'R&D To Drive Atomberg's Market Expansion'

In a yet another candid interaction with Manoj Meena, CEO of Atomberg Technologies, who just got funding for their business expansion, Faiz Askari of SMEStreet found some key market insights that are shaping up India’s upcoming major potential market of IoT let Smart Home segment.

Here are the edited excerpts:

Faiz Askari: What is Atomberg planning, in terms of business expansion for r the next few months? How do you look at utilizing this level of funding?

Manoj Meena: One of the notable thing about our company’s health is that it is EBITDA positive. The funds will be utilized in three major areas:

R&D- Atomberg, as a brand, will focus more in the R&D of motor. Motor is the heart of all our home appliances. R&D of motors has applications not only in ceiling fans but other home appliances a well. We are setting up new laboratories and infrastructure, which will further enhance the R&D vertical for Atomberg. One of our R&D verticals will work on the opportunities where we can actually exploit BLDC motor technology.  Investing in R&D will allow the company to explore and expand our expertise in mixture grinders and air coolers as well.

"Motor is the heart of all our home appliances. R&D of motors has applications not only in ceiling fans but other home appliances a well. We are setting up new laboratories and infrastructure, which will further enhance the R&D vertical for Atomberg. One of our R&D verticals will work on the opportunities where we can actually exploit BLDC motor technology.  Investing in R&D will allow the company to explore and expand our expertise in mixturegrinders and air coolers as well," Manoj Meena of Atomberg

Faiz Askari: How will the funding amount help Atomberg to expand the home appliances segment?

Manoj Meena: Atomberg Technologies focuses completely on smart &energy efficient home appliances. We plan for two more smart product line and also expand our portfolio in the ceiling fan portfolio.Atomberg, as a brand, also plans to introduce more IoT enabled ceiling fans and cater to a larger range in terms of price segment in ceiling fans.

Faiz Askari: In terms of market, does Atomberg plans for more geographic expansion? In which all markets Atomberg is present as of now?

Manoj Meena: 50% of our sales takes place through online channels and the other 50% boost is the result of offline sales. In offline there are two parts – 1. Institutional sales 2. General sales. In fact, the geographical expansion will be the second area of fund utilization. We have good presence in Mumbai and Pune region. To name a few, we also have expanded in metro cities like Bangalore, Chennai, Hyderabad, Ahmedabad, Delhi, Kolkata. These are few tier 1 and metro cities where we are planning to expand our presence in larger geographies in the next 18 months 40-50 newer markets in the country including tier 1 and tier 2 cities.

Atomberg's Online Focus

"Atomberg’s 50% of sales boost is through online portals. We, as a brand, have  already been listed on Amazon, Flipkart, Snapdeal and our own website. In terms of numbers, we have 10% shares in the online market in ceiling fans category."

Faiz Askari: What about e-commerce strategies?

Manoj Meena, CEO and Co-founder, Atomberg Technologies

Manoj Meena: As mentioned earlier, Atomberg’s 50% of sales boost is through online portals. We, as a brand, have already been listed on Amazon, Flipkart, Snapdeal and our own website. In terms of numbers, we have 10% shares in the online market in ceiling fans category.

Faiz Askari: With reference to R&D expansion, how much are you looking to invest in? Where exactly would be your R&D units?

Manoj Meena: As Atomberg Technologies’ office is located in Navi Mumbai and have our R&D units. We will definitely expand the R&D unit. The recent $10 million funds will also help us in setting up new laboratories and instruments to enable effective validation of the products. A fairly good amount of investment will get into this and other than hat we will also expand or patent portfolios.

Faiz Askari: How many patents your company has filed?

Manoj Meena: We have filed a couple of patents but are in pending process. In terms of the exact number, we have filed a patent. R&D is one part, research laboratories, the equipment we will definitely undertake further purchases. Whenever there’s a new product launch in the market, a lot of investments are needed for manufacturing and this will be one of the areas plan to use the Series A funds for.

Faiz Askari: With regards to the home appliances segment like water purifiers, IsAtomberg Technologies is more interested in motor intensive products like mixtures fans? Is there any other focus that which are also related to motors like RO, vacuum cleaners etc.?

Manoj Meena: Currently our technology is more concentrated on motor-based home appliances like mixtures, grinders, ceiling fans etc. We have air purifiers, vacuum cleaners hairdryers etc are also running on motors. We are also planned to tap the bigger segments like AC’s, washing machines. In short, Atomberg will majorly focus on energy-efficient appliances.