Displacing a $3Billion European Competitor 🚀 | Ep08 The India Opportunity Podcast

From Startup to IPO: Thermoflyde's Ambitious Journey ft Aditya Aagare

Hello everyone, welcome to The India Opportunity Podcast where you get a front row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators and successful leaders from different fields to bring to you real life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.

8th episode of The India Opportunity Podcast is out now! You can watch it on Youtube or tune in on Spotify or Apple Podcasts.

Today my guest is Aditya, the cofounder of Thermoflyde, a company that specializes in manufacturing high-temperature resistant materials, known as refractories. They are suppliers to some of the largest PSUs in India (for example BHEL and MIDHANI) and over 50 steel plants globally. He is an IIT Hyderabad graduate where he pursued Chemical Engineering. SSV, my family office, is a tech-first investor but Thermoflyde was one of the first non-tech investments we made given the company’s high growth, the competitive advantage the founders have in the space and also high barriers to entry. Thermoflyde is taking on a European competitor head-on that does $3Billion in revenue (RHI Magnestia). Their growth has been nothing short of phenomenal, where they’ve consistently grown 100%+ year-on-year since they started in terms of revenue. I’m excited to deep-dive into the refractory space with Aditya today and learn more about his plans for Thermoflyde and the opportunities in the space.

Takeaways

• Starting a business in college provides a valuable learning experience, even if it doesn't succeed.

• Thermoflyde has been able to gain market share in the refractory industry by offering affordable products and excellent customer service which their European competitors were failing to provide.

• Thermoflyde aims to reach a revenue of 500 crores and go public by becoming a company with sizable revenue, profits, and employee strength.

• The company has grown 100% year on year and aims to reach 500 customers in the next four to five years.

• The refractory industry in India is monopolized by European companies, but Thermoflyde is changing that by offering high-quality, locally manufactured products.

• Thermoflyde’s success is a testament to the potential of Indian manufacturing and entrepreneurship.

• Cash flow management and being cash flow positive are crucial for the success of a business.

• Cracking government tenders and establishing relationships with PSUs can be challenging but rewarding as they tend to be long-term large buyers.

• Invoice discounting is an effective strategy for managing cash flow which Thermoflyde achieves by using the TREDs platform (a platform for invoice discounting).

• Personal ambition and a sense of purpose beyond monetary goals drive the founder's motivation, impacting 1000+ lives.

• Fundraising in traditional industries can be challenging, but perseverance and refining the pitch can lead to success.

• Unconditional support and belief from parents have had a significant impact on the founder's life.

• The book 'Shoe Dog' by Phil Knight is highly recommended for its relatability and inspiration.

• Aditya talks about how people’s kindness helped the business take-off before they had found product market fit.

Timestamps:

00:00 Introduction to Aditya Aagare and Thermoflyde

08:13 The Refractory Industry and Thermoflyde’s Opportunity

21:36 Competition and Success in the Industry (European competitors - RHI Magnestia)

25:10 Becoming an IPO-able business

26:30 Acquiring Land and Setting Revenue Goals

28:40 Lessons in Cash Flow Management

35:30 Invoice Discounting using tREDs platform

42:15 Personal Ambition and Impact

45:40 Kindness and Support from Friends

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Follow Aditya here: LinkedIn

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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.