While Original Equipment Manufacturer (“OEM”) sales continue to be a major source of our revenue, we plan to gradually expand our share of the ODM model of manufacturing. As an ODM, we control the entire manufacturing cycle of a product from the initial stage of designing and are responsible for all the aspects of manufacturing, including planning and sourcing of raw materials and components. Under ODM, we sell our products to companies which in turn, distribute these products under their own brand to end users.However, warranties with respect to defects in raw materials and workmanship affecting normal use of products are provided by us. The ODM model of business requires additional investment in R&D as well as working capital but provides higher margins as compared to the OEM model.

Currently, our product offerings include ceiling fans, exhaust fans, pedestal fans & BLDC fans. We plan to continue to increase offerings in our current product verticals as well as diversify into new verticals by tapping into segments which in the view of our management have attractive growth prospects and higher return ratios where we have distinctive competence and compelling value propositions.

We plan to continue to focus on customers with whom we have long-standing relationships in order to develop and supply more sophisticated, higher margin products. Our experienced R&D team enables us to bring innovations to our existing customers that translate into new opportunities. Our R&D team has the ability to add new features to existing fan models and develop new product lines.

We intend to continue to be the most cost-efficient player in each of the product verticals we will enter. This cost leadership will be achieved through initiatives like having large manufacturing capacities, backward integration and being a sizeable player in the industry. Economies of scale will also enable us to continuously improve our operational efficiencies.