With Rs 160 Cr revenue in 5 years, air cooler maker Novamax is making hay while the sun shines

As temperatures soar internationally, the demand for reasonably priced air coolers is on the rise. In keeping with Maximise Market Analysis, the marketplace for air coolers is anticipated to succeed in $2.74 billion by 2029 from $1.32 billion in 2022 at a CAGR of 10.9%.  

And, cashing in on this demand in India is Noida-based Novamax. In keeping with Founder Harshit Aggarwal, air cooler firms goal customers from decrease to center earnings group. Novamax serves this demographic by sustaining reasonably priced value factors with out reducing high quality.

Aggarwal asserts that Novamax’s experience lies in desert air coolers, which can be found at costs starting from Rs 11,500 to Rs 16,000. Nevertheless, different variants begin from as little as Rs 5,000. Regardless of established market gamers like Symphony, Crompton, Orient Electrical, and Bajaj Electricals dominating the organised sector, the founder argues that Novamax’s pricing stays aggressive and its merchandise have comparable specs.

Sometimes bigger than private air coolers, desert air coolers use water and air to chill surrounding air. Though power environment friendly, these coolers are noisier than private air coolers.  

Aggarwal says that one of many benefits of the Novamax air coolers is its power effectivity. In comparison with conventional air con items, which will be costly to run and keep, Novamax’s air coolers use much less power, making it a cheap and eco-friendly selection. 

As for the worth distinction between Novamax and its opponents, Aggarwal tells SMBStory, “if a buyer compares the pricing of our merchandise on ecommerce platforms, they are going to discover that they’re much extra reasonably priced. There’s a notable distinction of round Rs 3,000. Regardless of this substantial value benefit, our high quality stays unwavering.”

Aiming for prime spot

Aggarwal launched Novamax in 2019. As of March 2024, the corporate has made a income of Rs 160 crore, promoting near 2 lakh air coolers season-to-season. 

“After we began out in 2019, we bought 20,000 air coolers. The years 2020 and 2021 have been a nightmare for everybody resulting from COVID-19 and despite the fact that we didn’t make a lot progress, our enterprise didn’t regress. From 2022 onwards, our enterprise grew and we began promoting multiple lakh items every season,” Aggarwal mentioned. 

He says that Novamax holds fifth place within the business, and the model’s formidable objective is to say the highest spot inside the subsequent three years.

“What units Novamax aside is our promoting proposition—all analysis, growth, and manufacturing are completed in-house, in comparison with our friends who’re depending on third get together producers,” Aggarwal defined the way it stands out from its opponents. 

From motor to followers, air cooler physique, the whole lot is sourced domestically, apart from the pumps which Aggarwal mentioned is imported. 

Challenges and the best way ahead

Novamax’s guarantee providing in addition to service additionally makes it distinctive, the founder says. The corporate presents guarantee for 2 seasons and has a distribution channel of 150 distributors throughout India together with service centres. 

“We’re one of many few air coolers firms in India who’re giving after-sale companies to clients however the problem is that we’re but to be serviceable on all pin codes. Proper now, the penetration is in greater cities,” Aggarwal says. 

As for challenges, Aggarwal mentions that the air cooler market has a number of unorganised gamers who promote poor high quality merchandise at low value. 

“The competitors from the unorganised sector can also be one of many largest challenges as the worth at which they promote merchandise doesn’t even rely within the complete product costing and that’s due to degraded high quality,” Aggarwal says.

Speaking concerning the future plans, Aggarwal says that the corporate plans to extend serviceability in addition to enter different electrical home equipment classes equivalent to iron and mixer grinder.