Voltas is seeking to invest Rs 1,000 crores in manufacturing expansion.
This expansion includes a highly equipped manufacturing plant near Chennai of over Rs 500 crores and additionally, Rs 500 crores of compressor plant is yet to receive government clearance which is being partnered by China’s Highly International.
The clear reason for accumulating such high-value funding is to upscale the performance as well as to increase the brand value of the Tata-owned home appliance brand (Voltas).
“The planned compressor plant in a joint venture with Highly under the production-linked incentive scheme is stuck in limbo as the Press Note 3 and PLI approvals are pending,” Bakshi said.
Voltas requested a government permit under the Press Note 3 regulations a year ago. Press release 3, made in 2020, states that companies based in countries that share borders with India can only invest in India after obtaining government approval.
Voltas has received 150 acres from the state government in order to set up the compressor plant in Chennai. The project costs Rs 500 crores AC manufacturing facility and additionally Rs 500 crores with the Highly.
“Voltas will also invest ₹200 crores for the expansion of commercial refrigeration and AC at its factory in Baroda and ₹100 crores for room AC at Pantnagar. An additional ₹200 crore is going to be pumped into the home appliance plant at Sanand, near Ahmedabad.” Officials declared.
The coverage of Voltas in the Indian market has been around 23% for more than ten years. The second company competing is LG.
Voltas has specialized in launching household electronics including washing machines, fridges, dishwashers, microwaves, and ovens in partnership with Arcelik Group.
