He discontinued his education, today owns $1 billion company: Havells CMD Qimat Rai Gupta
Qimat Rai Gupta (CMD Havells)
Discontinued education in 1958 (Punjab)
Moved to Delhi with Rs 10,000 in pocket
Acquired Havells in 1971
Acquired European firm Sylvania in 2007
Havells became $1.3 billion company
Noida: Havells has done many mergers and acquisitions in the past few decades and has grown exponentially. The company has firmed its grip in many countries world over. The credit of the Noida based company’s $1.3 billion net worth goes largely to CMD Qimat Rai Gupta.
In 1958, Qimat discontinued his education and came to Delhi and founded electric trading operations in the electric wholesale market in Old Delhi. Rai commenced his business with an initial investment of Rs 10,000. Qimat then acquired and merged many companies, including HALS.
Qimat set up his own manufacturing unit in Tilak Nagar, Kirti Nagar, Badli, etc. From Rewireable Switches and Changeover Switches, HBC Fuses, Energy Meters, MCBs, etc. He constantly evolved his production and expanded his business.
In 1971, Qimat acquired Havells in Rs 7 lakh. He wanted to expand the company’s brand name and profit manifold. Under the leadership of Qimat Rai Gupta, Havells has succeeded to become one of the top five lighting brands of the world.
‘To become an entrepreneur, and be successful, one must be confident and determined’, says Gupta. Innovation matters a lot if one wishes to thrive in electrical goods industry. Qimat Rai Gupta realised this long before. Today Havells is a renowned fast moving electric and power distribution firm.
Havells produces circuit protection devices, cables and wires, motors, fence, modular switches, home appliances, electric water heater, power compressors, CFL lamps. The company already had firmed its hooks in the domestic market as well. Now Gupta wanted to focus in the overseas market.
In 2007, Havells established a Capacitor manufacturing plant in Noida and went on acquiring the lightning business of a Frankfurt based company Sylvania. This was for the first time when the company’s turnover crosses the benchmark of $1 billion.
The acquisition of Sylvania in 2007 led Havells become 5th largest lightning company of the world. However, the global economic crisis emerging through US sub-prime mortgage crisis in 2008 planted numerous difficulties for Havells. However, Havells-Sylvania overcame troubles.
Havells CMD Qimat Rai Gupta at his residence in Civil Lines
Gupta targets a growth over 10% in financial year 2013–14 (FY’14). He has estimated the growth to go up to 13–14%. During 2012–13, Havells turnover was Rs 7,247 crore. In the first half of the current fiscal, Havells’ turnover was Rs 3,853 crore. The company’s profit after tax (PAT) for the period was Rs 198.70 crore.
Havells focuses tremendously over quality, innovation and market consolidation. After taking his brand to seventh sky, Gupta wishes to acquire more brands under Havells. It was Gupta’s tireless effort that Havells acquired Crab Tree, Sylvania, Luminous and Standard Electricals.
Many brands of Havells are popular in outside India as well. To reach out to its customers directly, the company established the concept of exclusive retail showrooms in the electrical industry. Today, over 200 exclusive showrooms of ‘Havells Galaxy’ are operational across the country.
Lately, the company commenced customer service under the brand name ‘Havells Connect’ – offering lightning and electrical services to customers. Constantly evolving and innovating, Havells stepped into the sector of non-modular switches. The company wishes to penetrate tier-2 and tier-3 cities’ markets.
Gupta says that the electric company will keep on innovating to keep a hold over the electric market. Havells wishes to focus on rural areas as well. With the rise in income in rural areas, lifestyle of people there is evolving and Havells wishes to make most of this opportunity.
Photo courtesy: Forbes
Havells CMD Qimat Rai Gupta discontinued his education and went on to raise worlds' one of the top five electrical company worth over $1 billion.