Surbhi Sabharwal

PGFA1957
Partner Analysis

The main objective of partner analysis is to define the objective and goals of the
organization and to choose the most feasible distribution network among various
distribution channels that are available to the company. Further partner analysis helps to
identify the major suppliers of the firm and thus help understand the supplier power.

Manufacturing Process of Fans

1. The first step in manufacturing of fan blade. The steel used in manufacturing is
procured from HINDALCO.
2. The blades are then cut and and painted using electrostatic liquid and powder
painting. This includes a seven step pre- treatment process.
3. The next step is manufacturing of Stator and Rotor. They are then assembled on the
conveyer belt.
4. The barcode is pasted is pasted on the fan and finally put to the packaging carton
with the blades.
Supplier relations
 The major raw material required in production of fan is CRCA steel, bearings and
brass coins.
 Havells categorizes its suppliers into low, medium and high risk based on various
assessments.
 Any supplier scoring less than 80% on this assessment are provided with a list of
recommendations and again assessed in a span of 3-6 months.
 For major suppliers such as HINDALCO, Havells has set up a HABIT (Havells Association
of Business Innovation and Transformation) society.
 All the other purchases are made via online vendor portal.
 Vendor commitment meeting is also organized every month to improve low
performing suppliers. This has helped to 80% of improvement.

Future Action
Since Havells has an in- house production of fans therefore it has a very less supplier
network. Havells however has a single large supplier of steel used in manufacturing of
fans. In this case HINDALCO enjoys a great supplier power. As per the sustainability
report 2019-19, Havells spends 98 crore for manufacturing of fans. In case, HINDALCO
rises the price of steel this would adversely affect the total expenditure on fans. Thus
Havells in order to reduce the supplier power should increase the network and find
new suppliers for steel that provides same quality.

Distribution Network

Havells follows two types of distribution channel, one is direct channel and the other is
indirect channel. The direct distribution channel includes 500 Havells Galaxy store.

(Fig 1) The indirect distribution network of Havells is as follows:

1. The fans are manufactured at the plant located near Haridwar, Uttarakhand.
 2. The fans are then supplied to the branch offices located in 24 states throughout
India.
Branches:
Bangalore, Baroda, Bhopal, Calcutta, Chennai, Cochin, Hyderabad, Jaipur, Lucknow,
Mumbai
Representatives:
Ahmedabad, Bhubneshwar, Chandigarh, Dhanbad, Guwahati, Indore, Jashedpur,
Jalandher, Ludhiana, Patiala, Pune, Sonebhadra, Varanasi
3. The branch office then supplies the fans to the distributors. Havells has about 7575
distributors in total.
4. The distributors then supply it to the retail shops. Havells has about 100000 retail
outlets throughout India.

Manufacturing Retailer- Mr.

Branch Office Dealer- Mr. DK
Plant- Haridwar Sanjeev Consumer
Bansal
Plant Khanduja
(9811916455)
(986134038)
Mr. Ankur
(9899862119
)
Havells galaxy Store
Fig 1

Benefit to Distributors

To maintain the relationship and motivate the distributors and retailers company provides
following schemes.
1. Foreign Trade Schemes (FTS) wherein company offers a foreign trip on the
completion of specific target in a given period of time for retailers.
2. Free of Cost (FOC) product scheme wherein company will offer free products on the
purchase for distributors.
3. Company also provides rewards on the basis of display of the product i.e. fan.
4. Discount schemes wherein discount will be provided on the purchase of certain
quantity of fans. (Cash discounts)
The schemes mentioned above may vary from region to region.

Future Action
As per Mr Sourabh Chaturvedi (management trainee), the major supply chain of Havells fan
is dependent on its large network of dealers and distributors. In order to maintain a good
relation with them Havells provides a higher margin to its distributors than the industry.
Havells should aim at engaging more distributors by making them aware of the financial
benefits that they would receive through association with them. It should come up with
innovative schemes to increase the profitability of the dealers.