USA INDIA MEXICO

SYMPHONOMICS. SEEING SOMETHING IN NOTHING.

The art of doing impossible things in a no big deal

kind of way.

The only rule is to break all rules

Third Rule of Symphonomics.

Transform your handicaps into

opportunities

Second Rule of Symphonomics.

Trust your vision.

First Rule of Symphonomics.

Central Air Cooling Solutions

Packaged Air Coolers

Residential Coolers

Symphonomics - creates the range

Symphonomics Provides the advantage

HOT DRY AIR

WATER
DISTRIBUTOR

WATER RESERVOIR

EVAPORATIVE
MEDIA

FAN

Our business space - Air Cooling

COOL
FILTERED AIR

Pre-2000,
positioning was :
Many products
One market

Scaled up
international
presence in 2009

Worlds first
Packaged Air
Coolers in 2015

Went Public in 1994

Post 2005,
positioning is
One Product
Many Markets

Foothold in all
formats of modern
retail in 2013

Established in 1988
with 1 air cooler
model

Suffered financial
stress and
restructured

Central Air Cooling

Solutions in India in
2011

The Symphony milestones

Munters Keruilai,
China acquisition in
2015

IMPCO, North
America acquisition
in 2009-11

Ventured into ACs,

Washing machines
and other durables

Dispersed supplier
base.

Sales to Subsidiary and

Modern Retail on credit.

Dispersed markets and

customer base.

Light

terms

Low risk

Global Distribution
network

Sales only on cash.

Asset and Capital

Defining market

brands.

15 strong sub-

leading Air-cooler

Advantage over
brand.

Worlds and Indias

Design leader,

competition

Brand focused

Design driven

High ROCE & ROE

operations

OEM based

Symphonomics - The Business Model

will accelerate conversion of unorganised market to organised players

GST - Potential game changer

No major Global player

Competitors many leading Indian brands

Market share almost 50% amongst organised market players, despite new entrants

Leader in India by Miles

Worlds largest selling Air-Cooler Brand

Symphonomics & Undisputed Leadership

2015 Worlds first Packaged Air Cooler range.

2014 Indias first branded Window Coolers with all weather composite plastic body.

2012 R&D Centre recognized by Govt. of India.

2012 Worlds largest portable tower cooler Storm.

2009 Diet Coolers with space saving design.

2007 Power Saver Technology (PST).

2005 Humidity control.

2004 4-side cooling for better performance.

2000 e-flow technology for enhanced cooling.

1994 Air cooler with remote control.

1988 First branded plastic air cooler in India that looked like an AC.

Symphonomics & Innovation Milestones

10

Customer centric

designs)

Ahead of curve attitude (new products, new

Focused approach

Distribution leadership

Experience (what to do and what not to do)

Management:

leadership

Technology, Design, Quality,

Features and Performance

Brand and category

Innovation Leadership :

11

Symphonomics Creates Entry Barriers/Moat

Catalyses performance.

Symphonomics.

0.0

9.6

22.3

50.0

Home Appliances

Air cooler: 94%

Rs.465 cr

100.0

81.9

150.0

126.2

137.8

Corporate Funds

Others: 6%
Rs.30 cr

India: 81%
Rs.495 cr

Gross Revenue
Rs.611 cr

50.0

100.0

83.1

0.0

81.0

82.3

Home Appliances

Rest of World: 19%

Rs. 116 cr

Revenue Break up

150.0

139.1
200.0

250.0

194.7

300.0

246.1

Corporate Funds

20

8.2
0

6.4

11.4

40

60

80

100

120

98.6

106.02

13

140

113.5

Corporate Funds

Central Air Cooling Solution 10%

Rs.59 cr

Home Appliances

Residential Air Cooler 90%

Rs.519 cr

Air Cooler Sales

Rs.578 cr

Aircooler Revenue Break up

Revenue Break-Up 2014-15 (Consolidated)

9.1

FY15

FY14

FY13

FY15
FY14
FY13

FY15
FY14
FY13

313.4
7.9

Net Sales

134.4
42.9
52.8
16.8
26.0
8.3
28.3
9.0
241.5
72.7
23.2
78.9
4.9
73.3
20.2
53.1
16.6

Manufacturing Expenses
as % of Net Sales
Selling & Distribution Exp
as % of Net Sales
Other Expenses
as % of Net Sales
Employee Costs
as % of Net Sales
Total Expenditure

Operation Profit
as % of Net Sales
EBITDA
Depreciation

PBT

Tax
PAT

%growth
Average Realisation
%growth

Quantity Sold

Volume Analysis
-4%
5,180
12%

4,82,848

FY12

319.7

Total Income

PAT Margin

6.3

Other Income

%growth

FY12

Particulars(Rs. Crs.)

Financials

7%
5,961
15%

5,17,182

FY13

FY14

29.6
105.7
19.3

135.3

123.3
23.2
139.2
3.8

228.0
42.8
99.7
18.7
39.7
7.5
41.7
7.8
409.1

548.3

15.9

532.4
41.0

FY14

37%
6,381
7%

7,07,044

Standalone

31.2
60.1
15.2

91.3

78.5
20.9
95.5
3.9

167.3
44.3
67.6
17.9
29.6
7.8
35.0
9.3
299.5

394.7

17.1

377.6
20.5

FY13

Consolidated

11%
6,575
3%

7,83,711

FY15

43.6
115.9
19.0

159.5

131.3
22.7
164.2
4.1

238.7
41.3
118.0
20.4
45.7
7.9
44.9
7.8
447.3

610.9

32.4

578.5
8.7

FY15

36.7
98.9
21.2

135.6

121.5
26.9
136.7
1.1

193.9
43.0
92.2
20.4
18.0
4.0
25.6
5.7
329.7

466.4

15.2

451.2
46.3

FY14

FY15

45.3
116.4
21.3

161.7

133.5
25.9
164.5
2.1

217.2
42.2
112.1
21.8
22.2
4.3
30.3
5.9
381.8

545.7

30.4

515.3
14.2

Standalone

313.4

209.4
104.0

FY12

377.6

273.0
104.6

FY13

532.4

394.6
137.8

FY14

Consolidated

578.5

464.2
114.3

FY15

451.2

394.6
56.6

FY14

461.6
53.7

FY15

515.3

Standalone

Operation

India
Rest of the world
Net Sales from

Revenue(Rs. Crs.)

Segmental

(%)
India
Rest of the world

209.1
41.0
250.1

FY12

66.8
33.2

74.1
25.9

273.0
35.3
308.3

FY13

394.6
56.6
451.2

FY14

Standalone

72.3
27.7

461.6
53.7
515.3

FY15

80.2
19.8

87.5
12.5

14

89.6
10.4

Total
7.9
20.5
41.0
8.7
46.3
14.2
* Due to Impco consolidation
..
Break-up of sales

EBIT (%)
India
33.7
29.7
29.1
31.0
28.9
30.9
Rest of the world
3.4
9.9
15.0
14.3
38.0
36.3
Total
23.6
24.2
25.4
27.7
30.1
31.5
.
Y-0-Y Analysis
Revenue Growth (%)
India
7.9
30.4
44.5
17.6
44.5
17.0
Rest of the world
7.9
0.6
31.7
(17.1)
60.2
(5.1)

Operation

Net Sales from

India
Rest of the world

Revenue(Rs. Crs.)

Segmental

300

298
320

400

0.0

2008

5.0

2009

10.0

2010

15.0

2011
18.9

20.0

2012

31.2

700

2015

611

25.0

30.0

28.4

2015

600

549

2014

24.0
22.9
23.1
24.9
26.1

2014

500

2013

2013

395

2012

35.0

20

15
29

40

37

2010

2,50,000

2009

CAGR 26%

2008

2011

60

51
53
60

2011

3,75,000

262067

2010

154831

2009

1,25,000

2008

PAT (Rs. Cr.)

200

194

2011

PBT (% on Gross Revenue)

127

2010

CAGR 20.67%

100

74

2009

Volume

CAGR 29.93%

2008

Gross Revenue (Rs. Cr.)

Financials - P&L
2013

80

2012

5,00,000

100

2013

6,25,000

421355
501165
495849
574750

2012

106

120

116

2014

15

140

2015

8,75,000

740757
808963

2015

7,50,000

2014

2010

2011

2012

2013

2014

2009

4.2

5.0

2008

10.0

8.2

10.6

2010

2012

15.0

20.0

14.6
15.2
17.2

2011

25.0

2013

35.0

33.1

2015

7
7
7
7
7
7
7
7

2015

30.2

30.0

2014

EPS (Face value of one share Rs. 2) (In Rs.)

2009

2011 onwards, consolidated with IMPCO

0.0

2008

Equity (Rs. Cr.)

0.0

0.0

2.0

2009

4.0

2010

2.4

2008

20.0

14.8

40.0

2010

24.8

2009

Book Value (In Rs.)

0.0
0.0
0.0
0.0
0.0
0.0
0.0

2008

Debt (Rs. Cr.)

43.6

2011

2011

60.0

54.1

2012

6.0

2012

Financials - Balance Sheet and EPS

63.5
78.8

2014

8.0

7.8

2014

80.0

2013

2013

16

100.0

93.9

2015

10.0

2015

5.0

4.7

2009

5.6

7.8

2010

25

100

100

200

2011 onwards, consolidated with IMPCO

50.8

2015

2013

2014

44.3

2012

50.3

42.1

5.5

2010

15.9

1.9
10

2009

2011

0.0
0

2008

300

275

2011

10.0

9.1

Dividend Payout Ratio & Dividend %

0.0

1.1
1.5

2008

Capex (Rs. Cr.)

325

12.6

2012

400

15.0

2013

500

2014

20.0

25.0

24.4

650

700

700

Dividend payout ratio

600

2015

Financials - Capex and Dividend

800

Dividend %

17

30.0

Multiplies wealth.

Symphonomics.

Chairman and Managing Director

Achal Bakeri

just eight years ago.

When I look at the way the stock markets

have valued our Company,
I cannot but recollect the days when we
were a loss-making Company,

19

The following pages explain

WHY...

Our humble confession:

weve seen nothing yet.

The most frequent question that

people ask us is, How long will
this last? How long will people
keep buying air-coolers?

Water

Simple and cost

effective

Low
Circulates same air
No

Simple and cost

effective
No
Indoor
No

NA

Recurring cost

Indoor air quality

Refrigerants

Maintenance

Portability

Usage

Emission

Humid climate

Less effective

Eco-friendly

Outdoor & indoor

Yes

Stale dry air

recirculates

100% fresh filtered cool

air

Effective

Environmentally
harmful cfc

Indoor only

No

Complex and
expensive

Polluting refrigerants

Very high

High

AC

90% lower than ac

Low

Low

Capital cost

Air Cooler

Fans

Parameters

Comparison Among Air-cooling Appliances

21

Range summer
campaign

Packaged Air
Cooler campaign

Symphony Brand is synonymous with air cooler

Highest Ad-spend in the air cooler category
Advertising since 1990 through:
TV
Print
Radio
Below the Line
Internet (since 2010)

TV campaign in
Mexico

Domestic Opportunities - Strong Brand

22

Opportunity
Vast Untapped market potential for residential
coolers
Global Warming
Huge potential for Industrial coolers
Growing awareness for Green products
Inorganic growth

Threat
Competition from China

Strengths

Focused on one category

Innovation led
Strong brand
Asset-light business model
No debt
Low competition, globally

Weakness

Relatively small size of the current market

Seasonality in IMPCO

SWOT Analysis

23

3%

0%

Loss of work
output

Loss of accuracy

5%

8%

27

40%

18%

29

300%

29%

32

700%

45%

35

(Source: Study for NASA. Comfort Conditioning the Plant with Evaporative Cooling Plant Engineering July 8, 1976 Pg 76 Joseph Marg

24

Effective
Temp (C )

(Source: The Economist, Page 41 Jan 2013 issue)

79%

41

> 700%

62%

38

Cooling raised productivity by a quarter. On factory floors it cut absenteeism and

stoppages.

90% of American firms named cool air as the single biggest boost to their productivity

Central Air Cooling Long Runway

24

undefined

Rs. 40,000 Mn

branded player

is the only

> Rs. 40,000 Mn

Potential market size

potential customers

establishments are

commercial and religious

Most industrial,

Market size is

in India

Symphony

Central Air Cooling

Central AC Market

Central Air Cooling Long Runway

25

Universities
Lecture halls
Service stations
Poultry farms

Dairy Farms
Departmental stores
DG room
Laundry
Kitchen
Panel rooms
Factory
Industry

Offices
Residences
Shops
Showrooms

Places of worship
Club Houses
Warehouses
Lounges
Canteens
Malls

Guest Houses

Banquet Halls

Central Air Cooling - Potential Applications

26

Enterprise Customers

27

potential should logically

be greater

expected to be 150 mn by
2017 (industry report)

ACs : 75 mn units

accelerating demand

Air Cooler market

Current market size for

Global warming

AC global market size

gaining popularity

Green Product

Air cooler seen as a

International Markets Long Runway

28

Direct Presence

International Markets - Presence

29

Market Access in
North America

2009

Central Air Cooling

Solutions

All products are

made in Mexico

First cooler made in

Mexico

Symphony Acquires
Impco.

2006

International Metal
Products Co. (IMPCO)
founded in Phoenix, USA

Adam Goettl invents

and patents first
Evaporative Cooler

1960

1939

1930

IMPCO
IMPCO Mexico

1955

30

US office in Phoenix

IMPCO

IMPCO plant in Monterrey, MX (150 miles from US border)

31

 Initiated Brand Building through TV ad campaign for

international distribution.

Commercial and Industrial Coolers available to distribute in India and through its

environment-friendly air-cooling solutions

Acquisition has opened substantial opportunities to offer end-to-end economical and

With large format stores like

Symphony started leveraging Impcos relationships

IMPCO

32

 Govt. of India approved R&D centre

Star Export House

Quality Standards, Recognitions

and Certifications

33

Also received ICAI Awards for Excellence in Financial Reporting consecutively for
2009-10 and 2010-11

SAFA Award
For Excellence in Financial Reporting

34

35

The Acquisition of 100% equity in Munters Keruilai Air Treatment Equipment (Gauangdong)
Co. Ltd. China (MKE)
MKE is a market leading brand in China for evaporative air coolers as a joint venture merger
between Dongguan Keda Electrical and Mechanical Equipments Co. Ltd and a Swedish
company : Munters
Before MKE was acquired by Munters it was owned by Chinese owners since it was
established in 2004.
Munters is global leader in the air treatment industry with a turnover of approximately EURO
450M(2014).
Strength of MKE
Outstanding R & D Facility
Premium Products and 80+ IP rights
Manufacturing facility of 32,850 sq. m. at Donguuan City in China
Only Chinese air cooler brand with international recognition
Symphonys opportunities
Market access to China
Enhanced international access
Synergy
Sourcing advantage

Acquisition of a Company in China

Symphony House, FP12-TP50

Bodakdev, Off SG Highway,
Ahmedabad 380054.

INDIA
Symphony Limited

MEXICO
Impco, S.de R.L. de C.V.

36

CHINA
Keruilai Air Treatment
Equipment
(Guangdong) Co Ltd
6520 N. 7th Street Suite #235 Avenida Miguel Aleman #6061, No.81 Fenxi Yi Road, Wanjiang
Col. America, Guadalupe N.L.
Phoenix, AZ 85014
District 523055 Dongguan
Mexico, C.P.67130
Guangdong China

USA
Symphony USA, Inc.

www.symphonylimited.com

October 2015