Crompton BLDC fans achieve GreenPro certification for sustainability

Fans remain a consistent choice in India, and the market for them is expected to stay strong. Today’s fans consume significantly less energy, operating at 30 watts or even lower than the previous 80-90 watts. As Kaleeswaran Arunachalam and Sanjeev Agarwal highlighted, Crompton’s innovative BLDC fans, equipped with smart connectivity, exemplify this energy efficiency commitment. With GreenPro certification and a strong focus on environmental, social, and governance (ESG) factors, Crompton is dedicated to shaping a smarter, more energy-efficient future.

Crompton has recently made significant advancements with automation and proprietary technology development. Could you elaborate on these developments?

Sanjeev: We have made significant advancements in our operations. Our fully automated electronics manufacturing facility encompasses production, software, and assembly testing. Automation is integrated at every stage of our processes, including assembly, integration, and testing. Additionally, we have implemented robotic systems in our factories to improve accuracy and efficiency.

We have also developed proprietary technology for our products, starting with a fan as the first item in this range. We plan to introduce more products in the future. Our goal is to sell approximately 30 million motor units across various applications, showcasing the scale of our operations. 

How is Crompton integrating eco-friendly innovation into its fan technology, and what does the “Tech with Heart” initiative aim to achieve?

Sanjeev: Today, for the average Indian household, the fan is the single product that typically runs for about 16 to 18 hours a day. Crompton holds a significant market share and penetration in this category, which makes our responsibility toward the planet even greater. This is why we have launched “Tech with Heart.” Our technology focuses on aesthetics, convenience, enhanced utilisation, and durability. While these aspects are essential, the core principle of Tech with Heart is to ensure that we leave the planet in a better state. It also gives consumers peace of mind, knowing they are using a product that does not consume excessive power.

Recently, CII recognised us with the GreenPro certification for our ceiling fans and manufacturing facility. This certification evaluates the entire ecosystem and value chain, from material consumption to manufacturing processes to the fan’s usage phase. To meet sustainability requirements when constructing a Platinum or Gold-standard certified building, it is necessary to use Crompton GreenPro-certified fans. 

Sustainability is at the core of our mission. We are focused on reducing our overall impact on nature. When we refer to “losses to nature,” we mean minimising material consumption, natural resources, and waste generation. Our goal is to create completely efficient products. All of our newly launched items are designed to be energy and material-efficient.

We also prioritise the use of recyclable materials. Our manufacturing processes employ machines optimised for power consumption and train our systems to minimise waste. Our Design and Innovation Center also aims to create designs that ensure precise material usage and enhance recyclability.

How is Crompton innovating to enhance consumer experience and future-proof your products in the fan segment?

Sanjeev: Our goal was to enhance the consumer proposition and create future-ready products. We developed a scalable platform suitable for current and future needs, particularly for energy efficiency and various consumer applications. The platform can be controlled using remotes, utilising two common technologies: infrared (IR) and radio frequency (RF). It features 360-degree presence technology, allowing operation from anywhere in the vicinity.

Additionally, we have fans that are compatible with mobile connectivity, including Wi-Fi, Bluetooth, and Alexa integration. All these elements are seamlessly incorporated into the platform, and many more categories could emerge in the future.

These fans cater to a much broader range of consumer usage patterns. One key aspect is noise level, as consumers increasingly demand quieter operation. We have also integrated enhanced comfort and convenience features, making these fans more advanced than previous models.

Crompton has a strong presence in the pump industry. Can you elaborate on your key market segments, recent developments, and strategic focus areas for growth?

Kaleeswaran: We primarily operate in four key segments, with residential pumps being the most significant. We are a market leader in this category, particularly in the North and East regions, where we hold an undisputed position and a substantial market share. Our portfolio includes agricultural pumps, a niche segment of speciality pumps, and we have recently introduced solar residential pumps.

In the residential segment, surface pumps have been driving growth. To strengthen our position, we recently developed a brand architecture for our pumps, which allows us to premium our portfolio. We are leveraging our expertise from previous initiatives to drive expansion in the submersible pumps market. Additionally, we aim to increase our presence in the South and West markets.

A key strategic focus has shifted from pursuing absolute profits to ensuring long-term profitability. Given our market share of over 30% in residential pumps, we are evaluating ways to replicate this success in the agricultural sector. Our efforts include working closely with farmers in rural areas to raise awareness about our products and provide tailored solutions across various horsepower ranges.

Speciality pumps represent a smaller segment, but we continue capitalising on growth opportunities as they arise.

Solar pumps are a significant addition to our portfolio, where we have already achieved approximately ₹200 crore in business, securing and installing over 6,000 pump orders. We are building a strong pipeline in this segment, driven by the government’s PM-KUSUM scheme, which has enhanced water availability in rural areas. For instance, during a visit to a market in interior Bihar, nearly 200 kilometres from Patna, I witnessed firsthand the positive impact of government-led water initiatives.

With an allocated budget of ₹36,000 crore, we expect the PM-KUSUM scheme to boost solar pump adoption significantly. Only a few state governments are actively driving the initiative, but we anticipate substantial growth as more states implement the program. 

What trends do you observe in the demand for pump supply across industries?

Kaleeswaran: The demand for residential pumps has been increasing. In contrast, agricultural demand is more seasonal, largely depending on the monsoon and the characteristics of riverbeds in India. Solar pumps are emerging as a replacement for traditional methods.

The government’s subsidies are not limited to solar pumps; they also aim to alleviate the burden of electricity costs. This initiative serves as a green energy effort for the government, while for farmers, it addresses the inconsistency of the rural electricity supply.

On average, a farmer in India spends between ₹80,000 and ₹100,000 annually on diesel. Solar pumps typically cost around ₹300,000, but the government offers subsidies ranging from ₹200,000 to ₹220,000. This effectively reduces the farmer’s out-of-pocket expense to about ₹80,000, allowing for a payback period of just one year. Even if farmers take out loans to finance the solar pumps, they view this as a long-term investment in sustainability. Saving ₹8,000 to ₹10,000 each month is significant for farmers, which drives this transition.

We are pleased to be part of this initiative. It aligns with our “tech with responsibility” approach, promoting sustainability while recognising the opportunities present in this sector.

What technology are you using to drive product innovation?

Kaleeswaran: There are typically two main components to our approach. First, we focus on smart manufacturing, which involves the integration of robotics and other advanced technologies. This tech-driven approach enhances efficiency and reduces the reliance on manual labour. We have already conducted several proof-of-concept trials and are ready to scale these ideas to a much larger level.

The second component is smart products. For instance, our BLDC fan has IoT capabilities, allowing it to connect to Alexa or Google Assistant. Additionally, it is supported by a user-friendly, content-sensing app designed to enhance the overall user experience. Our innovation wing is highly advanced and not limited to traditional product categories. It works on materials, design, and IoT as separate verticals, in addition to pursuing product innovations for the categories we currently serve and those we plan to explore.

How does Crompton collaborate with external stakeholders to drive innovation and industry standards?

Sanjeev: We actively collaborate with the ecosystem while working internally. We have partnered with several IITs for advanced research and are also engaged with Startup India. Furthermore, we are members of organisations such as the CII (Confederation of Indian Industry). Additionally, we work with government agencies like BIS (Bureau of Indian Standards), contributing to establishing industry standards and developing future-ready product portfolios based on consumer needs.

Can you tell me about Crompton’s future expansion plans and what other consumer products you are considering?

Kaleeswaran: We are evaluating several categories from two perspectives. Firstly, we consider our go-to-market strategy, assessing which products can leverage this strategy and add value. Secondly, we employ a bottom-up approach. For example, when we entered the large kitchen segment, we identified consumer pain points, such as choosing a chimney and understanding the necessary specifications. Based on these insights, we developed a solution from the ground up. Both approaches are active, and we are exploring four to five opportunities.