Havells' 2023 move to tap Delhivery for factory-to-customer supply chain resurfaces
Back in August 2023, Havells awarded Delhivery a contract to design, build and operate its factory-to-customer supply chain, with new western India warehouses planned to serve general trade, modern trade and e-commerce demand.
What happened
Havells India · Havells awarded Delhivery a contract to design, build and operate its factory-to-customer supply chain. The partners will open warehouses in
Key facts
- Delhivery began providing PTL services to Havells in 2017
- Delhivery Q2 FY24 net loss: Rs 102.94 crore
- Net loss declined 59.5% year-on-year
- Published August 9, 2023
Why this matters
The deal highlights the strategic value of acquiring or partnering for warehousing, inventory-optimisation and omnichannel orchestration capabilities as brands consolidate logistics vendors.
What to watch
- Number, location and go-live timing of planned western India warehouses
- Changes in Havells inventory days, logistics cost as a share of sales and working-capital commentary
- Reported fill rates, delivery lead times and stock-out rates across general trade, modern trade and e-commerce
- Evidence of distributor pushback, channel-margin changes or altered dealer replenishment policies
- Delhivery disclosures on warehousing revenue, contract tenure, dedicated capacity and customer concentration
- Expansion of the operating model beyond western India or into returns and installation logistics
- Havells is likely to phase in western India warehouses first, prioritising high-demand electrical, appliance and seasonal SKUs.
- Delhivery will likely deploy control-tower, transport-management and inventory-visibility capabilities beyond its existing part-truckload freight role.
- Havells may rationalise regional stocking points and redesign dealer replenishment rules once service-level data is established.
- Competitors in consumer durables may seek comparable integrated logistics contracts or expand captive distribution capabilities.
- The partnership could expand to other regions and add reverse logistics, installation-linked delivery and direct-to-consumer fulfilment if western India performance meets targets.