A green alternative to air
conditioning..…
Sumaya HMX Systems Ltd.
Bangalore 560 058
November 2006

Objective
About HMX – introduce company / product
Background
Product - Ambiator
Market
Product Positioning
Market details
Carbon Advantages
Business this far
Performance
Infrastructure available
Promoters
The way forward
Growth plans
Strategy
Financials
Funding Sought

About HMX
HMX has developed an innovative
product Ambiator to the Indian
market, and successfully
commercialized the same.
Ambiator is an energy efficient and
eco friendly alternative to air
conditioner

Background

Ambiator
Products working on similar principles are
called IDEC systems or Two stage
evaporative cooling systems
Identified as Zero ODP and Zero GWP systems
Contemporary research references available
from leading institutions
DOE – USA
Lawrence Berkeley lab
California Energy Commission

Ambiator - features
Provides 100% fresh air
Filtered fresh cool air
Ambiator Cools air to sensible levels
without CFC’s, as it does not have a
compressor
Typically consumes about 35% power
compared to Air conditioning

What is new in Ambiator?
Ambiators represent a new technology
These incorporate a Wet plate, Cross
flow heat exchanger, where based on
Indirect Evaporative Cooling, sensible
cooling is achieved.
This forms the core technology of
Ambiator.

Product positioning
Our positioning to market is as under:
Thermal Comfort
1 3 6 8 10
///_______////__________////_______////____________
Fan Air Ambiator Air
(Ventilation) Cooler Conditioning
Product positioning validated by repeat orders
from leading customers
Large Institutional projects such as DNA, IMTMA

Product Evaluation
Product endorsed by TERI, GTZ n
EMC (GOI)
Report reference DCS –001
Report confirms
Energy saving potential of Ambiators
Quantifies Carbon emission reduction

Carbon advantages..
Ambiator is Eco friendly and Energy efficient
thus offers Carbon Emission Reduction (CER)
Ambiator offers CER, thus offers huge
financial advantages – 0.00085 per CFM/
Hour
TERI report quantifies CER advantages
Ratification of Kyoto Protocol will further the
markets for products that offer CER

Market Acceptance of the product
Early development phase was
challenging, but have been able to
make an impact.
Customers include :
Software: Wipro, HP, PCS,Polaris
Engineering:Bosch, ABB, Ford
Pharma: Sunpharma, Glenmark pharma
Others: IMTMA, Taj Hotels, DNA

HVAC Market in India
Total Market USD
1.6 billion HVAC Market in india
Air conditioners
0.9 billion $
Air conditioners
Air Coolers Air Cooliers
Ventilation
0.35 billion $
Ventilation
0.35 billion $
Growing at 30% p.a

Market by Volume..
Total Market 1.5
Billion CFM Market - Million CFM
A.C – 450 M.CFM
Air cooling –470 Air conditioning
Ventilation
31% Air conditioning
36%
M.CFM Air cooling
Ventilation
Air cooling
Ventilation – 510 33%
M.CfM

Comparison
Description Units Air cooler Ambiator A.C
Outdoor temp Deg.C 45 45 45
Indoor temp Deg.C 30 to 35 23 to 27 22 to 25
Rh % >75 55 to 65 45 to 55
Fresh air % 100 100 5
Microns
Filtration None 20 20
Btu/watts
EER n.a 25 to 50 8 to 10

Infrastructure available
Owns Manufacturing unit at Bangalore
8000 sft of factory
1600 sft of office
Designs and standardization of models
complete
Vendors and associates developed
Networked office and factory

Personnel
HMX has its core team of skilled
technicians, operators
HMX to focus on building its team of
Engineers and executives

Promoters

Promoters
A.Vaidyanathan – B.E., MBA ( IIM B)
Over 2 decades techno commercial
experience in Industry
H. Indushekar – B.E
Over 2 decades of experience in Capital
equipment manufacture

The way forward…

Consolidate on good start..
HMX believes it has reached an
inflection point
HMX has got Ambiator and its
positioning accepted in the market
Funds required to leverage its position
and accelerate its growth

Growth Plan
HMX plans to consolidate its presence and
grow to a Rs.1700 Million (about $ 38 million)
company in 5 years time
HMX has a comprehensive business plan and
strategy.
The key elements required for acceleration in
place
Product Acceptance – various segments
Product Standardization & Coinage

Key drivers for market….
Changing Demographic profile
Higher expectations of Workers & Employees
Changing User requirement
Seeking World class facilities
Clean and Quality production facility
Key sectors driving growth
Services – Software, Finance, Telecom
Manufacturing – Automobiles, Components
Exports – Textiles, Gems and Jewellery
Indian GDP growing at over 8% p.a

Important external factors
Global factors
Wellness awareness
Fresh air vs. Re-circulated air
SARS
Bird Flu
Green Compulsions
Newer standards – adaptive models
India perspective
Tropical realities
Energy costs

Innovation / technology lead
HMX plans to stay at the leading edge
of technology by integrating appropriate
developments - relevant to add value
proposition to customers
HMX has lined up two other products to
retain the edge
Hybrid air conditioners
Economizers

Market and Marketing related
Distinct positioning as an innovative company
Excellent set of referral customers and repeat
orders from them
Awareness among opinion makers
Leading consultants
Architects
Institutions including Air conditioning companies

Funding sought
Funding sought
Equity of Rs.45 Million ($ 1 Million) during
year1
Debt of Rs.60 Million ($1.2 Million) during
Year 2

Projections and profitability
Rupees Millions
Current Year Year Year Year Year
Year 1 2 3 4 5
PARTICULARS
A SALES & PROFIT
1 Net sales 78.05 174.22 372.95 707.15 1189.53 1709.34
2 Operating profit 9.83 27.78 90.98 224.20 434.10 636.48
3 EBIDTA 15.10 34.62 111.66 253.96 469.71 680.05
4 PBT 10.38 23.38 86.73 220.20 430.10 632.48
5 PAT 6.54 14.73 54.64 138.73 270.96 398.46
B PROFITABILITY RATIOS
6 EBIDTA / Net Sales 19.35% 19.87% 29.94% 35.91% 39.49% 39.78%
7 PBT/ Net sales % 13.30% 13.42% 23.25% 31.14% 36.16% 37.00%
8 Net Profit / Sales 8.38% 8.45% 14.65% 19.62% 22.78% 23.31%

Sumaya HMX Systems Ltd.,
A 422 Peenya Industrial Estate
Bangalore 560 058
Ph : +91.80.23721065 Fax: +91.80.23722326
vaidy@hmx.biz