Born in 1937 to a lower-middle-class family with no business pedigree, Gupta, who was called Bhaisahib by older employees and QRG by others, defied the odds in the India of the 1970s, where connections and inherited wealth often dictated success. His story rivals the bootstrapped triumphs of global icons such as Sam Walton of Walmart and Ingvar Kamprad of IKEA, yet remains distinctly Indian in its context and execution.
At 21, QRG left for Delhi armed with little more than the will to succeed. He started working at an electrical goods shop in Bhagirath Palace, Delhi’s bustling wholesale market, learning the trade from the ground up. In 1971 he made a bold move, buying the Havells brand from Haveli Ram Gandhi for ₹7 lakh, a princely sum that he scraped together through sheer hustle.
Also read: Why LTIMindtree’s old-school tests may not work in an AI-driven world
In a market teeming with competitors such as Anchor Electricals, Crompton Greaves, Bajaj Electricals, and multinationals such as Siemens and GEC catering to the premium segments, QRG carved out a place for his fledgling startup. He transformed commoditised electrical components such as switches, wires, and miniature circuit breakers into branded products.
Intuitively, he also figured that the new post-Independence generation of Indians were emerging as avid buyers of fast-moving electrical goods such as fans and lights. This new cohort would want style and panache in fans and lights as they eschewed the humbler choices of their parents.
Rural opportunity
What set QRG apart was this foresight. In his book Havells: The Untold Story of Qimat Rai Gupta, Anil Rai Gupta, who’s headed the company since 2014, said his father believed that “Business is done with conviction, not a calculator.” Unlike his peers, who were fixated on urban centers, he also tapped India’s rural markets, which had been studiously avoided by larger companies reluctant to invest in the distribution network this would require. This was the key to Havells’s future success.
QRG built an extensive distribution network before fully committing to manufacturing. Once this was in place, he invested in world-class manufacturing, as Havells evolved from a trading outfit to a producer of quality, homegrown alternatives to imported goods. Its positioning was carefully chosen—offering reliable products at reasonable prices, bridging the gap between pricey multinationals such as Philips and cheap, unbranded alternatives.
Also read: How Manu Manek aka Black Cobra went from college trader to market marauder
Soon Havells became a feature of Indian households despite the presence of big brands in various segments. By 2000 the company was competing against multinationals such as Legrand, Schneider Electric and Philips, as well as Indian firms such as Finolex Cables, Anchor (later acquired by Panasonic) and L&T. Over the years, newer competitors such as Polycab and Syska also gained ground in emerging segments. Havells’s market share remained strong, however, ranging from 15-20% in switches and sockets and 10-15% of the overall lighting market.
Risky business
In 2007, the scrappy electrical goods company from Delhi made an audacious bet which equalled in degree, if not in scale, the Tata bid for Corus. QRG wasn’t content with domestic success and had always dreamt of going global. His eyes were set on Sylvania Lighting International (SLI), a Frankfurt-based giant with a century-old legacy and a presence in more than 50 countries. At $300 million, Sylvania was a behemoth, 1.5 times larger than Havells, with revenues dwarfing those of its Indian suitor. For QRG, it was a chance to catapult Havells into the big leagues alongside titans such as Philips, Osram and GE.
Also read: Vikram Sarabhai, the cosmic capitalist whose vision encompassed Indian industry
The acquisition was a complex affair, with Havells finally buying Sylvania with a mix of $265 million in debt from Barclays Bank and internal funds. For QRG, it was a coup. Sylvania’s European sophistication paired with Havells’s Indian manufacturing prowess promised a bright future through synergies from shifting production to India.
But the euphoria wouldn’t last long.
Just as Havells was finding its footing with Sylvania, the global financial crisis of 2008 plunged Europe, Sylvania’s stronghold, into chaos. Demand for lighting fixtures and electrical goods evaporated and Sylvania, already burdened by inefficiencies from years under private-equity ownership, began haemorrhaging cash. The debt that funded the acquisition was the proverbial albatross around its neck. The bankers delivered an ultimatum: repay the loan immediately or surrender the European company.
Never say die
This might have been a tempting thought – cut your losses and save Havells’s thriving domestic business. After all, Sylvania’s losses were dragging down Havells’s consolidated performance, threatening the entire enterprise. QRG’s reputation, built over decades of grit and ingenuity, hung in the balance.
But the septuagenarian founder wasn’t built for surrender. Along with his son and nephew, now a vital part of the business, he embarked on a restructuring that involved slashing Sylvania’s bloated workforce, closing unprofitable plants and warehouses, and cutting logistics costs. Havells emerged stronger from the near-death experience. In 2015 it sold an 80% stake in Sylvania to Shanghai-based Feilo Acoustics for more than ₹1,070 crore.
QRG’s life story is a powerful reminder that true success is built on vision, resilience, and the courage to take risks.
