V-Guard's Strategic Pivot: From Stabilizers to Lighting Dominance
In a bold strategic move that marks its most significant market entry in recent years, V-Guard Industries is preparing to challenge established players in India's intensely competitive lighting market. The Kerala-headquartered company, once predominantly known as a stabilizer manufacturer, is now completing its decade-long transformation into a comprehensive electricals powerhouse by venturing into the one major category it had long avoided.
According to Managing Director Mithun Chittilappilly, lighting represented the final "white space" in V-Guard's electrical portfolio. "The three large categories within the electrical market are wires, which is the largest, followed by lighting, and then fans. We were already present in two, and are now entering the third one," Chittilappilly explained during a conversation with Mint in Cochin.
Phased Market Entry with Premium Focus
The company is currently assembling a dedicated team, finalizing its initial product portfolio, and preparing for a phased launch beginning in Kerala and Karnataka by the first quarter of the next fiscal year. Unlike many new entrants who typically begin with commoditized bulbs, V-Guard will focus strategically on higher-margin luminaires – ceiling-integrated fixtures including COB lights and strip lights.
This approach aligns with market dynamics identified by industry analysts. "Consumers want a reliable brand here because they don't want to tear up their ceilings every time a bulb runs out. Margins are better, and it's not a mass-distribution game where you simply offer a cheaper price or a higher retailer margin. The key to win profitably in lighting is functional luminaires," said Karan Bhatia, partner at EY-Parthenon.
Transformation Journey: Beyond Stabilizers
V-Guard's entry into lighting caps a remarkable transformation for the 48-year-old company founded in 1977 by Kochouseph Chittilappilly. The company that once derived nearly 60% of its revenue from stabilizers in 2008 has successfully diversified, with stabilizers now accounting for only about 15% of revenue.
Today, V-Guard's expansive portfolio spans three key segments:
- Electronics (stabilizers, UPS, inverters)
- Electricals (wires, pumps, switchgear, modular switches)
- Consumer durables (water heaters, fans, kitchen appliances, air coolers)
The company's financial performance underscores this successful diversification. In FY25, consolidated revenue rose 14.8% year-on-year to ₹5,578 crore, while net profit increased 21.8% to ₹313.7 crore. Although Q2FY26 showed more modest growth with revenue up 3.6% YoY to ₹1,340.92 crore, gross margins improved significantly to 37.6%, representing a 140 basis point increase.
Competitive Landscape and Market Opportunity
V-Guard enters a lighting market estimated at $11.56 billion in 2025 and projected to reach $16.63 billion by 2030, according to Mordor Intelligence. However, the space is fiercely contested by established players including Signify (Philips), Havells, Crompton, Surya Roshni, Bajaj Electricals, Syska, and Wipro Lighting, alongside a substantial unorganized segment that Chittilappilly estimates constitutes about 50% of the total market.
Signify remains the dominant player with ₹3,143 crore in total income and ₹270 crore in net profit in FY25. The company's strategic focus on luminaires targets the most lucrative segment, with Mordor Intelligence reporting that luminaires and fixtures accounted for 61.9% of market revenue in 2024.
Distribution Advantage and Acquisition Strategy
V-Guard's key competitive advantage lies in its extensive distribution network. The company estimates a roughly 90% overlap between its existing distribution for wires, switches, and switchgear and the lighting category. "Most of the large retailers for lighting are already selling other electrical products of V-Guard, so the entry barrier is much lower," Chittilappilly noted.
The company also revealed plans to potentially acquire a design-led lighting company to accelerate market entry. "While we can organically build out this category, we are looking for a good opportunity. Lighting is a design-driven segment, and if we find a firm that has design capability from an R&D point of view, we would like to have that. We are not looking at buying revenue," Chittilappilly emphasized.
This cautious approach to acquisitions follows mixed results from previous purchases. While the 2017 acquisition of Guts Electromech strengthened its switchgear business and acquiring the Indian operations of Spain's Simon Group helped build a ₹250 crore switches vertical, the ₹660 crore purchase of Sunflame in 2023 has underperformed expectations.
Growth Trajectory and Market Positioning
V-Guard has successfully evolved from a South India-focused brand to a pan-India powerhouse, with non-southern markets now accounting for 49% of total revenue. The company maintains dual headquarters in Kochi and Gurugram to strengthen its national presence and talent acquisition.
Chittilappilly remains ambitious, targeting at least 15% annual growth over the next five years. "We are still diversifying. We are still getting into categories which are growing faster," he stated, indicating that lighting represents just one component of the company's broader growth strategy.
The timing appears favorable, with macroeconomic trends supporting increased demand. A Grant Thornton report shows residential sales in major cities surged nearly 77% during FY19-25, creating robust demand for lighting solutions as India's housing, renovation, and urban development cycles accelerate.
As V-Guard prepares to take on established giants in the lighting arena, the company's scale of ambition, pricing strategy, and execution capabilities will ultimately determine whether this bold move becomes its next growth engine or its most challenging experiment yet in the competitive Indian electricals market.
