Voltas, in partnership with Arcelik, a Turkish company, plans to invest Rs. 1000 crore to set up its home appliances plant in Gujarat
Tata group company, Voltas has launched Voltas Beko, its home appliances brand. The firm, along with its Turkish partner Arcelik, has started the Voltbek Home Appliances Pvt Ltd (Voltbek) and with this, it has forayed into the home appliances market.
Voltas Beko has a range of home appliances, which include refrigerators, washing machines, microwaves, and dishwashers.
The two companies, reportedly, has planned to invest Rs 1,000 crore in the next four-five years to set up a home appliances plant in Gujarat. The investment includes the marketing activities as well. Pradeep Bakshi, Voltas Managing Director & CEO, said that the companies’ aim was to cover the manufacturing, sales and marketing of the products in the next 4 to 5 years.
He added that they have purchased 60 acres of land in Sanand near Ahmedabad to get the manufacturing rolling. The products are set to be in the market by the second quarter of 2019. Its partner Arcelik would provide the major components for the manufacturing of the products and gradually it would shift to raise its localisation ratio.
Focus on home appliances market
Voltas plans to get around10 per cent market share and a revenue generation of Rs 10,000 crore by 2025 in the home appliances segment. It has planned for expansion of its dealership network with a 360-degree approach, including the modern trade outlets, multi-brand outlets, e-commerce and many more.
The initial target has been set at adding 10000 outlets in the next two years. Voltas itself would have an additional 500 brand outlets in two years, which is expected to be raised to over a thousand in the next three-four years.
Voltas currently has around 100 exclusive brand outlets and around 70 per cent of its dealers selling its range of cooling products also deal in other product categories. The CEO of the brand believes that the home appliances would be “Value for money” and would cater to all kind of segments in metro and tier II & III cities.
Besides India, the joint venture’s initial focus is India, but it has plans to explore neighbouring Asian and African markets. As per the industry reports, the consumer durables market in India is slated to grow at 10-12 per cent per annum.