Havells’ consumer durables brand, Lloyd, is charting a course for significant growth in the Indian market by strategically prioritizing the mass premium segment. The company anticipates this strategic move to be a game-changer, propelling the mass premium segment to contribute a remarkable 50% to its overall growth trajectory in the coming years.
Capturing the Value-Conscious Consumer
Currently, the mass premium segment represents a significant 30% of Lloyd’s overall growth, as highlighted by Alok Tickoo, the company’s Executive Vice President. This shift in focus towards mass premium appliances signifies Lloyd’s intention to target a customer segment that prioritizes a balance between affordability and high-end features. By strategically catering to this value-conscious demographic, Lloyd is well-positioned to tap into a rapidly growing market segment within the Indian consumer base.
Industry Reports on Mass Premium Appliance Growth
According to a recent report by Hindi research firm specializing in consumer durables in India, the mass premium segment in India’s consumer durables market is expected to witness a CAGR (Compound Annual Growth Rate) of over 15% for the next five years. This translates to a projected market size exceeding ₹ 2 lakh crore by 2027, up from an estimated ₹ 1.3 lakh crore in 2023. This significant growth is attributed to factors such as rising disposable incomes of over 10% in urban areas, increasing urbanization with a projected metro population reaching 60 crore by 2030, and growing aspirations for premium features at accessible price points.
Boosting ‘Make in India’ with Increased Production Capacity
Lloyd’s strategic direction aligns perfectly with the Government of India’s ‘Make in India’ initiative. The company recently inaugurated a new state-of-the-art air conditioner manufacturing plant in Sri City, situated near Chennai. This additional facility, combined with the existing one in Ghiloth, significantly bolsters Lloyd’s production capacity. As per industry estimates, this expansion enables them to produce an additional 1 million ACs annually, effectively meeting the burgeoning demand for mass premium appliances within the Indian market.
Cementing a Leadership Position in AC Manufacturing
The focus on mass premium appliances and the establishment of the new manufacturing plant are strategic maneuvers designed to solidify Lloyd’s position as a frontrunner in India’s AC manufacturing landscape. The company has already achieved an impressive feat by increasing its annual production capacity to two million units. Furthermore, they possess the potential to scale up production to a staggering 2.4 million units, effectively catering to the anticipated surge in demand for mass premium air conditioners.
Beyond ACs: A Holistic Mass-Premium Play
It’s important to note that Lloyd’s focus on mass premium appliances extends beyond just air conditioners. The company plans to introduce new ranges of refrigerators, washing machines, and QLED TVs within the mass premium segment. This diversified product portfolio caters to a wider range of consumer needs and positions Lloyd as a one-stop shop for value-conscious buyers seeking feature-rich appliances at a price point between ₹ 15,000 and ₹ 30,000.
Positioned for Exponential Growth
Lloyd’s strategic shift towards mass premium appliances underscores a well-calculated approach to capitalize on a rapidly growing market segment in India. By offering a compelling blend of affordability and premium features within their appliances, Lloyd is poised for exponential growth in the years to come. This strategic move positions them to become a household name synonymous with quality and value within the Indian consumer durables market, competing with established players like Voltas, Whirlpool, and Samsung in the mass premium segment.
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