33rd Annual report

27oC world Symphony Limited Annual Report 2019-20

Contents 2 Corporate Snapshot 14 Chairman’s Statement 20 Symphony: Protecting itself from the pandemic impact 22 Symphony 3.0 42 Corporate Social Responsibility 46 Management Discussion and Analysis 52 Financial Snapshot 54 Board of Directors 56 Board’s Report 91 Business Responsibility Report 101 Corporate Governance Report 125 Consolidated Financial Statements 198 Standalone Financial Statements 266 Statement of Information on Subsidiaries in Form AOC-1 267 Notice for AGM Forward-looking statement making our assumptions. The achievement of results is In this Annual Report we have disclosed forward-looking subject to risks, uncertainties and even inaccurate information to enable investors to comprehend our prospects assumptions. Should known or unknown risks or and take informed investment decisions. This report and uncertainties materialise, or should underlying assumptions other statements - written and oral - that we periodically prove inaccurate, actual results could vary materially from make contain forward-looking statements that set out those anticipated, estimated or projected. Readers should anticipated results based on the management’s plans and bear this in mind. We undertake no obligation to publicly assumptions. We have tried wherever possible to identify update any forward-looking statements, whether as a result such statements by using words such as ‘anticipates’, of new information, future events or otherwise. Due to the ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, global Corona virus outbreak (Covid-19), the company’s and words of similar substance in connection with any operations were affected in the fourth quarter of 2019-20, as discussion of future performance. a result of which the company’s performance of 2019-20 and 2018-19 may not be strictly compatible. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in

Symphony Limited. Not just a cooler product company; a cooling solution company instead. Not just a residential cooler company; a residential- commercial-industrial cooler company instead. Not just focused on select countries; a company present in more than 60 countries instead. Not just an India-driven organisation; a multi-country operation enhancing its global influence instead.

Mission Background Products Our mission drives us to give Symphony Limited entered Symphony addresses every all we can to our customers, the business of cooling cooling need with a product to each other, and to our products a number of range comprising household, Company. decades ago and has commercial and industrial since emerged as the air-coolers, marked by cost- • Design, quality and service world’s largest air-coolers efficiency, affordability and – Always the foremost company. The Company was portability. promoted by Achal Bakeri • Innovation and in 1988. Headquartered in 740 improvement – Always the Ahmedabad the company is endeavor recognised as an innovator Team size, in air-cooling. March 31, 2020 • Customer comfort – Always the inspiration UAE Saudi Arabia 2 | Symphony Limited

Brand Sustainability Global presence Symphony is a respected Symphony’s commitment Symphony products are global brand responding with to energy conservation marketed in more than 60 speed to market dynamics places it at the forefront countries, making it arguably through superior styling, of global environmental the most widely available technologies and features. stewardship. The R&D air-cooling brand in the Symphony products have team works extensively world. These countries been endorsed by industrial with design engineers, air- include Australia , China, giants like General Electric cooling technologists and Mexico, USA, UK, UAE, (US), Lear Corporation (US) consumers the world over Ireland, Mexico, Brazil, Saudi and Walmart (US), facilitating to develop energy-efficient Arabia, Spain and almost all a presence in respected carbon footprint-reducing African and South-East Asian supermarkets like Walmart, products. Symphony has countries. Sears, Metro, Carrefour, invested in state-of-the-art Lowe’s, The Home Depot and R&D facilities operating out others. of India, China, Australia and Mexico, complementing the strengths of each other in the local and global markets. Listing The Company’s equity shares are listed on the National Stock Exchange of India Limited (NSE) and the BSE Limited (BSE). The Company enjoyed a market capitalisation of H5,447.55 Crores as on March 31, 2020. Annual Report 2019-20 | 3

Subsidiaries The Company comprises the following global subsidiaries Mexico China Symphony acquired IMPCO S. de Symphony acquired Guangdong R.L. de C.V. in 2009, facilitating Symphony Keruilai Air Coolers a ready-made market access Co. Ltd. (GSK) in 2016, a to North America and forayed company that had in the past into the industrial cooling space helped frame China’s air- in which the company was cooling quality standards and previously absent. had been awarded ~50 patents for industrial coolers. Australia USA Symphony completed the Bonaire USA LLP (BUSA), acquisition of Climate a subsidiary of Climate Technologies Pty Limited (CT) in Technologies, is now a step- 2018, a leader in the Australian down subsidiary of Symphony. air cooling market owning multi- BUSA produces air coolers and decade brands like Bonaire sells to The Home Depot. and Celair and possessing rich experience in the manufacturing of air coolers and premium ducted gas heaters. Brazil Symphony Climatizadores Ltda (SCL), established as a 100% subsidiary of Symphony India, caters to the Brazilian market. 4 | Symphony Limited

Awards Symphony’s in-house Symphony won twice R&D centre was consecutively the Awards Symphony received accorded the Certificate for “Excellence in recognition of Star of Recognition by the Financial Reporting” by Export House from the Ministry of Science and The Institute of Chartered Government of India. Technology, Government Accountants of India for of India. its annual report of FY 2009-10 as well as for FY 2010-11. Symphony won the Symphony bagged the Symphony bagged coveted Quality Mark Best Innovative Company the prestigious “Best Award in 2014 in the Award in 2015. Presented Annual Report Home Appliances Award for Manufacturing category, edging past Sector” for its annual all major players in the report of FY 2011-12, segment. awarded by the South Asian Federation of Accounts (SAFA). Symphony won awards for Overall and Best SME – Manufacturing in 2015. Annual Report 2019-20 | 5

Our intangible numbers - Standalone Market leadership ~50 Symphony market share (%), 2019-20 Product portfolio 70+ Number of 3 Number of models on categories of offer, 2019-20 presence, 2019-20 Brand investment 240 H Crores, investment 94 H Crores, investment in brand building in in brand building in the ten years ending the three years ending 2019-20 2019-20 18 Revenue (H) from 21 Revenue (H) from every rupee of brand every rupee of brand spending, 2019-20 spending, 2018-19 6 | Symphony Limited

Service backbone Retail touch points, Number of pin-codes ~1,000 more than twice the ~19,100 addressed (out of size of the nearest India’s 155,000 post brand offices) Financial foundation 173 412 0 H Crores, consolidated H Crores, consolidated Net debt-free debt, 2019-20 treasury investments company on the (domestically (March 31, 2020) Standalone as well as Symphony continues on Consolidated basis to remain a zero- debt company. Debt taken in subsidiaries is strategically to generate an interest arbitrage and financial leverage) Annual Report 2019-20 | 7

Before we start... 8 | Symphony Limited

It would be improper to begin a review of the last financial year without a mention of the Novel Corona virus (referred to also as Covid-19). The largest pandemic in the At Symphony, we believe recent history of the world that companies that are has affected most countries in existence to address a through it abruptness, speed specific purpose – in our and impact. case, providing cooling solutions that makes lives The result: a watershed in more convenient - will find the history of humankind. it easier to protect their brand and competitiveness. At Symphony, we were not Besides, there is a greater affected as much by the respect for being debt-light virus during the financial than ever. year under review as much as we were during the The principal message first quarter of the current that we wish to convey to financial year. The spread of our shareholders is that this virus has only reinforced Symphony is securely our conviction that a distinct positioned: a robust brand, strategic clarity is our best strong Balance Sheet, insurance. widening global presence, growing product portfolio An unpredictable and increasingly adjacent to environment puts a premium that one word that defines us on de-risking and managed and excites us. growth. We believe that truly sustainable companies will Cooling. resist a sharp downside when the going is difficult and be quicker off the blocks once conditions revive. Annual Report 2019-20 | 9

Theme overview Our dream: A 27oC world 10 | Symphony Limited

In around 25 years, Symphony delivered more than H5,750 Crores in gross revenue and H1,240 Crores in cumulative profit after tax. This sustained The result was that in outperformance was 2019-20, Symphony generated from just one launched and marketed product category (residential industrial and commercial air-cooler). coolers, manufactured for the first time in India. Over the last decade, Symphony set into motion The company no longer just initiatives to widen its cools residential spaces; operating platform to it is empowered to cool include industrial and virtually all spaces- interior commercial coolers as well. or exterior - anywhere. Annual Report 2019-20 | 11

Theme overview Global warming, human productivity and Symphony 12 | Symphony Limited

Symphony is at the right place at the right time with the right products. The world is becoming At Symphony, we believe increasingly warmer, that by extending from one workplace productivity is at cooling platform to three, a premium and unusually we are not just widening warm weather is being our addressable market; we linked to lower economic expect to make more people output. work better. Researchers who analysed The shop owner might labour-intensive and respond with charm when automated manufacturing engaging with a customer at processes in India found that 6:35 p.m. textile worker productivity declined 4% per degree The shop floor worker might of temperature increase engage in an energised five- beyond 27° Celsius; worker minute meeting. productivity can be enhanced by up to 12% by increasing The software professional thermal comfort at the might concentrate harder workplace (source: IIM- during cross-continental Ahmedabad); a one-degree calls. increase in the ten-day average temperature was Aggregate millions of found to increase the instances like these and probability that a worker the result could be a more would be absent by as much prosperous, cheerful and as 5%; output declined about contented world. 3% for every degree above the average temperature All because of an air-cooler. (across 70,000 plants). Annual Report 2019-20 | 13

Chairman’s statement “Symphony 3.0 is not a company nervous about holding on to market leadership; it continues to be a sectorial disruptor seeking to increase its lead further.” Achal Bakeri, Chairman-Managing Director, reviews the company’s performance rebound of 2019- 20 and indicates how this could be the start of a new beginning 14 | Symphony Limited

1 When we entered the profit after tax went up by financial year under review, 84%. most industry observers seemed inclined to relegate I am proud and pleased Symphony to the past. to communicate that we rebounded without any You could sense their Balance Sheet impact; patronising tone; you could not only was the trough feel their story ending with abbreviated to just a year, ‘Yes, those were good days but we also protected our for Symphony but sadly...’ receivables and working capital cycle, profitability, Symphony sprang a pleasant robust return on capital surprise. employed, Balance Sheet hygiene and liquidity. The company reported a 37% rebound in standalone We lived to win another day. revenues in 2019-20 (first quarter revenue growth was 102% over the corresponding period of 2018-19) while 2 The big message that we not with a defensive ‘Wait wish to communicate is that and watch’ but with an enduring brands rebound; aggressive ‘Let us give the deep managements revive; market our best shot’; when solid fundamentals re- it encountered headwinds assert. in marketing room-cooling products, it extended to a Symphony’s performance commitment that promised must be seen through to cool the world. this prism: the company’s management depth was Symphony 3.0 continues validated in 2019-20; its to be a sectorial disruptor recovery was as vigorous seeking to increase its lead as its brief downtrend; it further. responded to the decline Annual Report 2019-20 | 15

3 We When we started the We induced fence-sitters manufactured financial year under review, to reach for their electronic industrial and the principal question was wallets. We encouraged air- commercial how – and when - we would cooler consumers to trust coolers for the revive our Indian operations. craftsmen (us), specialists first time in (us) and the obsessive (us India; we We had options: we could again). launched an have told our primary unprecedented customers (dealers and The result was that even the 21 models distributors) that we would canny who seek the fleeting across formats hold out in a defensive arbitrage in every transaction operation until an unusually – ‘That shop 6 kms away has 16 | Symphony Limited hot summer revived priced the same product consumer sentiment; we H200 lower’ – returned to tell could have said that we our dealer ‘Achchha baba, would launch an advertising show us that Symphony you campaign to ‘push’ products showed us an hour ago.’ and discount our premium products along the way. There are a number of ways we took our focus ahead. At Symphony, we turned We manufactured industrial to something more and commercial coolers for fundamental: our knowledge the first time in India; we of how to create better air- launched an unprecedented coolers, our experience of 21 models across formats; which product would work at we excited our trade partners what time or in which market with the news that we were and our insight on how offering them a larger consumers would respond variety - products that will if the mercury shot past 40 be available for them to go degrees celsius. out and sell; we reinforced our recall as a company Our inch-wide mile-deep that creates platforms as product focus (also described opposed to those that merely as the ability to dream manufacture products; we ‘air-coolers’ when others deepened our positioning see themselves running as holistic space cooling around trees wearing white specialists; we launched shoes and singing songs products that carved away a to their beloved) helped sizable share of their price excite consumers better. and space segments.

We fought for the day and sum of the standalone value We invested in created markets for the of their parts. cutting-edge future. The returns were technologies evident in our portfolio, This then is how we would like SAP and numbers and morale. like to describe the financial data analytics. year 2019-20 in an analogy We returned energised. We that would touch a chord Annual Report 2019-20 | 17 emerged nimbler. We proved with everyone: we have hungrier. scored a double century and instead of calling for a fresh For nearly a quarter of towel or refreshing drink a century, Symphony from the pavilion, we have grew its business on the asked the umpire for a fresh basis of one revenue guard. stream; starting 2019-20, we have three engines Sending out a signal that as firing simultaneously. At far as we are concerned, this Symphony, we are confident represents the start of a new that their cumulative value innings. will be far in excess of the 4 When Symphony announced the range of products we Version 3.0 of its products manufactured in India from a couple of years ago, the just residential cooling residential coolers market machines to industrial in India had tanked and a and commercial cooling number of stakeholders solutions as well. wondered whether we had erred in making this We worked on widening our overarching announcement. trade network and deepening our relationships. In our last Annual Report, we had outlined the initiatives We invested in cutting-edge through which we planned technologies like SAP and to deepen our business data analytics. commitment in this new phase. We prepared ourselves to respond to markets with a We resolved to deepen combination of volume and our focus on evaporative value. air cooling technology; we decided to extend the

We deepened brand We announced the investments to strengthen intention to grow our global consumer pull. subsidiaries. We strategised to permute We achieved all this in and combine technologies the space of a year and to retain our position as a the result is that in 3.0, benchmark company that Symphony is a global competitors checked out first multi-platform temperature (‘Tell me what Symphony control company supported is doing before you present by a growing international your next Product Launch network, global market report’). access and revenues. We have a 5 better visibility on the speed One is more optimistic Besides, India will earn with which we about Symphony today than more, aspire more, spend expect to turn possibly at any time in the more. the operations company’s existence. of our Rising temperatures are Australian Let us start with our irreversible. subsidiary international subsidiaries. around. We have a better visibility As the market grows on the speed with which larger, the proportion of we expect to turn the those buying unbranded operations of our Australian air-coolers will decline as subsidiary around. We a percentage of all coolers believe that the closer sold in India. integration of our other international subsidiaries – The market for coolers China and Mexico – should will progressively reduce translate into a more potent its dependence on the development of products harshness of the summer on the one hand and and become increasingly integration into large retail influenced by other marketplaces on the other. considerations such as aesthetics and affluence (‘We bought it because we wanted our home to also be as comfortable across the 18 | Symphony Limited

seasons like any affluent we are able to catalyze its We have a home.’) recovery (primary objective); larger number when market demand of trade The air-cooler represents eventually does come back, partners the higher end of a family’s we are best-placed to carve engaged with us consumption hierarchy away a disproportionately for five years or because it graduates an larger share (secondary more than entire family towards an spin-off). anyone selling exclusive experience. air-coolers in We have a larger number of India We believe that Symphony is trade partners engaged with best positioned to capitalise us for five years or more than on this perception. anyone selling air-coolers in India, strengthening our We possess the largest network’s ability to act as portfolio and the youngest guides whenever anyone (more than 31% of the seeks our advice on the best portfolio being less than cooling solution. two years old), the widest distribution network, the We continue to enjoy the most effective multi-country highest Share of Voice at research team, the strongest 51%; eight of ten consumers Balance Sheet and a larger said ‘Symphony Hi Cool brand investment across the dikhaiyyega’ when they went last decade compared to all to buy an air-cooler. our competitors combined. As the market for branded We possess possibly the air-coolers climbs from a richest experience of market bend into a diagonal linearity cycles; when markets on the J curve, Symphony 3.0 weaken (as they do every will be equipped not just to few years), Symphony is protect its market share but more likely to respond also to grow it. with ‘How can we excite this nervous market with We’ve only just begun. different coolers?’ as opposed to a panic-induced With warmth ‘We are shutting down all (of the other kind) investments until the market recovers’. Achal Bakeri Chairman The result is that by seeding the market with differentiated products Annual Report 2019-20 | 19

Symphony: Protecting itself from the pandemic impact The big question that we are being asked is ‘How will Symphony weather the Covid-19 pandemic?’ At a time when consumer At Symphony, our priority will sentiment has weakened, be to protect the wellbeing of incomes are likely to be our stakeholders, encourage lower, lockdowns are still in consumers to buy, maximise force and social distancing is sales and moderate costs. affecting human movement, We are competently placed the company’s performance for to protect the integrity of our 2020-21 is likely to be affected. Balance Sheet in what appears to be the most economically Given the uncertainty of the challenging year in decades. prevailing environment, it would be difficult hazarding At Symphony, it would have a guess on when consumer been defeating to see the crisis buying – residential, as insurmountable with little commercial, or industrial - will role for a company like ours. return and when the trade On the contrary, we perceive environment will normalise. the crisis as an opportunity 20 | Symphony Limited

As an opportunity-seeking organisation, Symphony has embarked on a number of projects in the last few months with the objective to strengthen its competitiveness. to do business in a different remain profitable even on a Five, a number of residential way. The result is that our lower revenue base. and industrial customers company has utilised the last prefer air-coolers over few months to look within, Two, the complementarity air-conditioners on account seek better ways of doing of the global geographies of of the intake of fresh air things, question every practice the company’s presence has unlike air-conditioners that and reinvent every paradigm moderated its once-excessive only recirculate stale air. with the objective to emerge dependence on India. The Capitalising on this, the stronger when the world result is that the company company ran a summer normalises. generated revenues in the first campaign called ‘Khol do quarter of the current financial khidki, chalao Symphony’. A number of elements of the year from countries where the Symphony business model pandemic impact then was not As an opportunity-seeking will empower the company as severe as India. organisation, Symphony to survive the downturn with has embarked on a among the lowest relative Three, the company had number of projects in the Balance Sheet impairment in H649 Crores net worth its last few months with the its sector. books as on March 31, 2020 objective to strengthen its and was net-debt free on a competitiveness. We believe One, the company’s has been consolidated basis, making that the cumulative impact of a variable cost business model it easier to see through the these projects will strengthen by the virtue of a completely slowdown. our brand and business going outsourcing-driven approach; forward. the proportion of the quantum Four, we are engaged in a of gross block in the total business that enhances home In view of these initiatives, employed capital is low; the comfort. At a time when most we expect to remain the last aggregate employee cost as people are ‘locked’ into their person standing within our a percentage of revenues is homes, they would be more sector through the slowdown also reasonably low. The result inclined to enhance their and among the first to be off of this austerity is that the comfort through the purchase the block when conditions company has a low ‘burn’ rate of home coolers and of revive. and is adequately equipped to heaters as in the case of our business in Australia. Annual Report 2019-20 | 21

Version 3.0 22 | Symphony Limited

In our earlier annual reports, we highlighted the coming of Symphony 3.0. It is time to refresh that memory. At our company we are not We are not just seeing just seeing things for what subsidiaries as silos but they are but for what they extending their competence can be. into other subsidiaries. We are not just creating We are not just seeing what We are not just product categories but tangible financials each deepening the creating platforms. subsidiary reports but the entrepreneurial intangible value it brings to strain within our We are not just widening our the organisation’s table. parent company footprint but deepening our but also synergies. We are not just seeing extending it subsidiary capabilities across We are not just focusing on ‘locked’ within their organisational owning market share but in structures but as constituents. enhancing category share. homogeneous across people, structures, departments and We are not just focusing boundaries. on the ‘residential’ but also developing the ‘industrial’ We are not just sitting pretty and ‘commercial’ segments. with our lead in the Indian market but constantly We are not just getting working on how we may each subsidiary to focus on enhance it. standalone performance but enhancing the organisational We are not just focusing on whole. the high market share in the second most populous We are not just deepening market but on how we may the entrepreneurial strain sell our products in more within our parent company countries. but also extending it across organisational constituents. We are not just gloating on what has been achieved We are not just reinforcing but fretting with a sense of subsidiary strengths but also urgency on what is still left to enhancing the consolidated be done. group competence. Annual Report 2019-20 | 23

Globalising At Symphony, a unique fusion is emerging. At Symphony, we are of the parent company What excites us is that for long helping to combine the (Symphony). a number of these capabilities research intensity of Keruilai had been locked into their (Chinese subsidiary) with We believe that this new respective geographies, the market access provided avatar - the aggregate value resulting in a knowledge silo. by our Australian subsidiary of India, China, Mexico and The competence created in (Climate Technologies) Australia - is unprecedented Mexico, for instance, was with the industrial cooler in the world of air-coolers. available to be implemented insights of our Mexican Rarely (probably never) has only in that country until constituent (IMPCO) with the any single company brought Symphony acquired IMPCO. entrepreneurial grounding to the global market such a Following the Symphony consolidated competence. The global fusion at Symphony Symphony India Market Entrepreneurial Asset lightness Value- building engineering GSK, China Wide insight Market- Wide products into the Chinese building portfolio Deep research component eco- competence system 24 | Symphony Limited

effect, these incestuous with which to describe this scored; it is the team that competencies and capabilities exciting Symphony reality: wins. are being released and one person creates a move, combined. Finally. passes to another who carries The reality is no different in the ball some distance, then a globalising Symphony. One We recognise that the vast slips it away to a third who has subsidiary creates a move, research insight that lies with reached from where he needs another grows it and a third Keruilai could be productised to score. Different people may scores. within India and relayed to play a part in the goal being Climate Technologies for onward customisation. We have a convenient analogy IMPCO, Mexico Manufacturing Market access presence in in IMPCO enabling Rich experience large exports from in industrial North America Symphony India. coolers Climate Technologies, Australia Wide and deep Market Popular Market Australian knowledge proprietary access in distribution Australia and network brand USA enabling large exports from Symphony India. Annual Report 2019-20 | 25

Rise Australia Symphony acquired Climate Technologies (Australia) based on assumptions of attractive growth and profit delivery in 2018. Climate Technologies eliminated probable errors upstream. This is what we (headquartered in Adelaide) (and related costs) and built discovered: the more one brought impressive portfolio on existing strengths. peeled the layers the bigger credentials to Symphony’s was the opportunity. Besides, table: evaporative air coolers, However, some performance the new Climate Technologies ducted gas heaters and assumptions that had been responded to market other cooling products. The projected at the time of the complexity with strategic acquired company possessed acquisition did not transpire simplicity: the subsidiary a manufacturing facility in on account of changes in questioned every practice on Adelaide (South Australia) market conditions. how business could be done. and assembly operations in Las Vegas (USA) at the Symphony could have The result is that the time of acquisition. Besides, responded in two ways: Australian subsidiary has Climate Technologies (pre- waited for the market to evolve already embarked on a acquisition) generated ~92% in line with expectations or journey to reduce the cost of its revenues from Australia moved to that part of the of doing business (attacking and ~8% from USA. market over which Climate overheads), moderate the cost Technologies could exercise of goods sold and invest in In the normal course of things, control. building blocks for scalable Symphony would have taken growth. It reshuffled and a number of years to build We responded with rationalised the operating similar competitiveness. ‘Symphonomics’, marked team to emerge leaner, Buying into Climate by our trademarked outsourced its after-sales Technologies proved quicker, entrepreneurial spirit, ability service, reduced the number to think lateral and row 26 | Symphony Limited

of SKUs in play to moderate semi-knocked down condition. We believe that inventory and invested in SAP The digital marketing for by moderating for informed cost moderation. Australian operations has costs – overheads been outsourced at a lower and product – The result is that a cost cost to India. Climate visibility is now emerging: a Technologies is projected decline in the annual We believe that by moderating fast arriving at a cost of doing business by costs – overheads and product sweet spot from 15% from peak and another – Climate Technologies is where the 15% from this point with the fast arriving at a sweet spot subsidiary is objective to, moderate the from where the subsidiary is expected to projected break-even point of expected to report vigorous report vigorous the Australian subsidiary. growth in revenues and growth in profitability. revenues and From a time when each profitability. business ran like an independent strategic business unit that pretty much generated its own components, there is now an active outsourcing of sub-assemblies by Climate Technologies to lower the cost. Improved product design has helped reduce product weight and freight cost. Product suppliers in China ship directly to Climate Technologies’ trade partners in Australia in a Annual Report 2019-20 | 27

Perspective “We believe that our initiatives will position Climate Technologies as a disruptor, translating into sectoral outperformance in Australia and building into robust suppliers into US.” A conversation with Tim O’Leary, CEO, Climate Technologies Q Was the management of Climate Technologies pleased with its performance during the year under review? The management was than the previous year (9 for the company’s products, pleased as the performance months as the company was brands and price-value improved over the one acquired on proposition. reported in 2018-19. July 1, 2018, annualised) Revenues were 5% higher which indicates a traction Q What were some of the factors that helped catalyse the subsidiary’s performance? There were a number of offerings (Bonaire brand), The Home Depot. The initiatives that began to introduced Symphony complement of these bear positive results: the portable air-coolers timed initiatives translated into an subsidiary launched new with the Australian summer improved performance for products, strengthened and strengthened its the business during the year refrigerated air conditioning sales into US, especially under review. 28 | Symphony Limited

Q What was the other significant business-strengthening initiative for the Australian subsidiary? The most decisive initiative divested. The business of Climate Technologies at Climate Technologies Climate Technologies will is now exposed to a was that the business be increasingly asset-light, stronger supply chain, began its evolution from marked by a ‘box in and resulting in economies of the manufacturing model box out’ approach that procurement; the subsidiary to the assembly model moderates the cost of goods now possesses access to during the year under sold on the one hand and the financial muscle of review. The business the cost of doing business Symphony to be able to possesses several large on the other. grow the business (earlier a metal working machines , restraint). which will be progressively Q What is Climate Technologies’ road map from this point onwards? The business has drawn of sales from Australia to initiatives should translate out a number of initiatives: The Home Depot in the US, into an attractive increase in strengthen the Bonaire launch new evaporative revenues in 2020-21. brand of refrigerated air products, strengthen value- coolers, position its split engineering initiatives in We believe that a number of air-conditioners at the the competitive ducting, our initiatives will position price points addressing heating and commercial Climate Technologies as a the mass market, leverage cooler segments, disruptor, translating into the competitiveness restructure with the sectoral outperformance in of the world’s largest objective to become Australia and building into portable air-coolers brand leaner and make strategic robust suppliers into US. (Symphony), deepen its managerial appointments. presence in Australia, We are optimistic that route a larger quantum a complement of these Annual Report 2019-20 | 29

The power of cross- pollination When we acquired operations in other countries, we paid not on the basis of what was, but bought on the basis of what could be. Symphony acquired what IMPCO did was to have in the books of Symphony companies more for what they created what in field sport standalone plus IMPCO) and could achieve from a multi- is referred to as a game- recovered the acquisition cost geographic cross-subsidiary maker; it helped in creating a number of times over. perspective, the full effects of a field dynamic that made which can be seen only in our it possible for Symphony’s Similarly, when we acquired consolidated performance. Indian operations to carve out Keruilai, most analysts a better market access and saw only the accumulated For instance, our acquisition even create a new platform loss on the books and the of IMPCO, was not based (industrial coolers). corresponding production on narrow short-term capacity we were acquiring considerations that looked The result is evident in the to conclude that the kind of only at the profits reported consolidated numbers: financial ammunition required by IMPCO. Some external an operation that was to scale that operation in a observers believed that acquired for US$ 650,000 large Chinese market would this acquisition was a silo in 2009 had generated US$ affect the parent’s cash that would never be able to 134 million in sales in last flow. What Symphony kick- contribute meaningfully to the eleven years accounted for started was a two-tiered consolidated Balance Sheet. half of Symphony’s exports, programme: revenue- Over the years, IMPCO may or generated more than enhancing and cost reduction may not have scored directly; H111 Crores in PAT (accounted that helped moderate 30 | Symphony Limited

Keruilai’s accumulated loss value-engineering The result is that year-on-year and facilitated credentials. Symphony this ferment is not knowledge sharing to questioned every legacy just showing in the Symphony’s operations in practice, relationship, transition being India, Australia and Mexico lease and contract of achieved in for these to report gains Climate Technologies with Climate in their geographies. More the objective to make its Technologies; it is importantly, the Chinese acquisition profitable. likely to show in acquisition drew Symphony more into the design and For instance, Climate permutations development of commercial Technologies would earlier between air-coolers. Had it not outsource and sell York Symphony’s been for this acquisition, products; the subsidiary is operating Symphony would have now sourcing directly from constituents invested years of research, China at a lower cost and which now transpired almost increased margins, the seamlessly; the acquisition full impact of which will be also shifted the company’s reflected from the summer air-cooler research to China of 2020. Besides, Climate and enhanced its access to Technologies, which had some of the most competitive never manufactured portable component vendors in that air-cooling products in the geography. past, now accessed this product from Symphony. Similarly, the acquisition Symphony helped Climate of Climate Technologies Technologies move to opened up a new market a more market-driven for Symphony in Australia: approach, liquidate slow the company had been moving products, focus on attempting to enter that value-addition, implement continent for years; a SAP, rationalise the product sustained initiative would portfolio, focus on product have entailed time, cost winners and shrink the and people resources mind-to-market cycle. with no guarantee of success. The acquisition The result is that this provided Symphony with a ferment is not just manufacturing base in US showing in the transition in addition to access to the being achieved in Climate Australian and USA markets Technologies; it is likely to for residential coolers show in more permutations manufactured in India and between Symphony’s China. operating constituents, deepening lateral- Besides, Climate ness, effectiveness and Technologies enjoys access sustainability. to Symphony’s established Annual Report 2019-20 | 31

Climate Technologies is leading Symphony to where it has never been The coming together of the two can widen the product properties, sell wider and deeper. For nearly a decade, Climate one of the largest branded Technologies, located in retail chains in USA (revenues Australia, enjoyed an unusual of US$ 110.2 billion and profit marketing relationship: the after tax of US$ 11.2 billion company manufactured air- in 2019, supported by a cooler products for onward nationwide franchise 2,291 placement in The Home Depot, across outlets). 32 | Symphony Limited

At Symphony we perceive this company expects to market We believe we are relationship is like a ‘pipeline’ these coolers to Lowes and at the inflection stretching from Climate Amazon as well from 2020 point from where Technologies to The Home onwards. The Home Depot US$ 6 million of Depot and from each The was buying commercial US revenues Home Depot retail outlet to coolers from another derived by Climate millions of customers across supplier but is now turning Technologies could USA. This relationship is at to the widened bandwidth become a the cusp of graduating to the of Climate Technologies US$ 30 million next level. for product innovation and business in less a superior price-value than five years. Rooftop coolers are already proposition. being sold in US but what Climate Technologies is The coming together of offering is a superior and Symphony and Climate distinctive non-metal product Technologies can widen with a lifetime warranty the product portfolio (non- (against rust and corrosion). portable coolers), sell wider Besides, this will be the and deeper - in Australia and first time that IMPCO will USA. market a plastic body rooftop evaporative cooler and We believe we are at the first time that Climate the inflection point from Technologies will market a where US$ 6 million of US product in Mexico. Climate revenues derived by Climate Technologies received Technologies could become a large order of rooftop a US$ 30 million business in evaporative air coolers from less than five years. The Home Depot that will be implemented in 2020; the That’s our big picture. Annual Report 2019-20 | 33

Indian operations: Residential coolers When we entered 2019-20, the industry waited to see how our residential segment would perform. 1 This is the moment that As summer temperatures after, competitors dispatched makes or breaks. Either you climbed, we had two surprised their product development walk in to bat feeling the audiences: consumers who teams to buy our product, weight of every single reading encountered a wider choice unscrew it, copy the design into how you are holding and our primary customers feature by feature and launch your bat, how you have tied (trade partners) who had a their own product versions. your laces and how you have larger throughput to market. Diet held its own until rolled your sleeves or you The result is that when there came a time when we walk in with a soft firm voice category demand rebounded, replaced our Diet with another whispering in your head our offtake grew 100% in the winner. ‘Never forget how you hit that first quarter of 2019-20; we six in the last over to seal the finished the financial year Some nine years after World Cup.’ with 37 % growth; we had Diet was called back to recovered our momentum. the dressing room, we We just said, ‘What a lovely did something downright time to go out and show our The financial growth reported courageous; now that our customers the fascinatingly by Symphony represented only Diet clones had fatigued of wondrous coolers they can the veneer of the story; how the design, we called our take home to their families.’ we went about regaining our erstwhile model back into share and respect was more play. When we re-launched We could have launched heart-warming. Diet the first question our a couple of residential upcountry trade partners coolers; we launched an Take the launch of Diet 3D for asked was ‘Dubaara?’ We unprecedented 12 residential instance. The Diet series was said yes and no; a number coolers. first launched in 2009 but soon 34 | Symphony Limited

of features of the original who called a senior executive The product design had been retained; for and hollered ‘Kya ho raha success exceeded the first time we introduced hai? Do baar operating plan expectations; the a unique three-side cooling ko revise karna pada!’, then company in a slim tower type cooler sized up what he had said – experienced stock (the convention was one- and added ‘Thank God.’ outs; the only side cooling), changed the person who colour (black and white), The launches that warmed registered a mild provided an automatic (oops, another pun) us were complaint was our pop-up touchscreen control two price-point coolers. planning executive panel and emphasised our Conventionally, Symphony who called a uniqueness by branding our had consistently addressed senior executive product Diet 3D. The product the premium end of the and hollered ‘Kya excited the market; we were market in excess of ho raha hai? Do inundated with indents and H12,000 per cooler. baar operating finally, just so that we could During the last financial plan ko revise accelerate deliveries, some year, Symphony did the karna pada!’ dealers began to call and unprecedented. The company request ‘3D moklaavsho?’ launched two price-point coolers a shade below Similarly Sumo had been H10,000 each. What was so launched for the first time unusual about Symphony in 2000. The product was launching a cooler for brought back from the cooler Rupees nine thousand- (bad pun) to address the mid- something? Because this priced desert cooler market. was the category in which The styling was altered; Symphony never cared to robustness was enhanced. venture. Because there was apprehension that these The product success launches would compromise exceeded expectations; the the branding of a premium company experienced stock coolers company like ours. outs; the only person who Because this was the registered a mild complaint equivalent of a propah gent was our planning executive Annual Report 2019-20 | 35

When the getting drawn into a street market to around 50%. At market for air- brawl. Because this was the end of the day after the coolers de-grew a bit like a value-focused dust of battle had settled, sharply in 2018, company selecting to play the awestruck whisper was the whisper that the volume game. ‘Symphony Symphony hain. began to gain Kuchh bhi kar sakta hain.’ currency was This then is the new that the age of Symphony. Well aware Our body language of old was the box was of what its brand stands back. It was yesterday once over. for. Nimble enough to see more. opportunities. Prudent enough to make selective exceptions. Competent enough to capitalise. The result is that Symphony’s price-point coolers plugged the available opportunity and doubled market share of the mid-sized desert cooler 2 When the market for air- multi-decade air-cooler bull coolers de-grew sharply in market – fleeting to the point 2018, the whisper that began that even as India’s economic to gain currency was that the slowdown deepened in age of the box was over. 2019-20 and people spent less on most things, they At Symphony, we kept faith. spent more on air-coolers instead. As it turned out, the market de-growth of 2018 proved to Amazing. be a fleeting correction in a 36 | Symphony Limited

Symphony’s launches 2013-14 3 2014-15 2015-16 2019-20 7 12 21 2016-17 2017-18 9 19 2018-19 3 Annual Report 2019-20 | 37

Manufacturing industrial and commercial coolers for the first time in India At Symphony, 2019-20 represented an inflection point for our industrial and commercial coolers business. 1 During the year under review, manufacture of these products seriousness. Besides, local the company manufactured in India for the first time. manufacture enhanced the industrial and commercial confidence that spares and coolers for the first time in During the preceding few components would now be India. Even as the products years, successful installations available ‘within hours’ as had been marketed for by Symphony using imported opposed to ‘within weeks’. the preceding six years by hardware had helped seed Symphony, they would usually product demand for industrial Symphony brought to this be assembled in Mexico and coolers within the country. business a distinctive China to be shipped to India; The Indian manufacture advantage: a core cooling during the last financial year, of this product sent out a competence, the ability to the company switched to the message to trade partners extend a concept to a product of the company’s long-term to a solution, an existing 38 | Symphony Limited

Symphony brand that opened the conventional uni- At Symphony, we doors to customers, a listed directional); this capability see ourselves at status, credible Balance enhanced the trade partner’s the bottom-end of Sheet, access to experienced flexibility to address a a multi-year engineers and a pioneering wide range of preferences. J-curve in this presence in a largely Besides, when a marble plant sector for a uncharted territory. commissioned our industrial number of cooling unit, it discovered – to reasons This advantage was its pleasant surprise – that complemented by a critical it did not need an exhaust mass of launches that system as the machine and resulted in a presentable the natural openings were products portfolio of the robust enough. company in the very first year: 3 models for industrial At Symphony, we see coolers and 6 models for ourselves at the bottom- commercial coolers during end of a multi-year J-curve the year under review, in this sector for a number sending out a distinctive of reasons: we possess an signal to the eco-system that active product development Symphony wasn’t just ‘testing pipeline, our mind-to-market the space’; it was ‘here to cycle is possibly the lowest grow the market’. in the sector, we possess the financial resources and The initial experiences have management bandwidth to been more than encouraging: grow this business before one of Symphony’s most it can break even and we successful innovations possess the competence to comprised the Universal extend from a time-tested Air Cooler delivering multi- linear growth approach to directional wind draft (over lateral expansion. Annual Report 2019-20 | 39

2 The commercial We would like to begin this populous market. There cooler segment section with an expression are millions of commercial is probably the of gratitude: to all those establishments in a tropical last untapped people who stand around country like India that live cooler segment the large pedestal rotary fan through at least five months in the world’s in marriage halls with the of the year in temperatures second most intention monopolise the higher than 35 degrees populous breeze, to all those people centigrade with nothing more market. who set up noisy blowers than a ceiling fan for refuge. in party lawns with the objective to provide guests Symphony launched its a tolerable atmosphere and maiden India-manufactured to all those people who shift product in September 2019. marriages from the summer During the financial year to the winter only because under review, the company ‘We can’t have our guests launched six manufactured sweating in their suits’. models (as opposed to importing equivalents from They inspired the China to seed the market); manufacture of commercial a presentable critical mass coolers in India in 2019-20. set the company ahead Symphony validated the of intending competition; conviction that the time had the company imported the come to treat commercial heart of the product from interiors as a separate and its subsidiary in China that specialised standalone moderated time and cost. segment. The company’s ‘Made in The commercial cooler India’ models addressed segment is probably the last a long-standing need of untapped cooler segment low cost, high functionality in the world’s second most and aesthetic utility. These 40 | Symphony Limited

models, when used in generally consumed by varied between four and restaurants, helped moderate an air-conditioner; when ten months based on usage air-cooling cost down to installed in retail stores, a intensity, the products were H5 per hour, strengthening single commercial unit cooled pre-sold before they could be competitiveness without interiors by nearly 10 degrees placed. compromising comfort; when centigrade across 2,500 sq ft. used in classrooms, the models moderated cooling As the word began to get cost to 10% of the electricity around that product payback How Symphony is making a difference for buyers of its industrial and commercial coolers “We installed Symphony’s “It is nearly two years since we installed industrial air-coolers at our 23 units of 45,000 CFM and 12 units of marble factory; our marble- 25,000 CFM commercial coolers. We manufacturing unit comprises have not had any major break-down; the central air-conditioning but maintenance cost has been minimal. the space where the products Since ours is a factory producing ready- are displayed is open-shaded to-eat products, we have to maintain where the AC system would hygiene with the workers always wearing not work. We believe that the gloves, hairnets and masks, which can industrial coolers will enhance lead to discomfort. Since we had no the quality of decision- provision for ducting it was not possible making especially during the to install air-conditioners. We turned summer. So we believe that to Symphony’s commercial air-coolers the industrial cooler is not which provide optimum temperature (23- just a convenience asset but a 30oC) which has enhanced worker morale customer’s revenue driver.” – and our revenues.” Jitendra Singh, Santosh Nair, RK Marbles Pvt. Ltd., Chokhi Dhani Foods Pvt. Ltd., Kishangarh Jaipur Annual Report 2019-20 | 41

Corporate Social Responsibility How Symphony transformed a waste dump into a unique urban forest Since the beginning of 2019, Symphony was working on transforming an open space across its office into a public garden. The transformation was completed during the last financial year and the facility opened to the public from January 2020. This initiative is an instance of our corporate social responsibility that will enrich the lives of thousands for decades. This conversation with the architects and designers of the garden provides an insight into the detail that went into this facility. Q What was the philosophy behind Symphony’s ‘urban forest’ where you were involved? We researched public residential neighbourhoods new nerve city centre of places under the aegis of but an oasis of sorts for Ahmedabad with relatively the Ahmedabad Municipal office-goers - to take a stroll higher pollution levels, we Corporation and realised in during lunchtime, for an positioned the garden like a that most curated parks artist to find inspiration in, for lung for the neighbourhood – comprised the usual amenities a student to seek knowledge an urban forest as our client (congregation lawn, walkways, from and to other interested Achal Bakeri desired. seating areas, children’s visitors. This dictated the play area etc.) addressing overall design of the facility: residential neighbourhoods. not the usual manicured We set about designing a lawn but a complete green public place that would not cover; since the adjoining be the usual hangout zone for SG Highway represents the 42 | Symphony Limited

Q What was the inspiration for the design? We did not refer directly to national parks that are literally parks in Singapore and also any other garden of the kind jungles; the unplanned aura of places in Madhya Pradesh, in India or abroad; in fact, I these places was there at the Southern India and Gujarat, am not aware of something back of my mind. Since I had these experiences were like this in any other part of been exposed to sanctuaries available for reference. the country. We drew from in Sri Lanka, tropical national Q What natural investments were made in this urban forest? We sourced locally available was conceptualised as a sustainable. We will not deploy species (no imports from space that nurtures local chemical fertilisers, pesticides outside the State or country), endangered species that could or manure. Our urban forest moderating the carbon have become extinct. We had did not use a single bag of footprint from the design one rare species (Salvadora cement as the walkways were stage. Some saplings were or Piludi) growing on the created by compacting the rare and we had to wait a abandoned site and I shudder earth and using construction few months to be able to to think that if that plot had bricks. If we had created access them. We felt that the been commercialised we may a conventional garden the use of indigenous species have lost a rare specimen. maintenance cost would have would make the urban been twice that incurred for forest sustainable without This urban forest will require the urban forest (which will ongoing maintenance. More minimal maintenance for cease to have any recurring importantly, the urban forest the first three years, after cost after 2-3 years). which it should become self- Q How were the values of Symphony reflected in this project? ‘Symphony’ was woven into the breeding ground for a most people have used are the aesthetics. We were symptomatic eco-system – a ‘peaceful’, ‘calm’, ‘refreshing’ inspired by Beethoven’s 5th slice of true nature within and ‘quiet’. The urban forest Symphony and just like the a concrete jungle. The has attracted a vibrant mix of notes of the symphony that visitor feedback has been all types of visitors. merge seamlessly, we created overwhelming. The words that The conversation was conducted with Nidhi Parikh (Principal Landscape Architect, Urbscapes) and Narendra Mangwani (Principal Urban Designer, Urbscapes). Annual Report 2019-20 | 43

Corporate Social Responsibility Scientific name Gujarati name Some rare Anogeissus Dhavado species latifolia planted in Sangati Salvadora Piludi persica 44 | Symphony Limited

Scientific name Gujarati name Scientific name Gujarati name Putranjiva Putranjiva Tecomella Rohido roxburghii undulate Bombax Shemlo/ Symphony Forest Park has been showcased on the ceiba Shemdo/ website of World Landscape Architecture Semado https://worldlandscapearchitect.com/symphony- forest-park-urbscapes/#.X0kj62lN0zR Annual Report 2019-20 | 45

Management Discussion and Analysis Global economic overview France with a gross domestic product (GDP) of US$ 2.94 trillion. India jumped 14 places The growth of the global economy declined to 63 in the 2020 World Bank’s Ease of Doing in 2019, on account of sharp downturn in Business ranking, riding reforms in seven industrial production, weak trade relations areas and a substantial bump-up from the between China and USA, slowdown in demand insolvency law rolled out in 2016. in China and geopolitical tensions. Global economic growth was estimated at 2.9% in (Source: Economic Times, CSO, Economic Survey, IMF) 2019 compared with 3.6% in 2018. Outlook Global economic growth over five years The Indian economy is forecast to de-grow in Year 2015 2016 2017 2018 2019 2020-21, while nearly all major G20 economies are forecast to shrink. Real GDP 3.5 3.4 3.9 3.6 2.9 growth Year Q1 Q2 Q3 Q4 (%) FY20 FY20 FY20 FY20 Source: World Economic Outlook Real GDP 5.2 5.4 4.1 3.1 growth (%) Indian economic overview (Source: Economic Times, CSO, Economic Survey, IMF) India’s growth for FY 2019-20 was estimated at 2.5% from the forecasted 5.3% estimate. The Indian appliances and consumer Manufacturing growth was seen at 2% year electronics industry on year, a 15-year low as against 6.9% growth Despite the sluggish economy and the slow in FY 2019. A sharp deceleration in economic demand from the real estate sector, the growth and surge in inflation weighed on Indian electrical sector grew 10% across the the rupee exchange rate with the Indian first three quarters of 2019-20. The size of rupee becoming one of the worst performers the Indian consumer durables market was among Asian peers marked by a depreciation estimated at US$ 22 billion in 2019. Extensive of nearly 2% since January 2019. Retail rural under-penetration, business friendly inflation climbed to a six-year high of 7.35% in government initiatives, long summer and December 2019. growing aspirations resulted in increased consumption in electrical products through India emerged as the fifth-largest world attractive demand offtake. This consumption economy in 2019, overtaking the UK and 46 | Symphony Limited

Why choose air‑coolers? They are energy-efficient, consume less power, are eco-friendly and can cool specific areas Do not dry the surroundings like ACs Do not use any harmful cooling agent like CFC or HFC Moderate the electricity bill by 80-90% compared to ACs Cost lower than air-conditioners growth is anticipated to drive the sector in the residential market. Industrial cooling to reach US$ 36 billion by 2023. The ACE is slowly gaining importance as companies (Appliances and Consumer Electronics) are seeking to create an amiable working industry was estimated at H76,400 Crores (US$ environment for their shop floor teams. 10.93 billion) in 2019 and projected to reach Although unorganised segment players H3.15 trillion (US$ 48.37 billion) in 2022. continue to dominate the air cooler market, branded coolers are making inroads into (Source: IBEF,Consultancy.in) the segment, helped by factors such as the introduction of GST, which helped reduce the Indian air-coolers market price gap. The Indian air-cooler market has been growing at a CAGR of more than 11% in the (Source: Moneycontrol, The Economic Times) last five years. The size of India’s organised air-cooler market was estimated at around Demand drivers of the Indian air- H2,500 Crores in 2019. Owing to the rise in the coolers market mercury levels, rise in disposable income, growing demand by the middle class and a Rising incomes: The nominal per-capita net comparative price advantage of air coolers national income during 2019-20 was estimated to air conditioners, the sector is projected at H1,35,050, a rise of 6.8% compared to to reach H9,000 Crores by 2021. The air H1,26,406 during 2018-19 cooler market is divided into two segments viz. residential and industrial. Residential Digital penetration: Current active and industrial air cooler markets have been e-commerce penetration in India stands growing with a CAGR of approximately 20% just at 28%, with room for improvement. and 8% respectively in the past four years. The e-commerce sector is expected to grow On account of the low capital expenditure and attractively due to increasing urbanisation low electricity consumption of air coolers, the coupled with rising internet penetration. middle-income group greatly fuelled sales India’s internet user base was at 665 million in 2019, expected to grow to 829 million by 2021. Annual Report 2019-20 | 47

Young population: Approximately 66% of per decade since 1880; however, the average India’s population is below 35 years. The rate of increase since 1981 (0.18°C / 0.32°F) median age of the country is estimated to be has been more than twice this. ~28 years compared to a global average of 30 in 2019, an age bracket that is economically Technological innovations: Technological productive. innovations like smart locks, feather-touch digital control panels, remote control, auto Emerging non-metro markets: The swings, alarms and other niché features are consumption figures in non-metro markets gaining popularity over the technologically like Vishakhapatnam, Bhopal, Vadodara, austere products of the unorganised segment. Chandigarh, etc. have grown rapidly, transforming into new business centres. Low penetration: India’s consumer durables market is underpenetrated compared with Urbanisation: India is arguably the fastest other countries and offers headroom for urbanising country. In FY 2019-20, 35% of growth. Electronic items, which were formerly India’s population was urbanised compared to considered luxury items, are likely to become a 30.8% urban population in 2010. basic necessities. Working population: India’s urban middle- Organised retail: Increased visibility of class workforce (over US$ 11,000 annual products in Tier-II, III and IV cities is attributed income) stands at 27 million or 2% of its to inroads by organised retailers. population with a large headroom for growth. (Source : National Oceanic an Atmospheric Administration, Rural market: The rural population, Climate.gov, Worldometer, Livemint, Goldman Sachs, accounting for 68.86% of India’s population Statistics Times, Economic Times, IBEF) in FY 2019-20, represents a large relatively under-penetrated market for consumer Outlook durables, offering the potential of sustained consumption growth. In 2022, the market size of the air cooler industry in India is forecast at ~H44.2 billion. Air-conditioners versus air-coolers: The The Indian air cooler market is anticipated to price-value proposition, lower energy report sustainable growth due to increased consumption and effectiveness in dry areas rural electrification and increasing disposable make air coolers superior to air-conditioners. incomes. The residential sector is expected to dominate the India air-cooler market owing to Rural infrastructure development: The the large proportion of the population in the impressive development of roads and lower- and middle-income group and housing infrastructure over the last few years has development plans of the government. The enhanced rural incomes. India’s move to industrial and commercial segments are likely connect every village with electricity has to witness a substantial increase in demand helped widen the market for electrical as select industry players introduce cooling appliances. solutions. (Source: Research Market) Global warming: According to the NOAA 2019 Global Climate Summary: the combined land and ocean temperature of the earth has increased at an average rate of 0.07°C (0.13°F) 48 | Symphony Limited