Thermocool Eyes Rs 190 Crore Revenue In FY25, Chalks Out Plans For Expansion

As the Director of Operations at Thermocool Home Appliances Ltd, Tushar Gupta is a visionary leader who has worked for the company for four years. He holds a degree in economics and entrepreneurship from Michigan State University in the United States.

With focus on technological upgradation and expansion, he told Bizz Buzz in an exclusive interview that there is huge scope to grow in the market. He said the company has set an ambitious target to achieve a revenue of Rs 190 crore in FY25.

Tushar's passion for innovation and operational excellence drives his interest in expanding the market presence of Thermocool. As its head, the Ghaziabad-based organization is involved in the product launch of advanced products, improving operational efficiency, and expanding its footprint both domestically and internationally. He views Thermocool as becoming a major brand in India and a household name globally.

Tushar lives by his personal belief that "Dream big, work hard, and stay humble." He said he works on establishing a customer-focused, team-oriented atmosphere. He is positive that the creativity of solutions, the hard work, and the collaborative efforts of Thermocool's employees have been among the most significant drivers of success for the company

How would you assess the current state of the consumer durables industry in India, especially in the post-pandemic era? Are we witnessing a shift in consumer behaviour or demand patterns?

In the post-pandemic period, the Indian consumer durables market is evolving extremely rapidly. Excess time at home has accelerated demand for appliances, favouring brands such as Thermocool. Although 90 per cent of transactions are offline, online business is on the move. Thermocool's Rs 300 million investment in a new plant in Ghaziabad proves its focus on innovation and quality. Consumers nowadays demand smart, energy-efficient, and eco-friendly products, and sustainability is one such influencer. With a vision to achieve Rs 190 crore revenue in FY25, Thermocool is strengthening its hold in domestic as well as foreign markets.

With the Indian middle class expanding and disposable incomes rising, what role is India expected to play in the global consumer durables market over the next 3–5 years?

India will be the fourth-largest consumer durables player in 2027 with an 11 per cent CAGR. The industry will expand at 7.1 per cent CAGR to billions by 2028 on the back of rising incomes, aspirational consumption, and demand for items like ACs and TVs. India's export opportunities are on the rise with initiatives like 'Make in India' and the PLI scheme. The expansion is underpinned by smart products, green products, and rural market penetration.

What are some of the major trends shaping the consumer durables sector today—be it digitization, sustainability, or rural market penetration—and how are Indian brands preparing for these shifts?

The consumer durables industry is being led by humongous trends like digitization, sustainability, and rural market expansion. Businesses are embracing digital platforms, building seamless online experiences, and using omnichannel models in dealing with evolving customer behaviour. Sustainability is a push segment, with increasing demand for green and energy-efficient products fuelling innovation. Rural India is also seeing a rise in demand for consumer durables, which is making companies opt to go local and create distribution channels. Indian brands, though, are investing in e-channels, creating green solutions, going rural, and creating clever, networked appliances so that they can keep pace.

Where do you see India in the global value chain of manufacturing and exports in the consumer durables category? Can we expect India to become a global manufacturing hub?

India is ready to become a world hub for consumer durable production based on a robust electronics industry foundation, rising exports, and schemes such as ';Make in India' and the PLI scheme. Players like Thermocool are reacting to this vision with massive investments in production and exports. In order to maximize this potential to the fullest, India needs to concentrate on R&D, innovation, and having a home base of component manufacturing in order to reduce imports and enhance its global competitiveness

How is the sector coping with challenges like inflation, supply chain disruptions, and currency fluctuations? What’s the outlook for margins and growth in the near term?

The consumer durables sector is coping with the pitfalls of inflation, supply chain uncertainty, and exchange rate volatility in the aftermath of localization and innovation. Brands choose value-for-money, price-conscious products localized to local specifications, with range de-complexification and fewer distribution layers. Partnering with local distributors enhances cost-effectiveness and coverage, especially in Tier-II and Tier-III cities. Despite the vulnerability of short-term margins to input cost price fluctuations, consistent demand and effective cost containment measures position the industry on the trajectory towards long-term growth and greater profitability in the near future.

What role are emerging technologies like IoT, AI, and smart appliances playing in reshaping the consumer durables space? Are Indian consumers embracing these innovations?

New-age technology such as IoT, AI, and smart appliances is transforming the game for consumer durables in ease of use, efficiency, and personalization. New-age products such as voice-controlled air coolers and smart washing machines with remote and automation are finding a place with Indian consumers. IoT connectivity is facilitating real-time performance monitoring and maintenance, opening the door for preemptive maintenance. Demand is driven by the technology-led transformation due to increasing interest in energy-saving, green-friendly products. Premiumization is witnessing a surge since consumers look for feature-rich, environment-friendly devices, accepting digital innovation into their lives.

How are brands balancing between affordability and innovation, especially when targeting Tier-II and Tier-III markets?

Brands are emphasizing cost and innovation to cater to Tier-II and Tier-III consumer needs. Low-cost, stripped-down product designs eliminate unnecessary features and minimize expenses without a compromise on quality. Simplified distribution channels and local product Innovation drive availability and penetration. Value-for-money appeal convinces price-conscious shoppers, enabling brands to extend by satisfying the single needs of high-potential, unserved consumers.

What are your expansion plans in terms of manufacturing capabilities and infrastructure? Are there any new plants or capacity enhancements in the pipeline?

We are investing Rs.300 million in a new state-of-the-art unit at Ghaziabad to achieve increased demand and incremental capacity. This is expanding our manufacturing capacity and opening up space for long-term expansion. We are also enhancing capacities in the existing plants such that we will be well-positioned to capitalize on market conditions. By introducing additional manufacturing technology as well as automation, we have a goal to improve efficiency, reduce costs, and deliver product quality consistently according to local as well as international customers & standards.

As competition intensifies in both premium and value segments, how are you planning to expand your product portfolio to cater to evolving consumer needs?

In order to remain competitive in the premium and value segments, we are constructing our product portfolio to adapt to changing consumer behavior. In the premium segment, we offer high-performance, feature-laden appliances for the discerning consumer, and in the economy segment, appropriate, accessible innovation for the local market. The two-pronged approach provides us with a more credible competitive stance, promotes long-term loyalty, and makes our products relevant and responsive to evolving consumer requirements today.

With digital commerce gaining traction, how is your brand balancing offline vs online growth? Are there specific investments being made in D2C or e-commerce channels?

As electronic commerce keeps growing, our brand is seeking agnostic growth through various mixed offline and online adoptions. As much as offline visibility is high, we aim to increase a stronger online presence on e-commerce as well as on D2C. For this, we are exploring web storefronts as well as digital marketing and analytics for a level of personalization. Our omnichannel strategy is designed to allow consumers to interact with our brand seamlessly, and D2C is a better way of establishing more effective brand associations that drive constant interaction and long-term growth in a changing world.

Are you exploring international markets for growth? If yes, what regions are of strategic importance, and what’s your go-to-market approach for exports?

We are also venturing out into international markets as part of our long-term growth plan in Southeast Asia, the Middle East, and segments of Africa, where affordability, reliability, and feature-based products are highly sought after. The strategy includes reaching out to local distributors and retailers to conform to market situations and modifying our range of products as per local requirements while conforming to international specifications. This export-focused strategy attempts to capitalize on global revenues and cut costs in host economies.

What role do partnerships, strategic collaborations, or acquisitions play in your growth roadmap over the next 3-5 years?

Strategic collaborations, partnerships, and acquisitions will form the pillars for Thermocool's expansion over the next 3-5 years. These partnerships allow for expansion in the market, portfolio strengthening, and accelerated innovation. Partnerships with technology companies will bring smart and green elements into our products, while partnering with local distributors will extend our presence in unpenetrated markets. Acquisitions targeting key manufacturing abilities and portfolio diversification will position Thermocool for long-term growth and competitiveness.