Voltas to focus on retail market

By Our Special Correspondent

HYDERABAD, OCT. 11. Voltas, the Tata group company, has chalked out aggressive plans for regaining the number one position in the air-conditioner market. The strategy includes using its Dadra plant as a base for `global sourcing' of ACs, a brand-building exercise costing Rs. 12 crores this year (Rs. 6 crores last year), and a greater focus on the `retail market' to double its branded sales to 1.2 lakh ACs in two years.

In the process, the company hopes to increase its turnover of Rs. 750 crores from ACs and refrigerators to about Rs. 1,000-1,200 crores in two years. It has targeted Rs. 500 crore sales from ACs alone.

The company has traditionally relied on institutional sales, and in the process lost the number one position to another company which was focussing on the retail segment. However, Voltas continues to be the leader in cooling appliances, according to Mr. S. N. Tripathi, Executive Director, Unitary Products Business Group, Voltas.

He was detailing the company's plan at a press conference here on Thursday after announcing the `national launch' of its new range of air conditioners, Vertis, which it considers part of its 21st Century international range.

Voltas and Fedders International have already invested over Rs. 40 crores in the Dadra plant to make it the most modern AC manufacturing facility in India, and recently transferred it to its JV, Universal Comfort Products Pvt Ltd. This was a `manufacturing only' JV with equal equity participation by the two, he said. Another $500,000 would be invested next year, followed by another round of Rs. 12-15 crores later, he said.

Internationally, Fedders is known as the leading OEM supplier to most well-known names in ACs. He said 70 per cent of production from Dadra would also go for OEM supplies. Exports of ACs intended to be efficient in 52 degrees C environment are targeted at African countries and the Middle East.

The joint venture will give Voltas the opportunity and a competitive edge to capture a bigger share of the growing retail segment. The Vertis range, he said, would facilitate Volta's foray into the residential segment through the retail channel.

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Section  : Business
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