The Hindu Business Line : Symphony to focus on geysers, air-coolers

WITH the mercury rising, air-cooler players are gearing up to set their cash registers ringing. Armed with a slew of launches and a fresh media campaign, one of the major players in the branded coolers segment Symphony Comfort Systems Ltd (SCSL) is targeting to close the current year with a 50 per cent increase in turnover.

"Looking at the market trend, we expect to close the current fiscal (which ends in June for the company) with a turnover of Rs 75 crore," the Chairman and Managing Director of Symphony, Mr Achal Bakeri, said.

Elaborating on the consolidation and restructuring exercise undertaken by the company during the last few years, he told Business Line that "we now want to focus only on two product categories: geysers and air-coolers."

The lukewarm market response to certain products such as water purifiers, air-conditioners and washing machines resulted in the company phasing out these products. The company also exited its domestic flourmill business.

It is now charged up to strengthen its existing market share of about 55 per cent in the branded air-cooler segment along with sprucing up its distribution and after-sales service points.

The company currently has over 150 distributors and about 3,200 dealers. Symphony has set up more than 300 service centres across the country. "We want to increase our penetration in the semi-urban and rural market. At present, we are available in over 700 towns. We propose to double this count," he said.

Commenting on the two new cooler models that the company is set to launch, he said, "A lot of research was done before launching these products. In fact, we have factored in what the consumer wants from his/her cooler."

The company is launching Hi-cool for the urban market, priced at Rs 4,990 with 20-litre tank capacity. The salient feature of this product is that it is tall and slim and would therefore occupy less space and provide cooling at bed height or body level.

The second product targets the semi-urban market and is pitched at the value-for-money sensitive consumer. It is a large plastic cooler with no frills, priced at Rs 6,490.

With these two models, the total number of variants available from the Symphony stable will move up to eight.

On the branded and grey market size, he said the brand segment currently sells three lakh pieces per annum, while the grey market sells 10 lakh pieces per annum. "The last few years have seen the branded segment eating into the unorganised market," Mr Bakeri said.

The branded cooler market is largest in Maharashtra, followed by Andhra Pradesh and Uttar Pradesh. "We sell well in Kerala, Mumbai and Chennai," he said. In Northern India, unbranded coolers sell more.

On whether the squeeze in air-conditioner pricing had impacted the cooler market adversely, he said, "Although the AC may have become cheaper, it still remains an expensive product."

About the company's new television commercials, he said the punch line would be `Rakhe appko andar se thanda.' The advertisement budget for the year is close to Rs 5 crore.

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