How Should I buy Havells Distributorship? – Cost & Profit

In the rapidly growing indian economy, the electrical industry is certainly poised to grow at an exceptional pace. Since our childhood, we have been seeing multiple electrical brands such as Havells, Polycab, KEI and many more.

While you may have purchased these electrical items of these brands from your neighbourhood outlets for your home or offices and have liked its product quality so much that it intrigued you to take up its dealership or distributorship, but which one to get started with.

If you have this question in mind or by any chance you were looking to buy a Havells distributorship, then this piece is definitely for you.

Background on Havells Distributorship

Haveli Ram Gandhi was the man behind the Havells’ establishment and name Havells is certainly named after the founder name. You may wonder if Havells was an international brand but surprisingly, they are one of India’s home grown pioneer electrical equipment chain that sells a wide range of home, commercial, and industrial tools such as cables, lights, motors, fans, heaters, and much more.

The founder later sold it business to its distributor Qimat Rai Gupta who later took this business to new heights.

From a single manufacturing unit in Alwar, Rajasthan in 1996, Havells has broaden its manufacturing units to more than 15 units across the country.

According to the official website, the chain sells nearly 10% outsourced equipment and approximately 90% of their articles are produced at its own units, which eventually allows them to deliver top-notch products to its customers.

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What’s the current Havells Dealership network?

To fulfill the ever-growing demand of its consumers, Havells has expanded its dealership networks across the country who are well-supported by its robust distributors.

At present, they have a strong dealership network of over 800 exclusive brand outlets, nearly 14000 dealers and more than 1 lakh small retailers across the nation.

Eventually, the number of retailers are bound to increase in coming years as Havells has positioned itself as premium brand and several entrepreneurs are looking to partner with them for a long term.

How much does the Havells Distributorship cost?

In last few years, Havells has acquired multiple brand under it, while some traded as its old name and other trades as Havells itself.

Some of the leading brands you may know are Lloyd, Standard, Crabtree, REO, and they all belongs to Havells, a single entity. In case you want to take up a dealership of mentioned brand, you need to visit to its official website.

First of all, if you are looking for Havells dealership for its exclusive store concept, then you can either opt for Havells Galaxy or Utsav Stores. For Havells sub-dealership, you need to connect with your nearest dealer(either offline or online) that can help you get started with your journey with Havells.

The initial startup cost for Havells dealership could range between Rs 15 lakhs and Rs 30 lakh, which includes the expenses like one-time fee deposit, store decor, inventory, and others.

However, for candidates interested in Havells Distributorship, you may need to invest at least Rs 50 lakh or more. The distributorship investment majorly dependent on the city, available supply chain, number of existing dealers available.

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How much profit can a Havells Distributor make?

Partnering with a renowned electrical company brings in some of really cool perks such as getting opportunities to avail regular schemes, discounts, and regular customer footfall at the outlet.

According to its latest annual report and summary available at CNBCTV18, The operational revenue for Havells saw a significant jump of 21.32% to Rs 16,910.73 crore in fiscal year 2023.

However, their net profit were declined by 10.42% to Rs 1,071.73 crore. Additionally, if you would have just invested nearly 1 lakh a decade ago in Havells stocks, it could have given you 10x return on your investment.

But, if you are looking for a profit margin in Havells distributorship business, then it may range between 10-15% for a dealer and 5-10% for a distributor. and obviously, a distributor will have a higher sales volume.

Requirement for Havells Dealership

• As a dealer, you’ll need to secure a retail space of at least 800 – 1000 square feet in a high traffic area. For a distributor, you need to have a larger go down space.
  • It would be even better if you find a space in your nearly electrical market.
• A basic understanding of business/finance/and equipment is necessary. In case you have any prior experience, it will be an added advantage.
• You may be required to manage the expenses for staffs, store, and daily work at the store.
• As a distributor, you may need to hire 3-4 employees that can bring in some extra dealers under you.
  • They should be aware of the industry and should have better marketing skills(prior experience is better).

How do I Get Havells Distributorship?

The official website has listed the process to become Havells authorized dealer and here are some of the details available.

Important: https://dealershiphavells.com/appy-dealership/ is totally a scam. Never click on this link.

Havells has only single domain, which is https://www.havells.com/. Please follow the mentioned steps:

1. Visit the official website and navigate to Dealer Locator.
2. There you can find the details of Exclusive Brand Stores and Utsav Stores.
   • In case you are interested in opening an Exclusive Store – Send out an email at  galaxy@havells.com
   • For Utsav Store –  galaxy@havells.com

Or, they also have a separate enquiry page where you can register your interest for same.

You need to mention your name and contact details. It would be better if you can compose a well-verse message showcasing your interest in owning one of their location.

The Editor’s Thought

With a rich heritage in electrical segment, HAVELLS can certainly be your best electrical brand to partner, but all you need to have the basic understanding of electrical tools, market presence, growth and its competitive advantages.

Definitely for becoming a distributor, you may need to invest more and with option available for becoming its approved dealer seems to be the most viable option. And also I feel that distributorship isn’t a simple thing if you are just starting fresh.

In most cases, Company only make someone as a distributor when they prove and showcases their excellence in dealership category.

Please note that the details or investment range mentioned in the article is merely for the education purpose. For more information, you should contact the Havells market representative.

Feel free to comment your thoughts and help this article to reach to a passionate entrepreneur.

You may consider checking these categories:

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, 

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