Can Summercool’s Rs 350 crore manufacturing expansion unlock its next Rs 100 crore in revenue?

Summercool is doubling down on manufacturing as it prepares for its next phase of growth. The home appliances maker has committed investments of over Rs 350 crore across new facilities to reduce outsourcing, improve margins and expand into new product categories, while targeting Rs 600 crore revenue this fiscal.

"We have already invested around Rs 300 crore towards future expansion, and manufacturing remains our biggest priority," Ashutosh Gupta, director – sales & marketing, Summercool, told ETRetail.

The company currently operates four manufacturing facilities in Ghaziabad, spread across 4 lakh sq. ft. , producing air coolers, fans, geysers, pumps, and other appliances. It is now adding three more manufacturing projects to strengthen its in-house capabilities.

The first is a 2-acre air cooler manufacturing facility with an investment of Rs 50 crore, scheduled to begin production by September 15.

"We currently sell around 8-9 lakh units annually, but nearly 50 per cent of production was outsourced. This year, we'll shift to 70 per cent in-house manufacturing," Gupta said.

The second and largest project, which the company announced a few days back, is a Rs 250 crore integrated manufacturing facility spread across 5 acres, where construction has already begun.

"We completed the Bhoomi Poojan in June, and the facility should be ready in the next 18-24 months," he said.

The plant will manufacture air coolers, washing machines, televisions, and eventually induction cooktops and other home appliances.

A third 2.5-acre facility in YEIDA, Noida, with an investment of Rs 50 crore, will manufacture critical components for air coolers and small appliances under Uttar Pradesh's electronics manufacturing ecosystem.

The strategy is aimed at creating greater control over manufacturing while improving profitability.

"Today, we still procure many products from outside. Once these facilities become operational, we'll manufacture much more in-house, improving margins, pricing competitiveness, and product differentiation," Gupta asserted.

According to him, the new capacities are expected to increase the company's revenue by 1.5-1.6 times over the next few years.

"If we manufacture our own products with our own designs, retailers earn better margins, customers get differentiated products, and demand automatically increases," he added.

Currently, 55-60 per cent of Summercool's revenue comes from air coolers. The company also plans to enter the air-conditioner category through the OEM route next year, while own manufacturing is likely 2-3 years away.

Apart from this, Summercool plans to increase its distributor network from 350 to over 500, while expanding aggressively beyond North India into Gujarat, Maharashtra, Odisha, Raipur, and Chhattisgarh.

The company currently reaches 6,000-10,000 retailers through its distribution network.

Summercool crossed Rs 500 crore revenue in FY26 and is targeting Rs 600 crore this fiscal, backed by 20 per cent annual growth over the past three years.

"We believe market demand itself will grow by around 30 per cent over the next two years, and we're building manufacturing capacity to meet that demand," Gupta said.

The company currently operates at an EBITDA margin of 20-22 per cent and expects greater in-house manufacturing to further improve profitability.