Voltas to Invest 1000 Cr. Another 200 Cr for AC Compressor JV with Highly
Voltas Ltd., a subsidiary of the Tata Group and a major manufacturer of home appliances and consumer electronics, will be investing about Rs. 1,000 crore towards capacity expansion.
Voltas-Highly JV to Develop Greenfield AC Compressor Plant near Chennai
In a stock filing dated 2nd May 2022, Voltas stated that it had formed a 40:60 Joint Venture (JV) with China-based Highly International, part of the Shanghai Highly (Group) Company Ltd. Voltas will own 40% of the JV.
This JV is to develop a greenfield air conditioner compressor plant with an investment of Rs. 500 crore near Chennai under the Production Linked Incentive (PLI) scheme for white goods, which was announced by the Government in 2020. Voltas has already been allotted 150 acre of land by the Tamil Nadu government where the JV’s compressor plant will be situated.
This plant will produce compressors not only for Voltas’ AC manufacturing operations, but will also be producing them for other brands and for export purposes.
Mr. Pradeep Bakshi, Managing Director, Voltas, said during an interview with The Economic Times that this plant is yet to receive government clearances. These clearances include those under Press Note 3.
Press Note 3 is a circular that was issued on 17th April 2020 by Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India. As per this circular, investments by companies based in countries that share land border with India need prior approval from the Government. Since Highly is based in China, which shares a land border with India, clearance under Press Note 3 is required for the Voltas-Highly compressor plant. Voltas applied for permission under Press Note 3 for this project one year ago.
Voltas to Invest in Greenfield AC Manufacturing Unit, Expand Existing Units
Voltas’ Rs. 500 Cr. Greenfield AC Manufacturing Unit to Come up in Chennai
Voltas will be investing Rs. 500 crore for setting up a new AC manufacturing unit near the planned compressor manufacturing unit of the Voltas-Highly JV. This unit will share the aforementioned 150 acre land with the JV’s compressor plant.
Apart from this, Voltas will be expanding production capacity at its existing manufacturing units.
Voltas to Expand its Operations at Existing Plants with Rs. 500 Cr. Investment
Voltas will be investing Rs. 500 crore to expand operations at its existing factories.
The company will invest Rs. 100 crore for increasing the production of room ACs in its facility at Pantnagar, Uttarakhand, and another Rs. 200 crore in its home appliances plant in Sanand, Gujarat. Additionally, Voltas will pump in Rs. 200 crore for the expansion of its AC manufacturing operations and commercial refrigeration operations at its factory in Baroda, Gujarat.
About Voltas Ltd.: Mumbai-headquartered Voltas Ltd. is a Tata Group company, and an Indian consumer electronics and home appliances major. It was established in 1954. As per India Brand Equity Foundation (IBEF), the company’s room AC segment accounts for 23.4% of the market share, making it the largest air conditioning company in India. For the financial year ended 31st March 2022, the company reported a revenue of Rs. 7,934.45 crore.