Tata group firm Voltas, which entered into a joint venture with Turkey's Arcelik AS a year ago to manufacture and market consumer durables, has now laid the foundation stone for its first plant in Sanand, Gujarat.
The plant, which will make refrigerators, washing machines, microwave ovens and dish washers, will be ready by next year, marking Voltas's foray back into home appliances.
The durables brand will be called Voltas Beko and will come at a time when the pecking order of domestic appliance makers has been disrupted by Chinese brands.
Consumer durables in India is largely dominated by multinational companies based in Korea, Japan and the US. While Voltas, best known for its air conditioners, last made products such as washing machines and refrigerators two decades ago, its entry back into the category will lend heft to Indian majors.
Godrej is the only other key Indian consumer durables player today, after Videocon was admitted for insolvency proceedings earlier this month.
Voltas Beko is targeting sales of Rs 65 billion in a decade, according to an investor statement by Arcelik and will provide all the necessary technical expertise to its Indian partner, it said.
Voltas, on the other hand, will provide sales, marketing and distribution support. It will also set up a research and development facility next to its Sanand plant to leverage its association with Arcelik.
Pradeep Bakshi, managing director & CEO, Voltas Limited, said, "We are happy to have laid the foundation stone for a manufacturing plant in Sanand, under the Make in India initiative. I am confident that Voltas and Beko, one of the leading home appliances brand in Europe, will play a significant role in catering to consumer aspirations in home appliances."