The history of Amber has been shaped by a passion for innovation and growth and aseries of pivotal long-term value creating transactions. This year marked anothertransformative moment with the acquisition of Sidwal. Our product portfolio today isstronger and more diverse than ever. The acquisition has provided us the opportunities forgrowth and innovation while also upgrading our business profile and giving us an exposureto the emerging sectors of the economy.
Our performance during the year had minor impact from the unseasonal rains low festiveofftake and inventory pile up in the channel. New customer acquisitions helped usreinstate steady numbers. On a consolidated basis the total revenue for FY 2018-19 stoodat ' 275199 Lakh as against ' 212808 Lakh in FY 2017-18. Our constantendeavour in strengthening the core resulted in our revenue from AC growing from '154043 Lakh in FY 2017-18 to ' 174075 Lakh in FY 2018-19. We have seen a stronggrowth in our AC component's division as well owing to increasing penetration level withour existing customers. The AC components division grew from ' 29993 Lakh in FY2017-18 to ' 41719 Lakh in FY 2018-19. Our non-AC components divison grew from '28771 Lakh in FY 2017-18 to ' 59405 Lakh in FY 2018-19.
R&D - the underpinned fundamental
Your Company is committed towards technology driven innovation and lays strong emphasison inculcating an innovation- driven culture within the organization. Our state-of-the-artR&D department ensures that our end products are of top quality and design yetenergy-efficient and appropriate for the Indian tropical climate. Besides that we areconstantly focussing on developing cutting edge solutions to improve operatingefficiencies. During the year we entered into a Joint Development Agreement withSingapore-based Infineon to develop new inverter controller technologies. Besides that weundertook several other measures that strengthened our positioning as a diversifiedconsolidated aggregator.
The befitting synergy
During the year we entered into definitive agreement to acquire 80% equity in SidwalRefrigeration Industries Private Limited which also includes business of SidwalTechnologies. Sidwal is a quality-focused system-driven organisation with diversifiedportfolio in the Heating Ventilation Air conditioning Solutions. It caters to importantverticals of Indian Railways Metros Bus Airconditioning Defence Telecom and CommercialRefrigeration. It has an established market leadership in supplying over 15000 and 2000heating & ventilation air conditioning units for mainline coaches and metro segmentsrespectively.
The acquisition offers a compelling strategic fit bringing in capabilities inaccordance with the Company's business needs and the positive long-term impacts. Considerthe following synergic benefits that we will leverage through this acquisition:
It gives us an entry into the product segment which has high- entry barrier ofupto 6-7 years. Besides this setting up a pan-India service network for maintenance ofthe coaches makes the entry for new player even more challenging. The acquisition willallow us to get these customers on board.
Sidwal's technical background will allow us to provide more comprehensivesolutions to our existing customers for products like commercial air-conditionersair-handling units and fan coil units.
It will enable horizontal deployment of certain products of Sidwal to ourexisting customer base.
It will further lead to adding a new business vertical in the form of mobileapplication and commercial application of air- conditioners.
It will reduce the seasonal dependency of RAC business upto a certain extent.
With raw materials being common for both the Companies it will allow us toleverage our procurement capabilities in bringing down the raw material costs.
The funding for the said acquisition will majorly be done from internal accruals andpartial debt would be taken on the books of Amber. The integration will allow us to takeour business to the next level by emerging as a market leader in mobile and commercialsegment of HVAC industry in addition to our existing leadership position in the RAC roomair-conditioners outsourcing segment.
We are confident of maintaining this leadership position with long-standing clientelebase strong order book and annual maintenance contracts. The Government of India hasplanned to build metro railway system across cities with over 2 million population. Withurbanisation and longer summer months more commuters are preferring air-conditionedtravel in trains or busses. As a result there is an increasing number of air- conditionedpassenger coaches in the railways in the recent years. Even the intercity local trains areexpected to be converted into air-conditioned coaches in the near future.
Besides we are also witnessing an increased traction in demands of our products owingto increasing custom duty of foreign goods. Besides strong demand forecast by brandslogistical hassles for imports and changing dynamic conditions of room AC market shallcontinue to be beneficial for our future endeavours. With the inclusion of Sidwal and anaccess to future ready technology we are confident of achieving an industry-beatingperformance. Throughout Amber's journey we have built honest resilient and mutuallybeneficial relationships with our stakeholders whether they are our customers employeesbusiness partners or shareholders. On behalf of the Board of Directors I would like totake this opportunity to express our sincere appreciation to each and every one of themfor their respective contributions in helping to shape the Amber of today. I am lookingforward to an exciting year in 2019 to create more new success stories that will become apart of our company's history.
Chairman and CEO