![Symphony sees record pre-sales for new air cooler models, expects strong March quarter Symphony sees record pre-sales for new air cooler models, expects strong March quarter](https://oscalenews.com/wp-content/uploads/2024/12/Air-conditioners1.jpg)
“We have launched 17 new models of air coolers, and they have received excellent response and dispatch will begin from next week of December….The current quarter will be subdued because most of the collection is towards new models. However, we will start the March quarter with the bumper collection to be in that month and in that quarter,” said Nrupesh Shah, MD of Corporate Affairs.
Shah said incremental sales from the new models is expected to grow in high double digits, he added.
Symphony continues to maintain a steady market share of over 50%.
The current market capitalisation of the company is ₹9,307.38 crore.
Below is the transcript of the interview.
Q: For the last two or three years, what has been the growth of the coolers market versus air-conditioners (ACs), and how is your market share moving? There just appears to be increasing competition in the segment that you operate in.
A: As can be seen from our April-June 2024 (Q1FY25) performance, as well as from our July-September 2024 (Q2FY25) performance, there has been outstanding growth. In the Q1FY25, on top of off-season sales, we more than doubled our sales on a year-on-year (YoY). So there has been decent traction. The industry is expanding, and our market share remains constant at about 50% or slightly higher than that.
As far as the current quarter is concerned, there is a decent collection from the trade, as per our business practice. Some of the collection is for many new models which we are launching, so that will be built in March quarter. But overall, going is pretty well.
Q: Going is good, but is it led by domestic market growth, or is it the export market? Because we were discussing it last, export markets were under pressure. Have things improved considerably now?
A: Mainly it is laid by the domestic market, and in some of the selected export markets, there is attraction, including Mexico, Brazil and partly China. However, in Australia, as well as in the United States, certainly there are headwinds.
Q: Will exports degrowth in the second half of the current year?
A: There is not a question of degrowth. The commission is generating decent profitability and much ambitious growth. There is no question of degrowth.
Q: What is your market share now?
A: In the domestic market, we continuously command more than 50% market share among organised players, and we lead by far vis-a-vis competitors. Very recently, we have launched 17 new models of air coolers, and they have received excellent response and dispatch that will begin from next week of December, we have received a phenomenal collection of new models.
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At the same time, as announced earlier, we have also launched, path-breaking water heaters. As of now, they have been launched in select markets of South India, mainly in two states, and starting next week, we are launching all India on eCommerce as well as d2c.
Q: You will be selling them in the market from next week. So that means it’s towards the end of October-December 2024 (Q3FY25). What is the TAM that you are addressing via these 17 new launches? How much will it add to your top line in 2024-25 (FY25) itself and at full scale, what would it be in 2025-26 (FY26)?
A: Currently, we are sitting on decent advances towards new models. However, most of them will not be built in the current quarter because production is going to begin and dispatch starting from next week. So the current quarter, to an extent, will be subdued because most of the collection is towards new models. However, we will start the March quarter with the bumper collection to be in that month and in that quarter. As far as incremental sales are concerned, it’s very difficult to quantify but it should be certainly in a high double-digit percentage.
Q: Would these 17 new products be pan-India, or is it dedicated to certain geographies only?
A: No, as far as air coolers are concerned, they are pan-India, across the channels, including general trade, modern trade, eCommerce, as well as direct to consumer, but in phases over the next two months.
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