Voltas working to transform into a full-fledged home appliance maker

By Liam On Oct 23, 2023

Air conditioning manufacturer Voltas is reconsidering its plan to make compressors in the country. The Economic Times (ET) has reported. The company is considering producing these compressors in collaboration with a company from Japan or South Korea. This comes after an earlier attempt to set up a joint venture (JV) with China’s High International failed to gain government approval, the newspaper reported.

The home appliance maker, owned by the Tata group, is considering investments of over Rs 1,300 crore in manufacturing. The investment will support the company’s plan to make components such as compressors in addition to capacity expansion. Voltas will also make newer home appliances, managing director and CEO Pradeep Bakshi said AND.

Bakshi said in the report: “The compressor project is still ongoing and we are looking at other partnerships.” He added, “The company is in the process of investing in new factories apart from backward integration.”

Voltas compressor project

Voltas plans to invest over Rs 350 crore in compressor manufacturing. Apart from this, the company is also immediately investing Rs 500 crore in its Chennai plant to make ACs. Moreover, the company will invest another Rs 500 crore in the plant over the next four to five years. AND report stated.

Bakshi told The Economic Times that Voltas is working towards becoming a full-fledged home appliance company, moving away from the identity of a mere AC manufacturer. For example, the company is venturing into the development of small home appliances such as water heaters and kitchen appliances such as hobs, mixers and juicers.

Voltas has previously received benefits from production-related incentives (PLI) for compressors. However, the company is likely to miss out on the benefits in the first 1-2 years due to the delay in the original compressor plant, the AND report added.

Voltas has entered newer categories such as washing machines and has established itself as one of the largest manufacturers, Bakshi said AND.