Corporate Governance at Havells

Who we are is defined by what we do and how we do it.

This simple philosophy underlines our approach to Corporate Governance. So, if profit is our
intention, how we achieve this profit is a part of our Corporate Governance. For us, Corporate
Governance goes beyond philanthropy and compliance but actually deals with how we manage
our triple bottom lines – economic, social and environmental impacts. It monitors our role as
well as the quality of our relationships in key spheres of influence including the workplace, the
market place, the supply chain, the community and the public policy realm.

As a Company, we distinguish ourselves in the market by offering a portfolio of ecologically

responsible electrical products and services that deliver powerful, sustainable, and energy
efficient solutions that do not compromise on capacity or security.

Our eco-friendly approach is evident in our efforts to develop an alternate energy strategy so as
to reduce the environmental impact of our business. We are equally committed to managing a
responsible supply chain in a manner that is consistent and compliant with our high standards for
environment and business practices.

We recognize that there are barriers that 'constrain innovation, both, in individuals and
communities, and we work to overcome them.' We build communities and promote the exchange
of ideas through assistive technologies; participative programs and standardization that
transforms the way people experience our products. Our energy efficient solutions enable people
to save money and protect their capital investment while also lowering their energy usage and
protecting the environment.

This contributes to our CSR responsibility of sustenance of depleting environmental resources.

Corporate Governance and Ethics

As a Company we have always worked on the side of ethics and have shunned expediency in any
form. We believe that if something is important enough to be done, it is important that we do it
ethically. We supplement our traditionally held values of ethical behavior and moral conduct
with explicit rules and regulations that guide our efforts in financial, propriety, customer care and
business excellence.

We uphold the policy of "Leadership with trust" that has come to play a vital role in how our
customers perceive us. This is important, given the climate of unparalleled public distrust of
people in positions of power and authority in contemporary business and politics.

s
Research and Development
Havells focuses on innovation as one of the main pillars for growth. An on going research based
on new ideas, inventions gives our work force a new direction towards technical progress.

We have always worked towards making a difference with our products. All of our innovations
focus on making a valuable difference to our customer's lives. Our products like wires – that
don't catch fire, or water heaters – that keep water hot for 24 hours and use little electricity and
more are all made with attention to detail- enabling us to fulfill their responsibility towards our
end user.

Our teams are also focused on providing best products with zero defect services to enable them
to be comfortable and secure in usage of electricity.

Havells has dedicated R&d centers in all its plants and at head office. The centers closely co-
operates and work with various department to provide the best and the latest in the term of
technology and design.

Quality Control

We are conscious of good quality products manufactured at our plants. Various quality control
measures are taken to deliver products that are safer, faster and simply better. Our teams realise
and respect the basic requirement of our customers for a secure appliance and so we have
committed ourselves to create world-class products in India to maintain the quality globally.
All our products are as per IEC standards. QRG has a simple rule on quality- If it doesn't exceed
customer expectation, it's not quality performance

Manufacturing Facilities
As a manufacturing-oriented organization that works on the principle of 'Make in India', we do
not focus on productivity alone. We work towards creating harmony between manufacturing
output and efficiencies that deliver social, economic and environmental sustainability.

We have adopted world-class technology and automation to ensure that we produce our goods
efficiently with emphasis on conservation of energy and water in a sustainable manner. We
pursue methodology of Total Quality Managment to improve product quality and recycle and
reuse our waste materials.

We lay great emphasis on employee safety and accord it utmost priority. We have created and
sustain a work culture that is inspired by the Japanese Kaizen methodology.

Each plant works towards energy and process efficiency along with being socially responsible
towards the resources of the village or town it is housed in.
Alwar

Did You Know?

 Havells industrial and domestic cables are manufactured in Alwar, Rajasthan. It is spread over an
area of 100 acres & is the largest integrated single location cable plant in the country.
 Established: 1996
 Plant Area: 100 Acres
 Manufactures: Cables and Domestic Cables
Baddi

Did You Know?

 We are India's No.1 MCB manufacturer.

 Established: 2004
 Plant Area: 21,254 Sq. Meters
 Manufactures: Switches and MCB's
Faridabad Plant

Did You Know?

 Havells is India's first ACB with "C3" technology using common height, depth & panel door cut-
out.
 Established: 1993
 Area: 1,50,000 Sq. feet
 Manufactures: Havells domestic and industrial switchgear – distribution boards, changeover
switches, control panels, switch disconnectors and fuses
Haridwar Standard Plant

Did You Know?

 Standard has a wide presence in International markets.

 Middle East, South East Asian countries, Malaysia, Singapore, South Africa, Kenya, Ghana and
Nigeria
 Established: 2002 (acquired)
 Plant Area: 21,600 Sq. Meter 'In-house manufacturing Standard brand'
 Manufactures: MCB's, RCCB's, Distribution boards, fan assemblies and components, aluminium
blades and plastic components for TPW (table, pedestal, wall-mounted) fans.
Haridwar

Did You Know?

 We have the largest integrated fan factory in India located at Haridwar, Uttrakhand.
 Established: 2004
 Manufactures: Ceiling fans, TPW, Personal fans and Domestic exhaust fans.
Neemrana

Did You Know?

 Our is the largest and most automated water heater plant in India
 Established: 2004
 Plant Area: 48 acres
 Manufactures: Lighting fixtures, CFLs, HID Lamps and Motors
Sahibabad

Did You Know?

 Sahibabad is state-of-the-art low voltage power capacitor manufacturing plant at Sahibabad,

with machinery from Switzerland.
 Established: 2009
 Total area: 1,20,000 square feet
 Manufactures: Industrial switchgear –ACBs,MCCB, Load banks
 Capacitors, CFL components

Corporate Social Responsibility

Making Change: One Step at a Time
A journey of a thousand miles must begin with a step. At Havells, we believe in a journey of
small steps that lead to meaningful change in people’s lives. As an organization we are
committed to continuously improving our social responsibilities to make a meaningful impact in
the lives of others by aligning our initiatives to achieve goals of sustainability. In our focus of
business, our care for people, our love for local communities and our dedication to
environmental conservation, we have realized that the only way forward for us as a nation is by
giving back to the land which has given us all that we have. With our will, grit and courage, we
hope to lay the foundation of a better tomorrow by the small steps that we take today.
Our journey so far:

Havells Mid- Day Meal Program:

Every day too many men and women across the globe struggle to feed their children a nutritious
meal. In a world where we produce enough food to feed everyone, 795 million people – one in
nine – still go to bed on an empty stomach each night. Even more – one in three – suffer from
some form of malnutrition.
Guided by our ethos, eradicating hunger and malnutrition is one of the focus areas for us. Not
only the consequences of not enough – or the wrong – food cause suffering and poor health, they
also slow progress in many other areas of development like education and employment.

While the global community adopted 17 Sustainable Development Goals to improve people’s
lives by 2030 in 2015, we started working on the ‘Goal 2 – Zero Hunger’ way back in 2005.
In 2004, we started finding out reasons for non-availability of adequate manpower in nearby
areas of our Alwar plant. The research was heart breaking as it showed that children from nearby
villages did not go to school and were engaged in farms and other jobs to support family’s
income. Adequate food, even twice a day was a big challenge for the family. Children were weak
and malnourished and going to school was not even considered by the family. Over time we
realized that providing food could be the answer to this puzzle. We tied up with the government
of Rajasthan to provide mid-day meal in government schools.

A humble beginning that started with serving just 1500 children across 5 schools grew to serving
over 59,000 students across 693 schools daily in the district. The fresh, hygienic and nutritious
food is prepared in the state-of-the-art kitchen in accordance with government-approved diet
charts. Spread over an area of 4 acre, the kitchen employs staff of over 160 people including
cooks, helpers and drivers along with a fleet of 26 vans to ensure hassle-free and timely delivery
of the meals every day. Ownership of the entire mid-day meal value chain from procurement of
food materials to food preparation, storage and transportation to school, gives the company
complete control over the quality and hygiene of the meals. This goes in line with Havells
philosophy of providing the best quality in all company offerings.

Sanitation:

Havells understands that WASH (Water, Health and Hygiene) are critical for ensuring overall
development of children and their families. Focus on WASH program in schools stems from our
efforts to realize our vision of a world where all children go to school that provides safe, healthy
and comfortable environment where they grow, learn and thrive. Schools also are powerful
agents of change for enabling and encouraging changes in the society as well.
We decided to take the first step from Alwar where we are already running our flagship program
of mid- day meal. A research was done to understand the present situation and few of the
observations were:
• Only 70% of the students used toilets that were available in all schools
• In most schools toilets were clogged with mud and fecal matter
• Water was not available in the toilets to flush waste or for personal hygiene.
• Adolescent girls were found to be absent during menstruation as the toilet was unfit for use. A
similar situation was seen when children would prefer to stay back home rather than attend
school on days when they had dysentery.

Keeping these issues in mind, Havells initiated a sanitation drive in 2014 in government schools
of Alwar district wherein the company built eco-friendly bio-toilets. These eco-friendly bio-
toilets use special bacteria developed by DRDO (Defence Research & Development
Organisation) to convert human waste into biogas and water. The water can be used for
gardening, cleaning or ground water recharge. Havells has built over 2800 bio-toilets in 366
government schools in Alwar district of Rajasthan. We have started the next phase of bio toilet
building in 100 such govt. schools of Alwar where we do not provide mid- day meal. This
initiative of Havells amalgamates perfectly with the ambitious ‘Swachh Bharat Mission’
advocated by the Government of India and dovetails with United Nations Sustainable
Development Goal No-3 & 6.

Sensitization towards behavior change:

The next step in this direction was to sensitize students as well as the teachers about the
importance of WASH. We invested in behavioral change sensitization workshops not only for
the children but also for the school teachers who could further educate parents and the public at
large about the importance of Sanitation, cleanliness and hygiene in particular.

The implementation of behavior change workshops aims to develop good hygiene habits
amongst children from tender age. Activities like songs, wall paintings, rhymes, quizzes,
painting competitions help children understand concepts better and are able to explain to their
parents and bring positive change in the family. Teachers are also being involved in the process
who in turn could educate parents and society at large.
We did not stop at building toilets or working on behavior change of children and teachers but
went a step further. While toilets are built but their upkeep was a major issue due to paucity of
funds at the school level. We decided to contribute equal amount of money as given by the
government to ensure these toilets are kept neat and clean and students use them regularly. A
strict vigil on upkeep of these toilets ensures the funds are used properly.

Another problem realized was the one faced by adolescent girls and could not be ignored was
high absenteeism from school and wrong myths about menstruation which hampered their health
and education.
To let them be away from this issue Havells joined hands with Project Baala wherein the young
rural girls are educated by spreading awareness about menstruation in rural schools & providing
eco-friendly sanitary napkins to them. The pad is made of three layers of cloth stitched together,
is reusable and can be used for a period of 1.5 to 2 years. The project is the brainchild of one of
the two young women who visit different villages across India to conduct awareness workshops
in schools and distribute a kit of 3 pads to every participant.

To begin, a kit of these 3 sanitary pads was given to 1165 girls of 3 government schools of Alwar
district. This was the first set of pilot group, to understand the impact of the project and also the
acceptability rate, both of the young girls and the community at large. We have been successful
in receiving a very good response and hence we planned to take it to the next level. We are now
distributing these kits to 22, 000 girls across 285 schools in the Alwar District.
With these small steps, we take a 360 degree approach to this major problem of sanitation.

All these initiatives helped improve attendance, health and cognitive development, increased
girls’ participation, established positive hygiene behavior and offers the opportunity to introduce
better WASH practices in families and communities and addresses issues of inequity and
exclusion.

CONSERVING HERITAGE

For every country its heritage is its pride. And India’s heritage is definitely one of the richest in
the world. So it’s the responsibility of every citizen of the country to be more thoughtful towards
their heritage. We’ve always thought of future generations when it comes to being socially
responsible. We realise the need to preserve our heritage and pass it on to the future generations
in the best possible condition.
Keeping that in mind, Havells tied-up with Aga Khan Foundation India (AKFI) and will
contribute towards building Humayun's Tomb Interpretation Centre. The 10,000 sqm facility is
the first-of-its-kind facility planned at any of Delhi's World Heritage Sites and is expected to
receive 2 million visitors annually. Not just that, the proposed Interpretation Centre will be the
largest public cultural facility built since the National Museum. Havells will also help Aga Khan
Foundation to conserve the monument of national importance called the "Sabz Burj” situated at
Nizamuddin in New Delhi. And we hope to keep contributing towards preserving our wonderful
heritage.

THE FIRST ‘WATER POSITIVE COMPANY’

We are not just working towards improving the present but future too. In a significant milestone
on our sustainability journey, we’ve become India’s first FMEG Company to achieve ‘Water
Positive’ status duly verified by SGS, a renowned Environment, Health & Safety auditor.
A number of initiatives were undertaken across all plants to achieve this status. All plant sites are
zero discharge facilities and are equipped with modern water harvesting systems. The company
reduced its water usage by regular metering, monitoring and controlling of utilities consumption
at all manufacturing sites.

AN ENVIRONMENT FRIENDLY COMPANY

Havells has been focusing on tree plantation nearby its manufacturing plants. We have planted
over 10,000 trees in and around our plants in Alwar, Rajasthan and Baddi, Himachal Pradesh and
plan to add a huge number soon in various other locations in India. We will then become a
carbon positive organization too, bettering our existing status of being the First water positive
company.
We have now signed a MoU with the Madhya Pradesh government under which we are planting
1 lac trees each for the next 5 years. We have also tied up with 3 panchayats in Neemrana to
plant another 1 lac trees in the current year. We are also building a “Kanya Upvan” in the Alwar
district of Rajasthan by planting a tree on the birth of every girl child in the district.

SUSTAINABLE CSR- BENCH DONATION

We create tables and benches from the waste wood at our Alwar, Neemrana and Haridwar plant.
These tables and benches are donated to Govt. schools in respective areas. Till date we have
donated 45 in Alwar, 322 in Neemrana and 892 tables and benches in Haridwar. This is an
ongoing activity across these three locations and we intend to keep increasing the numbers and
distribute more and more such infrastructure for the education and physical well- being of the
school children.

SKILL DEVELOPMENT: The focus of Havells CSR initiatives has always been children and
youth of the country. Contributing to the development of their future, we recently launched
Havells first Electrical Skill Development Center at ITI, Nagaon in Assam. The center would
enable students to hone their skills with latest equipment and contribute to the growth of the
nation. The second Electrical Skill Center has been launched at ITI Pusa, Delhi.

HEALTH CARE: Thalassemia major is a genetic disorder and the only available curative
option is Bone Marrow Transplantation. The cost of transplant is beyond reach of children
coming from low socio-economic strata and through this project SEAIT (South East Asia
Institute for Thalassemia) intends to provide an opportunity for cure to at least two children who
otherwise cannot afford the procedure. We have adopted 2 thalassemia child patients in Jaipur
for this treatment and have contributed 20 lacs for this.

KERALA RELIEF FUND: Havells India Ltd. employees and dealers have donated an amount
of Rs. 5 Crores for Kerala Distress Relief Fund.

Sustainability
Introduction
Living Green Ethos. Innovating New Efficiencies. Driving Consumer Satisfaction. This is the
motto of our triple bottom line performance. Havells India Limited has a strong global footprint
with privileged market dominance. We are one of the fastest and most diversified FMEG
manufacturers with 17 business verticals.
"We hold ourselves to the highest ethical standards. We believe that engaging with our
stakeholders, measuring our progress against sustainable growth aspects and transparently
disclosing our triple bottom line performance will allow us to improve our performance,
and be active on the journey of continuous self-evaluation and improvement." – Mr. Anil
Rai Gupta, CMD

We, at Havells, are focussed on delivering powerful, sustainable and energy efficient solutions.
In order to sustain our growth, we are working towards innovative practices in our daily
operations while fulfilling our socio-environmental obligations. In our pursuit, we have started
working towards identifying and implementing systems and processes for ensuring a sustainable
future for our organization, our people and the society as a whole.

Our sustainability vision is to:

 Reduce CO2 Emissions

 Improve Environmental Protection
 Improve Quality of Life
 Offer Profitable Solutions to Market

Havells Product Range Is Radioactive Free

In FY 2013-14, Havells eliminated the use of trace Kr-85 radioactive isotope from the entire
CMI (Ceramic Metal Halide) lighting range. No product of Havells now has radioactive
components.

At Havells India Limited, "sustainability" means that we conduct our business in a manner that
supports the need for future generations to enjoy a quality of life that is at least equal to that
which we enjoy today. In this regard, "sustainability" means striking the appropriate balance
between our environmental responsibilities, financial performance, and social commitments.
Only through achieving this balance on a continuing basis can the Havells enterprise truly be
sustainable.

In our endeavour to achieve this, we now have:

 4 zero water discharge facilities

 No hazardous elements in 4 of our products: CMI Lamps, Cables, Wires, LEDs
 2 renewable energy initiatives: Biomass, Solar lamps
 4 resource conservation initiatives across plants

Currently 70 per cent of our product offering is energy-efficient.

We are constantly working towards improving our sustainability data collection systems, and
disclosing our performance across various social and environment aspect areas, besides
economic, including employee learning & development practices, health & safety performance,
product responsibility initiatives, approach and initiatives for CSR, innovation in raw materials
use, energy footprint and mitigation initiatives, and water use management beside others. The
details of these and our other sustainability initiatives and achievements can be found in our
annual.