V-Guard celebrates 40 years of growth & innovation
Kochi, Date: V-Guard Industries, India’s leading consumer electrical and electronics major has completed 40 years of inception. From a single product company to a multinational enterprise with 16 product verticals, V-Guard has grown to become the leader in innovation, standing for trust, quality, convenience and values.
In 1977, Mr.Kochouseph Chittilappily had a vision to make products of superior quality andwith Rs.1,00,000 borrowed from his father commissioned a small unit in Keralato manufacture voltage stabilizers. In the next 4 decades, V-Guard has emergedas a respected pan-India brand synonymous with voltage stabilizers andincluding a diversified portfolio of modern value-enhancing products.
In the yearsthat followed, V-Guard’s grand venture expanded from a dealer centric businessapproach to a consumer-centric business model. The business became morelucrative after the founder’s son, Mr. Mithun Chittilappily joined the businessin 2005 and brought in a strong model to evolve V-Guards position in themarket. In 2008 V-Guard became a public listed company with BSE and NSE. Thepositive impact that V-Guard had was stronger in South India. This gave thebrand an opportunity to explore newer non-South markets. They set up factoriesin Kashipur, Kala Amb and Sikkim due to the growing demand for consumerelectronics.
In 2012,when Mr. Mithun Chittilappily was appointed as Managing director, turnovercrossed Rs.1000 Crores. V-Guard continued to introduce new products andexplored more developing markets across India and 2013 set up the solar heaterplant and launched mixer grinders. In 2014, turnover crossed Rs. 1500 Crores.The steady rise in net sales proved to be a result of the MDs optimization tocross barriers and set up a Pan India presence.
Since 2015,V-Guard has been consistently growing and 2016-17 reported a 15 percent growthwith an operating profit margin at 10.6 percent. In 2017 net sales crossedRs.2000 Crores with an operating profit crossing 200 Crores which is a strongresult for a business in this sector. In 2017 Q2 profit increased 25%.
Commentingon the milestone growth, Mr. Mithun Chittilappilly, Managing Director,V-Guard Industries Ltd, said, ‘The journey of 40 years is a testamenttowards our dedication to create a quality brand that appeals to every demography.Innovation has contributed to making us move from a manufacturer of back-endproducts to consumers-facing products and instill recognition & loyaltywith our patrons’. We believe the growing demand in Non-South markets give us awealth of opportunity to explore & build our presence there’.
Over theyears, as V-Guard grew, the company introduced innovative processes to elevateits operations. V-Guard recognized the challenges and the need to derive aprecise understanding of marketplace trends and moods.
V-Guardintroduced various initiatives such as ‘Project Tez’ which allowed the companyto engage more frequently with its trade partners with a sales force automationsystem that captures trade information on an electronic tablet. This gaveaccess to marketplace realities with virtual real-time information. ‘ProjectUdaan’, another ingenuity redefined the art of Supply Chain Managementtransforming the way in which V-Guard planned production, sales, materialprocurement and finished goods delivery. The result delivered substantialgains, moderate inventories, strengthened working capital management andenhanced overall competiveness. V-Guard also introduced ‘Project Parivarthan’to enrich its customer service experience by transforming its conventionalservice delivery model. The new service system was structured around Siebel-CRMwhich improves sales force automation. Besides this, a centralized call-centerwas established to address customer complaints efficiently from adequatelytrained technicians and specialists with an objective to boost service quality.
Thecompletion of 40 years of growth has seen the development of a plethora ofconsumer products such as inverter & inverter batteries, electric waterheaters, solar water heaters, domestic switch gears, house wiring cables,induction cooktops, mixer grinders, solar inverters, fans and gas stoves,etc. V-Guard’s continued innovation reflects on the company’s ongoingcommitment to deliver quality and robust products.