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After witnessing weak domestic sales for two successive summers, air-cooler maker Symphony Limited is upbeat on the export market as it opens new fronts in Brazil, besides the existing strongholds in the US, Mexico and Australia.
The export-focus strategy has insulated the company from the domestic shocks and helped explore new global opportunities..
Symphony’s domestic revenues in the June 2021 quarter were 40 per cent lower than the same quarter in 2019-20. In contrast, export revenues, which had dipped 15 per cent in June 2020, limped back in June 2021 to match the revenues of June 2019.
Overall exports
Of the overall exports, Australia business contributed 73 per cent in 2020-21, while 26 per cent came from the US. The revenue share from the US market increased from 17 per cent in the previous year, indicating a faster growth.
Achal Bakeri, Chairman and Managing Director, Symphony, told BusinessLine that the pandemic-induced lockdowns and movement restrictions had hampered air-cooler sales in India. “But the US helped us stay positive and in Australia also we had a good topline growth. Even after the devastating second wave, we expect to close the current fiscal with about 200 per cent growth in the US market over last year,” Bakeri said. The company has a low base in the US with about 5 per cent market share in the overall ₹2,100-crore market.
Symphony operates through local subsidiaries in Mexico, Australia, US, Brazil and China, while it exports directly to over 60 countries. In Australia's ₹900-crore market, Symphony enjoys about 28 per cent market share. “In Brazil we have set up a trading company a year ago. Going further, we expect Brazil to contribute significantly to our overall exports,” Bakeri said.
Focus on smaller towns
In India, the company is focusing on strengthening its presence in the smaller towns. “Since demand was there, there were supplies too. The challenge was the linkage between demand and supply as retailing was hampered due to the pandemic. But in smaller towns the markets were still open. So, we are emphasising on smaller towns and also increasing our e-commerce presence. Our endeavour is to make it easier for customers to access Symphony products,” he said indicating that demand is reviving.
The company has built a product pipeline for new segments in the commercial and industrial space besides its stronghold in the home segment. Commercial and industrial segments have a combined share of less than 10 per cent in the company's overall revenue. “There is a great potential for growth in these segments with multiple products. Now, we have our products in place and channel expansion is underway. Next summer, we hope will be much better for us,” said Bakeri.
The second wave of Covid-19 hammered down Symphony stock from its 52-week high of ₹1,529.65 in March 2021 to ₹947.05 at Tuesday’s closing on the BSE, erasing about 38 per cent in stock value during the second wave. However, the stock is still trading nearly 5 per cent higher from its 52-week low of ₹811 in November 2020.
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