Markets
Havells India is insuring its growth strategy with a stake in Goldi Solar
Summary
- The move reflects Havells’ broader strategy of securing critical inputs as it expands into energy solutions.
Havells India Ltd is buying insurance against a policy-driven supply squeeze in solar components. The consumer electricals major has picked up an 8–9% stake in mid-sized solar module manufacturer Goldi Solar for ₹600 crore—securing domestic capacity in a sector where the government is actively curbing import dependence through the BIS regime.
Havells already sells inverters, modules, solar cables, and DC switchgears under its 'others' segment, which contributed ₹1,000 crore—or 6.6%—to 9MFY25 revenues. While still a small slice, the segment's growing relevance makes supply security a strategic call.
Goldi Solar, for its part, is scaling rapidly. Its module manufacturing capacity has jumped from 2.9GW in March 2024 to 10.7GW by March 2025, with another 4GW expected by July. According to Kotak Institutional Equities, the company’s total 14.7GW capacity has a peak revenue potential of ₹12,900 crore (assuming 60% utilization).
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It is also moving upstream by backward integrating into solar cell manufacturing—a space still dominated by Chinese players despite India’s push to localize. Setting up cell and module lines is capital-intensive and sensitive to policy risk, so a minority stake offers Havells supply security without overexposure.
Moreover, Havells isn’t stretching itself. It had cash reserves of ₹2,710 crore as of December. Its final stake in Goldi will range between 8.90% and 9.24%, depending on the total size of the ₹1,050–1,300 crore primary round.
The investment is effectively priced at a 20x EV/Ebitda multiple, based on Goldi’s unaudited FY25 provisional numbers. This is slightly below peers like Waaree and Premier Energies, which trade at 22–23x, according to Kotak Institutional Equities. Goldi’s margins aren’t yet at Waaree’s levels, which explains the discount.
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The deal also fits into Havells’ broader capital allocation playbook.
“Over FY20-24, capex for Lloyd stood at ₹770 crore, accounting for about 36% of the company’s total capex during this period," said a Motilal Oswal Financial Services’ report.
Lloyd's business includes room air conditioners (RACs), refrigerators and washing machines. It plans to expand RAC manufacturing capacity by Q4FY25 with an additional ₹50-60 crore capex, and is also looking to invest ₹480 crore in a premium refrigerator plant in Rajasthan. Cables, wires, and lighting are also seeing fresh capex, to capture housing and infrastructure-led demand.
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With tailwinds from housing, infrastructure and energy-efficiency trends, Havells is positioning for higher-quality growth backed by premiumisation, backward integration and brand-led pricing power. Valuations capture this optimism. The stock trades at about 54 times FY26 estimated earnings, as per Bloomberg data.
