Voltas wants to become one of the top three consumer brands in India

6 Sep 2023 , 12:23 PM

The Tata-owned company Voltas, which is arguably best known for its refrigerators and air conditioners, wants to become one of India’s top three consumer durable brands. Company chairman Noel Tata told ET in a media interview that it is being ‘recrafted’ with higher capital allocation, quicker decision-making, and strengthened leadership. 

According to him, Voltas is also de-risking its value chain by promoting stronger backward integration and giving more direct control over the production process.

In addition, Tata serves as vice chairman of Titan and Tata Steel and chairman of Trent. He serves as a trustee on the Tata Trusts board.

‘Have refashioned Voltas’ Parallel to this, Voltas has been undergoing renovations. In the 1980s, the business had a high brand equity in the market, but it was unable to compete aggressively due to outdated technology and size.

Air cooling and refrigeration appliances are a subset of the home appliances market that Tata seeks to dominate.

Tata, the half-brother of Tata Sons chairman emeritus Ratan Tata, stated, ‘Our goal is now to be among the top three consumer brands in India.’ ‘Decades ago, when we were active in the consumer durables market, we lacked both size and best-in-class technology. As a result, our plant was extremely inefficient.

Twining two essential components has shown to be the secret to success.

In order to provide Indian consumers with top-notch products, Tata said, ‘Today, we married a world-class consumer durables company with one of the best distribution organizations in the country.’ Few people are aware that our partner Beko, which has more than 3,000 registered global patents to its name, is the third-largest white goods brand in the world.

Mukundan CP Menon was appointed by Voltas as an extra director and executive director to run the room air-conditioning division in June. Observers of the business view Menon, who was until recently president and COO of Blue Star, as a future leader.

Over the past two fiscal years, Voltas achieved strong revenue growth of 25%, going from $7,556 crore in FY21 to $9,499 crore in FY23. However, Covid and one-time provisions incurred in the international projects industry had an impact on profit.

India is viewed by the company as the world’s largest growth engine.

The industry has been urged to ‘Make in India’ by the Indian government, according to Tata. Voltas replied by announcing its largest-ever manufacturing investment, which will enable it to produce both room air conditioners and commercial air conditioners here in India. Our domestic market share will increase thanks to these investments, but the company will face certain new difficulties as a result. I have faith that these investments will considerably boost the business in the long run.

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