V-Guard Industries

Founded by Kochouseph Chittilapilly in 1977, V-Guard Industries started operations by selling voltage stabilisers. This Kerala-based corporate now sells a whole range of products that include stabilisers, UPS, inverters, PVS insulated cables, LT power cables, geysers, solar water heaters and fans among others. In the 36 years of operations, V-Guard has made a mark for itself in the stabiliser market where every third stabiliser in the organised market is sold by it. The three primary sources of revenue for the company are derived from voltage stabilisers, home wiring and pumps. Together these three divisions bring in 64 per cent of V-Guard’s revenues (FY12). As recently as FY07, around 97 per cent of the company’s revenues were derived from the South. Also, its dependence on voltage stabilisers -- which brought in 48 per cent of the company’s revenues (FY07), was a risky proposition. But post its IPO in FY08, the company set about to change its strategies, with expansion to new areas being the top priority. And introduction of new categories such as fans, digital UPS and induction tops was aimed at de-risking revenue streams. Today the contribution of South regions is restricted to 78 per cent of revenues (FY12) while stabilisers bring in around 21 per cent of total sales. Growth drivers From be

This article was originally published on May 28, 2013.