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Business Acquisition Opportunity of a well established HVAC company Establishment : 1994

Owned

Investment Range:Rs 2 Crore

Reason for Sale:Retirement

Industry:Electrical , Electronics

State:Karnataka

Year of Establishment: 1994

Revenue (Latest Year): Rs. 8.66 crore

EBITDA (Latest Year): Rs. 98.58 Lakhs

Net Profit (Latest Year): Rs. 45.75 Lakhs

Total employees:20-50

Business Model: B2B,B2C

Nature Organisation: Private Limited Company

Sub Industry:Electrical , Electronics

City:Bengaluru

Type of Investment:Sell Business

Company Type:Owned

License AvailableYes

License Name

Total Customer: 20

Listing ID:KS1372

Business Description

Established in the year 1994, our client provides an entire spectrum of HVAC solutions which comprises of Design, Marketing/sales, Supply, execution, and after-sales services for various retail and commercial applications and has done significantly well. They proudly claim of  having highest installation base of air conditioning in Karnataka region comprising of various customer segments including commercial establishments, offices, software companies, premium high rise apartments, premium villas, hotels, education institutes, hospitals, etc

 

They offer a versatile range of cooling solutions with innovative features ranging from Centralized VRF/VRV System, Ductable & Cassette AC’s, wall mounted split AC, Ventilation Jobs, Retrofit Jobs and for Specialized HVAC needs, they propose ventilation equipment and air handling unit.

 

They are also into the Business of Annual Maintenance Contracts, in which they have Annual recurring/renewable service contracts/agreements for various applications, having the largest AMC Contracts base of air conditioning in mid-centralized air conditioning space comprising of various customer segments. They provide out of warranty/Chargeable basis service and Retrofit Jobs.

 

On the retail front, they have a showroom to promote the product and give customers a unique experience of Touch, Feel and See the wide range of products they offer before making the decision.

USPs:

1. Product Portfolio: The Company offers a wide range of products catering all the possible market segments such as in Retail ( Ductable, Cassette ACs and wall-mounted split AC ) in commercial spaces ( Centralized VRF/VRV System, Ventilation Jobs, and Retrofit ) AMC, sale of spare parts, and service centers. Our client offers a versatile range of cooling solutions ranging from Centralized VRF/VRV System, Ductable & Cassette ACs, wall mounted split AC, Ventilation Jobs, Retrofit Jobs.

 

2. Technical Expertise: The company is equipped with in house specialized technicians and able engineers who have thrived in the design, service, and execution space. Centralized VRV/VRF space being purely driven by engineering and technical input plays a major role in world-class consulting for the client and cost-cutting for our client.

 

3. Partnership and Support: The company is being associated with one of the leading Japanese companies for the past 22 years who ensure timely training of engineers and support staff on the new product or technology introduced in the market.

Expansion Opportunities:

Valuation For Complete Exit: The Business is Valued at INR 2.1 Cr. This includes the complete business along with a sister firm that deals in the authorized sale of spare parts and the Service center for retail Sales.

 

Reason for Complete Exit: The promoters are looking to retire and pass on the healthy business to someone who can tap the potential of the Business and grow

 

Hand Holding Period: The promoters will be providing a handhold period of six months and any extended term can be mutually decided further

Additional Information:

List of Services and Solutions Provided:

  1. Centralized VRF/VRV System

  2. Ductable & Cassette ACs

  3. Wall-mounted split AC

  4. Ventilation Jobs

  5. Retrofit Jobs

  6. Annual Maintenance Contracts

Financial Snapshot: 

 

Particulars (INR) 2017-2018 2018-2019   2019-2020
Revenue 8,25,41,033 8,66,68,085 6,32,32,273
EBITDA  74,53,502 98,58,378

53,00,000

Adjusted Net Profits  57,95,519 47,57,901

25,00,000

 

Revenue Breakdown:

 

Sr. No                                            Verticals Total
      1                      Commercial & Industrial Spaces 36%
      2                     Hotel, Healthcare & Institutional Buildings  23%
      3                      Single-Premium Family Houses 12%
      4                      HVAC Maintenance & Repairs 18%
      5                      Apartment Building & Retails 9%
      6                                           Others 2%

 

 

Financial Graphs