How start-up Novamax overcame challenges from low-priced unorganised sector

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the country launched in the last few years.

In conversation with Adgully, Harshit Aggarwal, CEO and Founder of Novamax Air Coolers, speaks about the vision behind founding Novamax, government initiatives and policies, challenges encountered during the early stages, in-house research, development and production, and much more.

What was the initial vision behind the founding of Novamax?

Novamax was founded in 2018 with a vision to revolutionize the industry. Our journey began by introducing coolers designed to meet the needs of a diverse customer base at an affordable price. Our commitment towards innovation and quality ensures our products enhance comfort and satisfaction for all.

What challenges did you encounter during the early stages of Novamax, and how did you overcome them?

During the early stages, we faced some of the major challenges like constant weather fluctuations and competition from local players offering low-quality products at low prices. We overcame these by implementing a multifaceted approach, focusing on consistent production and superior quality. By emphasizing on innovation and reliability, we differentiated our products and built customer trust, ensuring our coolers stood out in the market, which is cluttered with substandard products.

In what ways does Novamax Air Coolers distinguish itself from competitors in the market?

Our unique in-house research, development, and production set us apart from the other competitors in the market. Our diverse product line, including commercial and dessert coolers, stands out for its environmental friendliness, ease of cleaning, virus resistance, and straightforward installation. These features ensure our coolers are high-quality, user-friendly and sustainable.

What strategies have enabled Novamax to become the 5th largest player in the industry?

Our focus on providing high-quality appliances at a reasonable rate is one of the reasons behind us becoming the 5th largest player in the industry. Additionally, we launched engaging Ad films themed around Indian elections and newsroom chaos to connect with consumers. Also, our products are backed by strong warranties and excellent after-sales service.

What was the initial investment amount for Novamax? What were the primary sources of funding during its early stages, and did the company seek any external investments or loans?

Our initial investment was Rs 3 crore. When we started in 2019, we sold 20,000 air coolers. However, from 2022 we saw significant growth, selling over one lakh units each season. We primarily relied on the founders’ savings and support from family and friends, without seeking external investments or loans. As of March 2024, we have made a revenue of Rs 160 crore, selling close to 2 lakh air coolers season-to-season.

How has Novamax achieved a significant turnover of Rs 160 crore since its inception with an initial investment of Rs 3 crore?

We achieved a significant turnover of Rs 160 crore by focusing on high-quality, affordable products that meet diverse customer needs. Strategic marketing, including engaging ad campaigns and a strong digital presence, boosted brand awareness. Our commitment to excellent after-sales service and leveraging technology for streamlined operations ensured customer satisfaction and loyalty. This customer-centric approach and continuous innovation drove our rapid growth and substantial market presence.

How have in-house research, development, and production contributed to Novamax’s commitment to quality and innovation?

In-house research, development, and production are integral to our commitment to quality and innovation. By controlling every aspect of the process, we ensure strict quality standards and encourage continuous improvement. This has allowed us to swiftly implement innovative features, tailor products to customer needs, and maintain consistency across our offerings.

Have any government initiatives benefited Novamax Air Coolers?

Programs promoting energy efficiency and environmental sustainability have aligned with our focus on eco-friendly products. Additionally, support for local manufacturing under the “Make in India” initiative has helped us streamline production and reduce costs. These initiatives have enabled us to enhance our product offerings, expand our market presence and contribute to our growth and success in the industry.

What advice would you offer to young entrepreneurs in your sector?

To young entrepreneurs in our sector, we advise focusing on quality and customer satisfaction. Always remember to understand your market and offer value through reliable and affordable products. Invest in strong marketing strategies, including digital media, to build brand awareness. Lastly, be adaptable and ready to innovate, as staying ahead of industry trends is crucial for long-term success.

What are Novamax’s future plans for expanding its product portfolio, and how do these plans align with its goal of becoming the top player in the industry within the next three years?

We plan to expand our product portfolio by venturing into new categories such as washing machines and air conditioners. Also, over the next few years, we aim to significantly increase our sales while maintaining our commitment to top-notch customer service. By using technology to streamline processes and enhance convenience, we are positioning ourselves to become the top player in the industry within the next three years.