yes, the company is in nascent stages with respect to IC. However they are very aggressive in this area as can be seen from below:
In the year 2011-12, in IC range Symphony had about 15 dealers, now number of dealers has increasedto 44 and for 2013-2014, the plan is to have about 120 dealers.
In 2011-12 we do not haveany consultants, but now we have tied up with about 10 large HVAC consultants in the year2012-13.
Symphony did not have any tie up with the contractor in 2011-12. Now Symphony ishaving a tie up with two large national renowned contractors in this space and in 2013-14 the plan is to have about 20 such contractors.
so as can be seen IC dealers from 15 to 120 in 2 years. Already appointed 44.
0 HVAC consultants to 10 in a year.
0 contractors to 20 in 2 years.
Only thing we need to monitor is how they are able to convert these to sales and capturing the market share as they did for residential coolers during the initial years.
When symphony in nascent stage had 3000+ dealers in 2009, they had sales of 124 crores. when the dealers were more than trippled to 10000 by 2012, the sales were 313 crores(though sales got affected because of mild summer for 2012). All stand alone figures. Better product mix and innovations also contributed here. However it’s true the same cannot be expected from IC, but there is anopportunityfor Symphony. I feel it’s like TTK Prestige shifting from the cooker alone to cookware and kitchen appliances market in 2007-08. Similar to V-guard moving from stabilizers to other electrical appliances product and the amount of wealth created.
As per the CEO, the IC market is growing at 25-30%. So if it is true, then we are looking at IC market at 6000 crores in another 4 years. Can symphony garner 4-5% market share by that time is the big question. If so , then it can create wealth from here too.
In the AR they had mentioned “Going ahead, the Companyâs impetus on growing its industrial cooler business globally willincrease the proportion of exports â de-risking it from an excessive dependence on Indian markets.”
It’s true that they had mentioned of 20000 dealers but could reach only 16400. They targetted 500 crs revenue by FY13, which they missed but could achieve this year.
The real trigger would be implementing and walking the talk which can be seen in the coming years.
Also i agree with greyfool on the failure of bluestar to pick up in the HVAC segment. The same holds true to Voltas. The running cost is different here for symphony and that could be the differentiator here.
Nothing much on impco as IMPCO is catching up and have entered a new market in colombia and the management seems confident of it garnering market from other south american nations. It was a bad year as such for FY13 for impco which reported loss and they management seems to be confident of turning around this year.
Window coolers is a big oppurtinity in the medium term than IMPCO for symphony with a huge 1 mn units scattered across unorganized companies.
Disc : Invested.