§1What this business is
Galvanised steel sheet is sheared, punched, bent and riveted or welded into the cooler body; the fan, water pump and switches are fitted and wired, then grills, cooling pads and water pipes are added and the body is painted. Each cooler is tested for insulation resistance, air delivery and high voltage. Homes, animal sheds and farm facilities buy them because they are cheap to run and easy to maintain.
Capacity: Installed capacity not printed in units; sales ₹76.13 L in year 1 at 35% capacity use, rising to ₹149.97 L in year 5 at 55%.
§2Is it right for you?
Who it is for
A sheet-metal fabricator or appliance dealer who can sell through local shops before the summer rush.
Who it is not for
Someone who cannot fund stock built up in winter for summer sales.
Advantages
- Huge summer demand in north and central India
- Simple sheet-metal fabrication and assembly
- Cheaper to buy and run than an AC
- Also sells to dairies, poultry sheds and farm stores
Drawbacks
- Very seasonal — most sales in 3–4 months
- Plastic-body brands are taking market share
- Thin net margin (5–7%)
- Unsold stock if summer is mild
Skills you need
- Sheet-metal cutting, bending and welding
- Electrical wiring and testing
- Painting
- Dealer network and seasonal planning
Why difficulty 2/5: Simple fabrication; the challenge is the short season and working capital.
§3Market
Who buys
- Households
- Animal shelters, dairies and poultry farms
- Farm controlled-atmosphere stores
- Shops and small offices
How it sells
- Appliance and electrical dealers
- Direct sales before summer
Good to know
- The report lists personal, tower, window and desert coolers as the main types.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Guillotine shearing machine | — | — |
| Power press | — | — |
| Metal cutting machine | — | — |
| Bending machine | — | — |
| Portable drill machine | — | — |
| Gas welding apparatus | — | — |
| Air compressor with spray gun | — | — |
| Testing tools: anemometer and insulation tester; hand tools | — | — |
| All plant and machinery (total) | — | ₹14.50 lakh |
From: PMEGP sample project report — Air Cooler Manufacturing Unit (prepared by Udyami/Samadhan)
- Galvanised steel sheet (2–5 mm)for the cooler body
- Cooler kit: exhaust fan, motor, switchesbought in
- Cooler water pumpfeeds water to the pads
- Cooling padsfitted on the vertical sides
- Cables, PVC or rubber pipes, screws and nutsassembly items
From: PMEGP sample project report — Air Cooler Manufacturing Unit (prepared by Udyami/Samadhan)
§5Licences & registration
- Trade licence
- Udyam
- GST
- Factory licence
- Company registration (optional)
- BIS certification if the product falls under a quality control order
§6Schemes & subsidies
PMEGP sample project at ₹20.44 L; CGTMSE can cover the collateral-free loan.
§7Money
How the investment is worked out: Plant & machinery ₹14.50 L + furniture ₹0.50 L + other misc assets ₹1.00 L + working capital ₹4.44 L = ₹20.44 L. Land and building rented (not in cost). Finance: own ₹2.04 L, term loan ₹14.40 L, working capital loan ₹4.00 L.
Working capital: Working capital ₹4.44 L, of which ₹4.00 L is a bank working capital loan. Stock builds up before summer.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: EEPC India
- The report prints no HS code; confirm the ITC(HS) line with DGFT before exporting.
§9Risks — where people fail
- Short selling season
- Steel sheet price rises
- Competition from branded plastic coolers
- Warranty returns on pumps and motors
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working air cooler manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Trade licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Air Cooler Manufacturing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.