Industry News

Voltas Planning Optimistically for the Next Four Years, Being Bold and Agile

The air conditioner maker is chalking out its strategy to double its profits over the next four years

India: After the induction of Cyrus Mistry as the chairman at Tata Sons, the organization has gone into an overdrive mode, engaging all the divisions of the organization, especially Voltas, which has seen a tremendous growth in its profits in the first-quarter.

The company’s bet on the idea of air coolers has also proved to work well as the company sold about 50,000 units of air coolers in the first quarter. The management is now looking to expand its product portfolio and dealership network as the competition coming in from firms like Daikin and Hitachi on the room-ac side is worrying.

Voltas has three business segments – Electromechanical projects and services, engineering products and services and unitary cooling products – out of which, the unitary cooling segment generated more than half of the company’s total revenue in the first quarter, and is still growing with a phenomenal rate. Moreover, the company will also be on the hunt for the top brass next in line, as they are nearing their retirement. Along with Voltas, Titan has also started succession planning, since five-six of their top executives will retire in the next two or three years.

According to TechSci Research, the market for air conditioners is set to grow in the coming years. Voltas has offered the consumers a variety of air conditioning products. The air coolers manufactured by them are affordable and effective, which has helped the company reap a lot of profits in the previous years and with Voltas offering the consumers pocket-friendly air conditioners is strong holding their business in the Indian market.

According to a recent report published by TechSci Research, India Air Conditioners Market Forecast & Opportunities, 2020, the Indian air conditioners market is projected to grow at a CAGR of over 10% during 2015-20. Accounting for a lion’s share of the air conditioners market, split air conditioners segment was the highest revenue generator, followed by VRFs and window air conditioners in 2014. The market share of window air conditioners has been declining over the last few years on account of decreasing price gap compared to split ACs, due to which many leading companies such as Samsung and LG have exited from the windows air conditioning segment while other major companies like Voltas, Daikin, Blue Star, etc., have lowered the production of window air conditioners in the country. Northern India generates the highest revenue in the country’s air conditioners market, followed by Southern and Western regions.