V-Guard to Boost In-House Production and Strengthen Manufacturing Capabilities.

V-Guard, a leading consumer electronics and electrical brand, is set to enhance its manufacturing capabilities in 2025 with the establishment of three new factories in Vapi (Kitchen Appliances), Hyderabad (Battery), and Hyderabad (Fan). This strategic move aims to bolster in-house production, which already accounts for over 65% of the company’s product output.

The Vapi and Hyderabad battery units are already operational, with formal inaugurations planned for later this month and next month. Mithun Chittilappilly, Managing Director of V-Guard, emphasized that the company's expansion aligns with its commitment to supporting domestic manufacturing under India’s "Make in India" initiative.

“We have leased 9 acres in the industrial town of Medchal on the Nagpur Highway in Hyderabad for a 3 lakh sq ft fan production unit,” Chittilappilly said in an interview with BusinessLine. The new lead-acid battery plant, located about 45 km from Hyderabad airport, is designed to produce 3.6 lakh inverter batteries annually. These initiatives, along with the Vapi facility, reflect V-Guard's broader strategy to explore alternative battery technologies and strengthen its manufacturing footprint.

Additionally, V-Guard has acquired stakes in Gegadyne Energy, a start-up focused on developing innovative energy storage solutions. Gegadyne’s alternative battery technology is poised to revolutionize energy storage, positioning the company as a key player in the competitive ₹14,000 crore home inverter and battery market.

From its humble origins in Kerala, V-Guard went public in 2008 and has since evolved into a pan-India brand, with revenues reaching ₹4,850 crore. The company holds significant market shares in the organized sector, including 40-45% in stabilizers, 14-16% in water heaters, 8-9% in wires, 5-7% in inverter batteries, and 5-7% in fans.

Addressing challenges posed by rising raw material costs, Chittilappilly explained, “We typically pass cost increases on to consumers. At the same time, we are exploring alternatives to copper, leveraging technologies that enable efficient production without compromising quality.”

Despite the slowdown in middle-class consumption, certain product categories have performed well, with summer-dependent items particularly strong in Q1. The luxury segment also continues to show growth.

As part of its ongoing innovation drive, V-Guard is setting up a state-of-the-art Innovation Campus in Kochi. The first phase of the 1,11,000 sq ft facility will include an R&D center, a Reliability Lab, a Product Design Studio, and a Training Center, further reinforcing the company’s commitment to innovation and growth.

HBL