Azure to invest Rs 45 crore in ACs

Nalagarh-based Advantec Coils Private Ltd, an air-conditioner manufacturer having the brand "Azure", has planned to invest Rs 45 crore to expand manufacturing facilities, and install new machines and assembly lines, besides introducing new technologies in its units. The Rs 160-crore company is also planning an IPO in two years.

The company has targeted a step-up of sale by more than 100,000 ACs next year. It exports air-conditioners to Dubai, Japan, the US, South Korea, Iran, and Saudi Arabia and other Gulf countries.

Speaking to Business Standard, Sanjeev Ummat, assistant general manager (sales and marketing) said Advantec was a major player in the market for indoor units of split air-conditioners for a wide range of models, marketing its products to almost every leading air-conditioner manufacturer, both in India and abroad.

"Of our total sales, 30 per cent are domestic, 25 per cent are exported, and 45 per cent are accounted for by original equipment manufacturer domestic sales. Though a major share of domestic sales comes from the National Capital Region and Mumbai, Punjab constitutes 15 per cent of it. We also export to companies like GE, Sanyo, Cool-line, Classic, Awal Gulf, and Supra."

Started in 1993 by Managing Director Gurvinder Pal Singh and Director Raj Kumar Singh, Advantec has three manufacturing bases.

"All the three are in Himachal Pradesh, one in Nalagarh and two in Bahadurgarh. Everything required for manufacturing an air-conditioner is manufactured in-house. Our variant sold with the name Star Energy is the highest electricity saver among all other leading ACs in India."

"Star Energy is reported to be the best energy saver and apparently the most affordable," said Ummat.

The brand has a range of more than 42 models, which include High Volume AC, Tower Split AC, and Cassette Split AC. "Next year, we are also coming up with some new products like water dispensers, cassette and air conditioners. With these these products, our company will become the first to manufacture them in the country.''

Advantec plans to become a Rs 1,000-crore company in three years. "Last year, we sold 205,000 air-conditioners, this year till now we have sold 260,000, and next year we are planning to sell at least 400,000 air-conditioners.''