electrical and Hardware Stores
Electrical and Hardware Stores
Consumer Durables / Kitchen Appliances stores
Electrical and hardware Stores, Pump and Pipe fittings Stores
Market Size across Product Segments
21
Products
WATER HEATERS
. s R (
e z i S
t e k r a M
* ) e r o r C
Organized
1,325.00
Unorganized
700.00
Total
2,025.00
Key Players
A.O. Smith, Racold, Bajaj, Venus, Crompton Greaves, Usha
FANS
5,000.00
1,500.00
6,500.00
UPS
160.00
240.00
400.00
Digital UPS
4,500.00
750.00
5,250.00
Crompton, Usha, Bajaj Electricals, Havells, Orient
Numeric, APC, Emerson
Microtek, Luminous, Su-Kam, Exide
Production Model
55% Outsourced
90% Outsourced
100% Outsourced
100% Outsourced
Distribution Channel Strategy
Consumer Durable stores, Electrical and Hardware Stores
Consumer Durable stores , Electrical and Hardware Stores
Consumer Durable stores
Consumer Durable stores, Electrical and Hardware stores, Battery Retail stores
*Company estimates FY16
Market Size across Product Segments
22
Products
SOLAR WATER HEATER
SWITCHGEAR
GAS STOVES
MIXER GRINDERS
. s R (
e z i S
t e k r a M
* ) e r o r C
Organized
Unorganized
Total
Key Players
420.00
180.00
600.00
1,400.00
600
2,000.00^
1,000.00
1,000.00
2,000.00
1,500.00
1,000.00
2,500.00
Racold, Emmvee Solar, Sudarshan, Supreme
Havells, Legrand, L&T, ABB
Butterfly (glass top), Sun Flame (steel)
Preethi, Bajaj Electricals, Butterfly, Panasonic
Production Model
100% In-House
100% Outsourced
100% Outsourced
100% Outsourced
Distribution Channel Strategy
Direct Marketing Channel
Electrical stores
Consumer Durables / Kitchen Appliances stores
Consumer Durables / Kitchen Appliances stores
*Company estimates FY16; ^The market size where V-Guard is present; total domestic switchgear market estimated at Rs. 4,000 crore
About V-Guard Industries
23
V-Guard Industries Limited (BSE:532953, NSE: VGUARD) is a Kochi based company, incepted in 1977 by Kochouseph Chittilapilly to manufacture and market Voltage stabilizers. The Company has since then established a strong brand name and aggressively diversified to become a multi-product Company catering to the Light Electricals sector manufacturing Voltage stabilizers, Invertors & Digital UPS systems, Pumps, House wiring cables, Electric water heaters, Fans, Solar water heaters and has also recently forayed into Induction cooktops, switchgears and mixer grinders.
For further information, please contact:
Sudarshan Kasturi (Senior VP & Chief Financial Officer)
V-Guard outsources 60% of its product profile while the rest are manufactured in – house while keeping a strong control in designs and quality. It has manufacturing facilities at Coimbatore (Tamil Nadu), Kashipur (Uttaranchal) and Kala Amb (Himachal Pradesh).
V-Guard Industries Limited
Tel: +91 484 300 5601
Email: sudarshan.kasturi@vguard.in
V-Guard has been a dominant player in the South market, though the last five years have also seen the Company expanding rapidly in the non-South geographies with their contribution increasing from 5% of total revenues in FY08 to around 33% of total revenues in FY15. Significant investments continue to be made to expand its distributor base in the non-South geographies, and become a dominant pan-India player.
V-Guard has a diversified client base and an extensive marketing & distribution network. Its client base differs from product to product and includes direct marketing agents, distributors and retailers. The Company today has a strong network of 29 branches, 624 distributors, 5,562 channel partners and ~25,000+ retailers across the country.
Shiv Muttoo / Varun Divadkar
CDR India
Tel: +91 22 6645 1207 / 9763702204
Email: shiv@cdr-india.com / varun@cdr-india.com
THANK YOU