Building a Not-for-Profit: The Journey of RATA

For over 15 years, I’ve been part of a journey that transformed a simple idea into a thriving not-for-profit organization—RATA, the Refrigeration and Airconditioning Trades Association. Our goal? To unite MSMEs in the HVAC&R industry and create a sustainable ecosystem for growth. The sector is expected to grow eightfold in the next two decades, and we knew the time was now.

The Trigger

Our industry was fragmented, with little attention to long-term sustainability. Multinational corporations dominated the market, leaving small businesses struggling to keep up. We were dependent on imports for 70% of our equipment, and the quality of installations and safety standards were declining. Business owners, frustrated by low profits and slow growth, were hesitant to pass their legacy on to the next generation. It was time for change.

Like-Minded Associates

I wasn’t alone in this realization. I found support in Paras Sirohia, Akash Varma, and Mihir Sanghavi—three people with a shared vision. Together, we set out to build a trade association that could represent MSMEs in the HVAC&R sector. Paras was a pillar, keeping us motivated and on track, while each of us took on different roles, united by a common goal.

The Challenges

The road ahead wasn’t easy. People told us it was impossible, that nothing had been done in 50 years, and it wasn’t going to happen now. They questioned how we would fund the initiative and reminded us of the failures of previous associations. We heard it all— “It’s a waste of time,” they said. But we knew we had to start somewhere, with whatever we had.

The Tough Call

Despite the doubt, we forged ahead. In the beginning, we met people one-on-one, explaining the need for a trade body that could support MSMEs. Our early events—VRF Mela, Cold Chain Vyappar, and Business Chunautiyaan—were humble, but they helped spread awareness. We were driven by our belief in the mission, focusing on three key principles: our purpose, the value we could bring, and our unwavering commitment to the cause.

The Difficulties

There were plenty of tough moments. Our events often had low attendance, and there was pressure to offer cocktail parties and shortcuts to draw a crowd, but we resisted. Our membership numbers dwindled, at one point threatening to drop below 100. I remember a sponsored event where we expected a large turnout, only to have just ten attendees. It was embarrassing, and I questioned why we were doing this. Other trade bodies dismissed us, but we kept going, determined to prove our worth.

The Breakthrough

Then came COVID. While the world shut down, we saw an opportunity. We realized that our purpose—to help small businesses in our industry—was more critical than ever. I spent late nights attending virtual sessions from across the world, learning how industries were pivoting. That’s when we discovered live streaming. Using YouTube and WhatsApp, we reached people in a way we had never done before. It was a turning point, and our membership surged from under 200 to 1,250.

The Strategy

Our strategy was simple: live stream events on YouTube and share the links via WhatsApp groups created for each city. Members engaged, and the word spread. We launched a monthly event series called Business Chunautiyaan, showcasing opportunities and success stories from within the industry. The series ran for two years, with 24 episodes that helped our members stay positive through the pandemic. By the end, our membership had grown to 1,250 companies across 20 cities.

Growing Pains

With this rapid growth came challenges. Our back office struggled to keep up, the only person we had left for green pastures at a time when Covid had struck all of us and we had to hire and train new staff online. Our existing team was tech-challenged, and our constitution, designed for a local association, was not equipped to handle our national expansion. Yet, the momentum of our growth gave us the energy to push through a new constitution. We implemented a new federal structure that allowed RATA to belong to its members across India, ensuring it would be run democratically and professionally

Consolidation

After such rapid growth, we faced the need for consolidation. The fast-paced expansion was exhausting, and we had to pause to assess our next steps. There was talk that this growth was just a temporary phenomenon, but Mihir Sanghavi, who was at the helm during this period, ensured that we stayed focused. We focussed on bringing value to our members. We stabilized, growing from 1,250 to 2,100 member companies, with committees in 15 cities. We proved that our constitution could handle this expansion and was built to sustain the organization in the long run.

Institutionalization

Once we had consolidated, the next step was to institutionalize RATA. We started as a small group of people with very little funding, but we knew that for RATA to thrive, it had to outgrow us. It had to be co-owned by the MSME community. Akash Varma played a crucial role in ensuring this, taking a step back from the presidency and focusing instead on securing our financial reserves and ensuring compliance as a Section 8 company. His decision to step aside was a lesson in leadership—sometimes you have to step back to allow the organization to take a leap forward.

The institutionalization process also involved passing the baton to the next generation of leaders. We made sure that RATA’s growth wasn’t confined to Mumbai. The “RATA bug” spread to leaders like Urvish Shah in Ahmedabad, Vishal Kapur in Kolkata, Sachin Maheshwari in Delhi, and others across the country. They became the carriers of the RATA mission, spreading it to their cities, ensuring the organization became a true movement among MSMEs in HVAC&R. Today, RATA belongs to its members, and they manage it with the same passion and professionalism we began with.

The Future Ahead

The RATA Conclave is now the hallmark of our aspirations. We envisioned this a decade ago, and with our third event in Mumbai, we’ve shown that we’re not just a mom-and-pop operation. We are a group of entrepreneurs with the drive to scale, to elevate the HVAC&R industry in India. Sachin Maheshwari, is our first President from outside Mumbai he is setting the stage for the next leap forward.

My Personal Takeaways

Fifteen years into this journey, I’m more excited than ever. Here’s what I’ve learned:

1. Purpose drives progress – A clear mission helps overcome even the biggest challenges.
2. Resilience matters – Believing in your cause will help you push through the most difficult times.
3. Relationships are invaluable – The people you meet along the way they will become lifelong friends and allies.
4. Legacy is its own reward – Knowing that you’ve contributed to something larger than yourself, something that will continue long after you’re gone, is the most fulfilling outcome.

RATA is more than just an organization; it’s a movement that belongs to every MSME in the HVAC&R industry. Together, we can build an industry that’s not only ready for growth locally but also equip our future generations to thrive globally.