“Rising Mercury Driving Cooling Market Growth”

Achal Bakeri, CMD, Symphony reveals, “The rising mercury is a major growth driver for air-cooler manufacturers.” Due to global warming the demand for air coolers is going up considerably and new demand is emerging from even relatively colder countries like Russia and Ukraine.
What is your assessment on the air-cooler market in India?The Indian air-cooler market carries immense growth potential and is all geared up to soar new highs. The current global financial crisis has not much affected the demand as the extended Indian summer has propelled air-cooler demand. The Indian market for air cooler is mainly divided into two major categories – organised and unorganised. Both the organised and unorganised sectors account for almost equal market share each. In India, the total market size of air-cooler industry is estimated to be around Rs. 1000. Currently, the Indian air-cooler industry is growing at a strong 30 per cent rate per annum.
Symphony Limited is the world leader in air-cooler industry with a strong presence in over 60 countries. In India, with approximately 50 per cent market share in organised market, Symphony is the no.1 air cooler company.
Discuss about the major growth drivers and your key focus areas.For Symphony, there are a number of factors contributing to company’s impressive growth over the past few years. First of all the rising mercury is a major growth driver for air-cooler manufacturers. Heated up globe has encouraged consumers to choose an air-cooler over an air conditioner because air-coolers are less expensive and consumes less electricity as compared to air conditioners. Moreover, nowadays the room space in homes has been squeezed and air cooler is the best option to cool small space. However, pricing has been the main growth driver for increased demand of air-coolers. Generally, an air conditioner costs between Rs. 23,000 to Rs. 35,000 and it also consumes more electricity. On the other hand branded air coolers like Symphony air coolers cost between Rs. 4,500 to 15,000. Further, air coolers are environment-friendly. Unlike air conditioners, which release CFC (chlouroflourocarbon) gas, air coolers do not emit hazardous greenhouse gases responsible for global warming and other environment-related problems.
Constant design-driven innovation, product development and green-engineering are the core areas of focus for Symphony since its inception in 1988. We strongly believe that environment friendly technology will enable us to produce more energy efficient products, which shall be a first choice of the health conscious consumers.
In the wake of rising demand of air-coolers from overseas markets, currently we are focusing on expanding our international dealers’ network from 60 countries to 100 countries in the next few years.
What is your current order booking? Is there any kind of sluggishness in the demand of air-cooler? If so, why?Our presence in global markets also helps us to de-risk the seasonal susceptibility in India. So, there is a constant flow of demand for air-coolers across the globe and that keeps the order book rolling. Due to global warming the demand for air coolers is going up considerably and new demand is emerging from even relatively colder countries like Russia and Ukraine. Coolers are ‘plug and play’ products. In western countries, houses are not designed for summer. Also, people in the west have lower tolerance to hot temperatures compared to Indians. Hence, there is an enormous scope to market coolers in western countries. North and South America are big markets for coolers. In Eastern Europe, there is a great demand for these products. There is also a big demand for coolers in the Middle East, North Africa and South Africa. South Asian countries too are big markets.
Is the current economic situation a threat for Indian manufacturers?In India, especially among the mid-income groups, there is a huge demand of air coolers. Especially, our products, which offers great value of energy efficiency with a stylish look that resembles an air conditioner. Moreover, the price factor is also another key element responsible for increased demand of air coolers in India. Generally, an air conditioner costs between Rs. 23,000 to Rs. 35,000 and it also consumes more electricity. On the other hand branded air coolers like ours cost between Rs. 4,500 to 15,000. Also, our air coolers consume 90 per cent less electricity as compared to an air conditioner. Entire North India is a key market and demand is whopping. Moreover, a steep rise in air cooler demand has been registered in Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Gujarat and Maharashtra.
Being an Indian manufacturer, how do you plan to divert the stream in your favour?Tomorrow’s world needs environment-friendly, energy conserving solutions and products. With increased global warming and environmental degradation, people around the world recognise that businesses must act responsibly and offer green products to customers. We utilise high performance technology and innovation in design to achieve superior performance and dramatically reduce the energy consumed by our products. Our energy-efficient products help consumers save money both during purchase and day-to-day maintenance.
Symphony enables people across the world to capitalise on eco–friendly an energy-saving air cooling technologies as a serious alternative to harmful and inefficient air-conditioners. We believe an environment-friendly approach transcends commercial considerations and a cleaner environment is the best legacy one can leave behind for future generations. Symphony’s power-saving technology is currently the only air cooling technology in the market that complies with international standards for product energy efficiency.
A remarkable feature of our products is its effortless design simplicity. Our sleek models eliminate the bulk and noise that characterise conventional coolers. They are more reliable and durable than conventional air coolers and feature an enhanced life-span. The simplicity of our product design translates into a reliable, hassle-free air cooler that is easy to fix without compromising on style.
Design-driven innovation in our manufacturing processes gives us a sustainable competitive advantage. Symphony’s commitment to innovation across its products reflects in its outstanding energy efficiency, innovative styling and customer-centric design.
At Symphony, we invest in research and development for new products and IPR (Intellectual Property Rights)-driven technology inventions to maintain and increase our market share and brand leadership. We are constantly innovating to refine our products from ideas to prototypes, development and commercialisation whilst creating new markets.
We believe, innovation comes from passionate and dedicated people. Symphony is driven by employees who are proud to offer evaporative air cooling products and solutions people use every day. Utilising an extensive network of engineers, product designers and green engineering concepts; we are consistently developing new technologies that deliver responsible product design along with eco-friendly products that inspire consumers to adopt sustainable behaviour.
Popular brands like LG, Samsung, Hitachi, Daikin and Panasonic are present in this segment; how were you able to create your own position?These brands are the leading players in the AC segment. None of these are present in our category. But in over-all cooling device category we’ve been able to make our presence felt across the industries.
Since the inception of the company, we strictly kept in mind to offer an air cooler that looks like an air conditioner and at the same time gives a better value for money to the customers. Design, innovation, brand and network are Symphony’s four main pillars. As part of the technological innovation, Power Saver Technology (PST) is one of the key features. PST enables us to reduce power consumption and to increase the energy efficiency of our products.
Moreover, Symphony air coolers have an array of features for the consumer such as powerful air throw, space saver, large tank capacity up to 100 liters, high-efficiency cooling pads, full function remote, LCD display and a seven-speed option, etc.
Constant product development is the focal point of Symphony. Every six months we come up with a new product. Currently, we offer a total of 15 different models in desert, tower and room and personal air cooler segment. We have launched world’s tallest air cooler ‘Storm’, which is aimed at cooling large space up to 1000 square feet.
Moreover, we have just launched industrial air coolers to cater to the growing demand from various production facilities. In the industrial air cooler segment we have launched industrial HPP, industrial fan, industrial premium, ducted coolers and mobile coolers.
You acquired a North American company IMPCO, could you brief us on this acquisition?Symphony acquired IMPCO Air Coolers, Mexico, founded by the inventor of evaporative air coolers. The company has a rich tradition dating back to 1939. Our subsidiary in Mexico is a fully vertically integrated manufacturing facility. We make air coolers in-house there. When we had bought the company, it had one-third of the margins of what we had in India. But today, with constant efforts, the margins for air coolers at our Mexico subsidiary are as good as in India.
With this, how do you see your position in the global market?Symphony’s enormous success in the global air coolers market has primarily been due to its focus on innovation and R&D activities ever since its inception in 1988. The R&D Centre of Symphony is located in the lush green, serene surrounding of Thol, 25 kms from Ahmedabad. R&D consists of a design department with necessary software and design tools, prototype section for making the models of the products, world-class validation laboratory to validate each and every innovation.
One of the key drivers for Symphony’s growth has been its focus on innovation and offering high quality products. Recently, the Ministry of Science and Technology, Government of India accorded the certificate of recognition to Symphony’s in-house R&D centre. Some of our innovations have been water distribution channel, durability, odourless cooling medium so as to get best cooling performance, high capacity submersible pump, remote operated air coolers, aerodynamic profile and a balanced fan for high air flow and less noise. We will continue to introduce more and more innovative products in the future too.
Symphony air coolers have the highest air blast, air delivery and cooling efficiency. They consume minimal electricity and help conserve energy. Its products are eco-friendly as these are energy efficient and minimise the impact of greenhouse gas emissions. We have acquired global certification like CE (Europe), ETL (USA), GS (Germany), NOM (Mexico), SASO (Saudi Arabia), SONCAP (Nigeria), PCT (Russia), etc.
Tell us about your future expansion plans.In 2008, we acquired IMPCO in Mexico, which is the pioneer in evaporative air coolers. This acquisition has helped Symphony to carve a niche in international market. Currently, we are focusing on manufacturing world-class air coolers from this facility too. However, in future, if something comes out worth acquiring, we are always open for acquisition.

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