New Delhi: Voltas Ltd, the Tata Group company that announced entry into consumer appliances market in joint venture with Turkey-based Arçelik on Thursday, aims to generate ₹10,000 crore of revenue by 2025 by selling household appliances such as washing machines, refrigerators, microwaves and dishwashers under a new brand Voltas Beko, its managing director and chief executive officer Pradeep Bakshi said.
The company has so far restricted itself to air conditioners and air coolers in the consumer products segment, and has a strong presence on commercial cooling market.
Voltas enters the market at a time when India’s home appliances market is projected to grow at 10-12% annually in the next few years, from around ₹43,000 crore (excluding air conditioners) estimated last year. “Over the next five years, we’ll invest around ₹1,000 crore in manufacturing, marketing and distribution. Both the companies will invest equally,” Bakshi said.
The new company, Voltbek Home Appliances Pvt. Ltd (Voltbek), is an equal partnership joint venture that will launch more than 100 products over the next 3 months.
The company will manufacture all its products at its facility at Sanand, Gujarat. “Arçelik is the technology provider, and all products will be sold under the new brand Voltas Beko targeted to mass and mass premium segments. Initially, we’ll feed the domestic market, and would look at export opportunities for top-end products in future,” Bakshi added.
“We have been looking at India as a potential market for a long time. With its vast population and significant economic growth prospects, India offers huge potential to support our continued plans for global expansion. But, India is a difficult market. It’s not possible to crack a market like India without a strong local partner. We waited until we decided to partner with Voltas,” said Hakal Bulgurlu, chief executive officer, Arçelik.
Post announcement, Voltas last traded 1.7% higher at ₹585.95 apiece on Thursday. The company reported its consolidated revenue at ₹6,602 crore for the year ended 31 March 2018, up 4.9% from ₹6,294.84 crore the previous year.