Voltas may enter compressor manufacturing, says Noel Tata
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Leading cooling products maker Voltas is evaluating entering into the manufacturing of compressors, its chairman Noel Tata said at the company's annual general meeting (AGM).
Noel Tata, who also announced to step down from the chairmanship of Voltas, said the company is evaluating foraying into compressor manufacturing in the future.
"At present, we do not manufacture compressors, but it is being reviewed by management, who may take a call in the near future," Tata said.
Earlier, the Tata group had tried to start local manufacturing of compressors, a critical component in the cooling business, in a JV with Chinese firms; however, it could not materialise due to regulatory issues.
In April 2023, it terminated the JV agreement with Highly International (Hong Kong) Ltd to manufacture compressors in India because it could not obtain the necessary government approvals. The proposed JV between the Tata Group firm and Highly International was subject to government clearance under Press Note No. 3(PN3).
Voltas, which has sold one million units of room air conditioners (RAC) in the first quarter of FY27, was exploring JV options with some Korean companies, according to reports.
Speaking about capital expenditure going forward, Tata said the company has largely completed its requirements after putting the country's largest AC production factory.
Tata said it plans to invest around Rs 200 crore during FY27, while stating that it has largely completed its requirements with the building of the country's largest AC manufacturing plant in the South.
Over the country's consumer durables industry, Tata said it is expected to emerge as one of the fastest-growing segments of the economy, supported by a large and expanding middle class, rising disposable incomes and deeper penetration into semi-urban and rural markets.
The sector also presents significant long-term potential, supported by structural shifts towards sustainability, digitisation and regional supply chain realignment, he said.
(Except for the headline, Fortune India has not edited the content of this PTI report.)