Rooftop solar, lighting and B2B to shape V-Guard's next phase: MD Mithun Chittilappilly

For nearly five decades, V-Guard Industries has been synonymous with voltage stabilisers. In the past few years, the Kochi-headquartered company has transformed itself into a diversified consumer electricals and appliances player with products spanning wires and cables, switches, pumps, fans, water heaters, kitchen appliances and rooftop solar solutions.

Now, as it closes in on ₹6,000 crore in annual revenue, V-Guard is preparing for its next phase of growth - one that will be driven by new product categories, deeper manufacturing integration, a stronger business-to-business (B2B) presence and emerging opportunities in renewable energy.

In an interaction with Fortune India, Mithun K. Chittilappilly, managing director of V-Guard Industries, said the company has strengthened its preparedness to deal with commodity inflation through early procurement, calibrated price revisions and cost optimisation measures.

"We had early warning systems in place. We secured supplies, took price hikes wherever necessary and implemented cost reduction initiatives," he said.

Chittilappilly added that demand remains sensitive to commodity-driven price increases, as higher prices can prompt consumers to shift to lower-priced products.

Focus on home portfolio expansion

The company's next growth phase revolves around strengthening its position as a complete home solutions provider. Having expanded well beyond stabilisers, V-Guard is now entering the lighting segment, the only major category missing from its portfolio.

"We have one big category that we were not addressing, which was lighting and luminaires. To complete our portfolio and offer the full range to both trade partners and end consumers, we are getting into lighting," says Chittilappilly. Residential lighting products will be launched in phases over the next three to six months.

Another category on the company's radar is air fryers, reflecting changing consumer lifestyles.

"Earlier it was a niche urban phenomenon. Today, with lifestyle diseases becoming more prevalent, consumers are moving towards healthier cooking methods. Air fryers have now become close to a ₹1,000-crore market."

Yet, V-Guard remains selective about diversification. "It doesn't make sense for us to invest behind very tiny categories. We enter only when the market reaches a meaningful size and when we are reasonably confident it is not just a fad," he said.

Betting big on rooftop solar

Among all the opportunities ahead, rooftop solar excites Chittilappilly the most. Backed by rising electricity tariffs and the government's push towards renewable energy, he sees the category evolving into one of V-Guard's largest businesses.

"Solar rooftop is a category that has the potential to become very large. Today only a handful of states are adopting it meaningfully, but adoption is increasing rapidly."

The scale of the opportunity, he believes, is significant.

"Our largest category today is wires and cables with roughly ₹1,600 crore in revenue. We believe rooftop solar can become as large as that over the next seven to eight years."

The business is already expanding at a rapid pace. "We're seeing growth of 50% to 70% annually. We've only started scratching the surface."

Building a B2B growth engine

Besides, V-Guard is mulling to build a meaningful B2B business after decades of focusing almost exclusively on consumers.

"Traditionally, V-Guard has been a B2C company. We hardly dealt with governments, builders or institutional customers," Chittilappilly says.

That is changing. The company is building dedicated capabilities to participate in government tenders, solar pump programmes and partnerships with organised real estate developers.

"The real estate sector has become much more organised. Earlier there were thousands of small builders. Today there are fewer but much larger developers. We want to partner with them and supply our products."

He believes these channels can become an important source of incremental growth, particularly in southern India where V-Guard's retail distribution has already reached deep market penetration.

Scaling up manufacturing

Alongside expanding its addressable market, V-Guard is also reshaping its manufacturing model. Nearly a decade ago, the company produced only 25-30% of what it sold. Today, close to 70% is manufactured in-house.

"Over the next few years, this will move to around 75%," Chittilappilly says.

Over the past nine years, the company has invested around ₹500 crore in manufacturing facilities and now operates 15 plants across seven states. The move, he says, has been driven by GST-led efficiencies, faster product innovation cycles and the need for tighter control over quality and product development.

Even as international expansion remains a low priority, Chittilappilly sees ample room for growth within India. V-Guard's strongest presence continues to be in southern markets, while large parts of northern and eastern India remain underpenetrated.

As electrification deepens, organised housing expands and consumer aspirations rise beyond the metros, the company believes its diversified portfolio positions it well to capture the next wave of demand.