With Rs 160 Cr revenue in 5 years, air cooler maker Novamax is making hay while the sun shines

As temperatures soar across the world, the demand for affordable air coolers is on the rise. According to Maximise Market Research, the market for air coolers is anticipated to reach $2.74 billion by 2029 from $1.32 billion in 2022 at a CAGR of 10.9%.  

And, cashing in on this demand in India is Noida-based Novamax. According to Founder Harshit Aggarwal, air cooler companies target consumers from lower to middle income group. Novamax serves this demographic by maintaining affordable price points without lowering quality.

Aggarwal asserts that Novamax's expertise lies in desert air coolers, which are available at prices ranging from Rs 11,500 to Rs 16,000. However, alternative variants start from as low as Rs 5,000. Despite established market players like Symphony, Crompton, Orient Electric, and Bajaj Electricals dominating the organised sector, the founder argues that Novamax's pricing remains competitive and its products have comparable specifications.

Typically larger than personal air coolers, desert air coolers use water and air to cool surrounding air. Although energy efficient, these coolers are noisier than personal air coolers.  

Aggarwal says that one of the advantages of the Novamax air coolers is its energy efficiency. Compared to traditional air conditioning units, which can be expensive to run and maintain, Novamax's air coolers use less energy, making it a cost-effective and eco-friendly choice. 

As for the price difference between Novamax and its competitors, Aggarwal tells SMBStory, “if a customer compares the pricing of our products on ecommerce platforms, they will notice that they are much more affordable. There’s a notable difference of around Rs 3,000. Despite this substantial cost advantage, our quality remains unwavering.”

Aiming for top spot

Aggarwal launched Novamax in 2019. As of March 2024, the company has made a revenue of Rs 160 crore, selling close to 2 lakh air coolers season-to-season. 

“When we started out in 2019, we sold 20,000 air coolers. The years 2020 and 2021 were a nightmare for everyone due to COVID-19 and even though we didn’t make much progress, our business didn’t regress. From 2022 onwards, our business grew and we started selling more than one lakh units each season,” Aggarwal said. 

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He says that Novamax holds fifth position in the industry, and the brand's ambitious goal is to claim the top spot within the next three years.

“What sets Novamax apart is our selling proposition—all research, development, and production are done in-house, compared to our peers who are dependent on third party manufacturers,” Aggarwal explained how it stands out from its competitors. 

From motor to fans, air cooler body, everything is sourced locally, except for the pumps which Aggarwal said is imported. 

Challenges and the way forward

Novamax’s warranty offering as well as service also makes it unique, the founder says. The company offers warranty for two seasons and has a distribution channel of 150 distributors across India along with service centres. 

“We are one of the few air coolers companies in India who are giving after-sale services to customers but the challenge is that we are yet to be serviceable on all pin codes. Right now, the penetration is in bigger cities,” Aggarwal says. 

As for challenges, Aggarwal mentions that the air cooler market has several unorganised players who sell poor quality products at low price. 

“The competition from the unorganised sector is also one of the biggest challenges as the price at which they sell products doesn’t even count in the total product costing and that’s because of degraded quality,” Aggarwal says.

Talking about the future plans, Aggarwal says that the company plans to increase serviceability as well as enter other electrical appliances categories such as iron and mixer grinder.