Big Get Bigger

The largest of India Inc. are expanding and consolidating for greater scale, reach and market share.

- NEVIN JOHN

WHEN ANIL RAI GUPTA took over as chairman of Havells India in 2014 following his father Qimat Rai Gupta's demise, the consumer electronics major was largely into switchgear, fans and cable manufacturing. Anil, an MBA from Wake Forest University in the U.S., expanded the business into solar products and home automation, acquired the Lloyd brand in 2017, and entered airconditioners, LED TV and washing machine businesses - making Havells a complete consumer durables firm. When the pandemic struck, he focused on consolidation and financial discipline.

The result: Havells India posted two back-to-back years of over ₹1,000 crore in net profit. Net sales increased 68% to 16,910 crore in five years, while profit went up 36% to ₹1,072 crore. Gupta is now considering foraying into refrigerator manufacturing as it will broaden the Lloyd portfolio to take on the likes of global giants LG and Samsung.

Fresh from the effects of a Covid-induced slowdown, India Inc. is witnessing a new hunger to dominate in companies that already have a formidable presence in their respective sectors, and have devised expansion, consolidation and financial strategies.

The big, therefore, are becoming bigger. Some are making a mark in global sweepstakes, by featuring in the worldwide pecking order. For instance, after the merger of HDFC Bank and HDFC, the merged HDFC Bank will become the world's seventh-largest lender.