We believe low penetration of cooling products and their leadership position, along with a solid management track record warrants a great entry opportunity to play the structural story. The summer of 2018 started on a weak note, despite IMD predicting a harsh summer. Consumer offtake has thus far been weak, as evident in cooling products (air conditioner and air cooler) performance in 4QFY18. The room air-conditioner (RAC) industry has witnessed several headwinds during FY18, led by GST transition and the change in energy efficiency ratings. Air cooler industry saw two bad quarters (1Q and 4Q) in FY18 owing to erratic summer.