Thermocool emerging as matured consumer appliances entity

When Thermocool, promoted by Rajeev Kumar Gupta and Sanjeev Gupta, began its operations with less than 10 employees in 1992 at Ghaziabad, with a modest local setup of manufacturing unit for air coolers, nobody knew that it would become a full-fledged consumer appliances company in days to come.

In the initial years of its operations, the seed funding for the company came exclusively from personal savings and family contributions, without outside investors or bank loans. Promoted by Rajeev Kumar Gupta and Sanjeev Gupta, the company has evolved into a robust organization with over 300 employees spread across multiple functions, including manufacturing, R&D, supply chain, sales, customer service, and corporate operations.

While scaling operations and expanding into new product categories, Thermocool plans to add 20-25 per cent more employees in the next two years. Besides strengthening research and development, digital marketing, and on-ground service operations to support the fast-expanding D2C initiatives of the company, the main focus of hiring would be on these areas.

The company witnessed an annual turnover of Rs190 crore for the financial year 2023-24, and is estimated to reach Rs250 crore in FY2024-25 because of the good sales across categories. It has reported a CAGR of 25-30 per cent in the last five years on account of newer product offerings, wider distribution, and resultant higher brand visibility.

The company’s five-year vision is anchored in innovation, market expansion, and sustainability. The company aims to achieve a turnover of Rs500 crore by entering new product segments such as smart washing machines, refrigerators, and air conditioners. Alongside domestic growth, it plans to selectively expand into international markets, including Nepal, Bhutan, and South Africa, focusing on high-demand regions for affordable appliances. To fuel this growth, it is also preparing for an IPO within the next 2-3 years.

Talking to Bizz Buzz, Rajeev Kumar Gupta, Managing Director, Thermocool Home Appliances says: “The company owes its enduring success to its relentless commitment to affordability, quality, and building trust.”

It derives its revenues mainly from the wide range of appliances comprising air coolers, washing machines, water heaters, and televisions. As of now, about 90 per cent of its sales come from offline retail and distributor networks, while the remaining 10 per cent are realized through online and D2C channels. This mixed model grants both reach and stability, especially in Tier-2 and Tier-3 markets, where brand trust and relationships at the dealer level are important to drive sales, he added.

The company has been a profitable, self-sustaining enterprise for some time. It has outlined a clear roadmap for expansion, both in capacity and human resources. Accordingly, the company is investing in automation, state-of-the-art R&D facilities, and new product development to strengthen its manufacturing and innovation capabilities. Besides, it will also hire an additional 20-25 per cent of employees over the next two years, especially in technology, design, and customer-facing functions.

Thermocool is a privately held, family-owned company, but is actively planning to go public within the next 2-3 years. The proposed IPO would be a strategic step toward raising institutional capital to expand manufacturing capacity, upgrade technology, and strengthen its distribution network. This would also help the company accelerate R&D and entry into new product categories. The final amount to be raised is still under evaluation, but it aligns with the company’s long-term vision of turning itself into a leading player in the consumer appliance industry in India and expanding globally.