From its humble beginnings in Kerala, V-Guard Industries went public in 2008 and has since evolved into a prominent pan-India brand, reaching revenues of ₹4,850 crore. The company is now poised to enhance its manufacturing capabilities in 2025 by setting up three new factories in Vapi (for kitchen appliances) and Hyderabad (for batteries and fans).
New Factories to Boost Domestic Production
V-Guard’s strategic move to strengthen in-house production aligns with the “Make in India” initiative. Currently, over 65% of its products are manufactured internally. The new factories will play a crucial role in bolstering this figure.
The Vapi and Hyderabad battery units are already operational, with formal inaugurations scheduled for this month and the next. Mithun Chittilappilly, Managing Director of V-Guard Industries, stated that the company is committed to supporting domestic manufacturing and exploring new technologies to stay ahead in the competitive market.
“We have leased nine acres in the industrial town of Medchal on the Nagpur Highway in Hyderabad for setting up a three lakh sq ft fan production unit,” said Chittilappilly during an interaction with BusinessLine.
Expansion into Battery Technology
The lead-acid battery plant, located on the Bangalore Highway about 45 km from Hyderabad airport, has a production capacity of 3.6 lakh inverter batteries annually. These initiatives are part of the company’s broader strategy to explore alternative battery technologies and strengthen its manufacturing footprint.
V-Guard has also acquired stakes in Gegadyne Energy, a start-up focused on developing innovative energy storage solutions. Gegadyne’s alternative battery technology is seen as a potential game-changer in the energy storage sector.
India’s home inverter and battery market, valued at around ₹14,000 crore, is highly competitive. V-Guard aims to secure a strong foothold in this market, leveraging its existing capabilities and new technological advancements.
Market Performance and Challenges
V-Guard has achieved significant market shares in various segments within the organized sector:
- 40-45% in stabilizers
- 14-16% in water heaters
- 8-9% in wires
- 5-7% in inverter batteries
- 5-7% in fans
Addressing the challenges posed by fluctuating raw material costs, Chittilappilly said, “We typically pass cost increases on to consumers. Simultaneously, we are exploring alternatives to copper and leveraging technologies that enable efficient production without compromising on quality.”
Innovation and Future Plans
As part of its innovation drive, V-Guard is establishing a state-of-the-art Innovation Campus in Kochi. Phase I of this 1,11,000 sq ft facility will include:
- An R&D Centre
- A Reliability Lab
- A Product Design Studio
- A Training Centre
Despite a slowdown affecting middle-class consumption, some product categories have performed well. Summer-dependent categories saw exceptional sales in Q1, while the luxury segment continues to thrive.
The company’s expansion plans and innovation initiatives are expected to solidify its position as a key player in the consumer electronics and electrical sector, ensuring sustained growth and market relevance.
