V-Guard marks a milestone of excellence
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 and with Rs.1,00,000 borrowed from his father commissioned a small unit in Kerala to manufacture voltage stabilizers. In the next 4 decades, V-Guard has emerged as a respected pan-India brand synonymous with voltage stabilizers and including a diversified portfolio of modern value-enhancing products.
In the years that followed, V-Guard’s grand venture expanded from a dealer centric business approach to a consumer-centric business model. The business became more lucrative after the founder’s son, Mr. Mithun Chittilappily joined the business in 2005 and brought in a strong model to evolve V-Guards position in the market. In 2008 V-Guard became a public listed company with BSE and NSE. The positive impact that V-Guard had was stronger in South India. This gave the brand an opportunity to explore newer non-South markets. They set up factories in Kashipur, Kala Amb and Sikkim due to the growing demand for consumer electronics.
In 2012, when Mr. Mithun Chittilappily was appointed as Managing director, turnover crossed Rs.1000 Crores. V-Guard continued to introduce new products and explored more developing markets across India and 2013 set up the solar heater plant 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 to cross barriers and set up a Pan India presence.
Since 2015, V-Guard has been consistently growing and 2016-17 reported a 15 percent growth with an operating profit margin at 10.6 percent. In 2017 net sales crossed Rs.2000 Crores with an operating profit crossing 200 Crores which is a strong result for a business in this sector. In 2017 Q2 profit increased 25%.
Commenting on the milestone growth, Mr. Mithun Chittilappilly, Managing Director, V-Guard Industries Ltd, said, ‘The journey of 40 years is a testament towards our dedication to create a quality brand that appeals to every demography. Innovation has contributed to making us move from a manufacturer of back-end products to consumers-facing products and instill recognition & loyalty with our patrons’. We believe the growing demand in Non-South markets give us a wealth of opportunity to explore & build our presence there’.
Over the years, as V-Guard grew, the company introduced innovative processes to elevate its operations. V-Guard recognized the challenges and the need to derive a precise understanding of marketplace trends and moods.
V-Guard introduced various initiatives such as ‘Project Tez’ which allowed the company to engage more frequently with its trade partners with a sales force automation system that captures trade information on an electronic tablet. This gave access to marketplace realities with virtual real-time information. ‘Project Udaan’, another ingenuity redefined the art of Supply Chain Management transforming the way in which V-Guard planned production, sales, material procurement and finished goods delivery. The result delivered substantial gains, moderate inventories, strengthened working capital management and enhanced overall competiveness. V-Guard also introduced ‘Project Parivarthan’ to enrich its customer service experience by transforming its conventional service delivery model. The new service system was structured around Siebel-CRM which improves sales force automation. Besides this, a centralized call-center was established to address customer complaints efficiently from adequately trained technicians and specialists with an objective to boost service quality.
The completion of 40 years of growth has seen the development of a plethora of consumer products such as inverter & inverter batteries, electric water heaters, 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 ongoing commitment to deliver quality and robust products.