Pune-based smart appliance maker Atomberg Technologies is doubling down on indigenous motor and compressor technologies as it looks to expand beyond its core ceiling fan business and build a larger components ecosystem for appliances, defence applications and industrial automation.

Founded in 2012 by IIT Bombay electrical engineering graduate Manoj Meena, the company began with research-led motor and controller projects before pivoting to the large commercial opportunity in energy-efficient ceiling fans powered by brushless direct current (BLDC) motors.

In an exclusive conversation with Fortune India, founder and CEO Meena said the company’s decade-long expertise in motor and controller technology now forms the foundation for its next growth phase.

“Our core strength has always been deep engineering capability in motors and controllers. That expertise is now helping us build a broader ecosystem of components for appliances and other emerging sectors,” Meena said.

Building a new B2B growth engine

A key pillar of Atomberg’s strategy is its expanding B2B components business, housed under its subsidiary Atomberg Innovations Private Limited, he said.

The company, backed by investors including Temasek, Jungle Ventures and A91 Partners, is developing motors, controllers and compressors for large appliances such as air conditioners, refrigerators and washing machines - segments where India remains heavily dependent on imports, particularly from China.

Atomberg has already begun supplying BLDC motors and controllers to companies such as Godrej Appliances and Voltas.

In a major milestone, the company recently unveiled what it says is India’s first indigenously designed air-conditioner compressor at the ACREX industry exhibition in Mumbai last week.

“The compressor is the heart of an air conditioner, and about 50% of it is driven by motor technology,” Meena said. “Because we have deep expertise in motors, we are able to design a differentiated compressor and localise this critical technology.”

“What began as a journey to reimagine everyday appliances through innovations such as BLDC motor technology has now evolved into building engineering solutions right here in India, such as our AC rotary compressor, highlighting our entry into the HVAC ecosystem,” he added.

Investing in manufacturing and localisation

To support its ambitions, Atomberg has established a new 1.5-lakh-sq-ft manufacturing facility in Pune focused on electronics and motor manufacturing for its components business.

“The company has invested around ₹150-200 crore in the facility through a mix of debt and government incentives under the production-linked incentive (PLI) scheme for air-conditioner components,” Meena said.

The plant currently has an annual capacity to produce about 5 million motors and electronic modules, with scope for further expansion as demand grows.

The broader aim, according to Meena, is to localise key technologies and reduce India’s reliance on imported components.

“The mission is to develop critical technologies in India and make the country more self-reliant in core components,” he said.

Expanding into new sectors and products

Beyond appliances, Atomberg is exploring opportunities in high-growth sectors such as industrial automation, drones and defence motors. The company plans to introduce new motor and controller technologies tailored for these applications later this year.

On the consumer side, Atomberg has begun expanding beyond fans into new appliance categories such as mixer grinders and water purifiers, both powered by its proprietary motor technology.

The company initially launched these products through e-commerce channels to test product-market fit before expanding into offline distribution.

It is also building a broader smart home ecosystem that includes connected devices such as smart locks, video doorbells and other IoT-enabled appliances.

According to Meena, rising incomes and aspirational consumption patterns are driving demand for smarter and more energy-efficient appliances, even in smaller towns.

“Consumers in India are value-sensitive rather than price-sensitive. If you offer better design, energy efficiency and smart features, they are willing to pay a premium,” he said.

Disrupting fan market with BLDC technology

Atomberg first gained prominence by disrupting the ceiling fan market with BLDC motor technology. Traditional induction motor fans typically consume around 75–80 watts of electricity, whereas Atomberg’s BLDC fans consume about 28 watts, delivering roughly 65% energy savings, according to the company.

Initially, the firm targeted institutional buyers such as schools, hospitals and commercial establishments that could quickly realise energy cost savings. After gaining traction, it expanded sales through e-commerce platforms before building an offline retail network in 2019.

Today, BLDC fans account for roughly 20% of India’s ceiling fan market, and Atomberg claims to hold more than 50% share within the BLDC segment.

The company believes adoption will accelerate as energy-efficiency regulations tighten and consumers increasingly shift towards smart and efficient appliances.

“The adoption of inverter technology in air conditioners moved from almost zero to 60–70% because of energy regulations. We believe BLDC fans will follow a similar trajectory and eventually cross 50–60% market penetration,” Meena said.

Growth outlook

Atomberg said it has been growing at around 25-30% annually, supported by the expansion of BLDC fans, new appliance categories and increasing manufacturing scale.

As volumes rise, the company expects profitability to improve through operating leverage from its manufacturing base, distribution network and marketing investments.

“With the infrastructure already in place, rising volumes will allow us to leverage manufacturing and marketing costs much more efficiently,” Meena said.