RESEARCH

REPORT
Sachin Garg
GENERAL OVERVIEW:

Voltas Limited is an Indian company

specialising in air conditioning and
cooling technology.
The company is broadly structured into
projects and products business. The
projects business is divided into
Domestic Projects Group (DPG) and
International Operations Business Group
(IOBG). Meanwhile, the products
business is classified into Unitary
Products Business Group (UPBG), Mining & Construction Equipment
Division (MCED), and Textile Machinery Division. (TMD). The Unitary
Products business group manufacture products in categories including
air conditioners, air coolers, commercial refrigerators, water coolers and
water dispensers. Voltas is the largest air-conditioning brand in India.
Voltas produced India's first window air conditioner with DC-inverter-
based variable-speed motors. Voltas also has a large network of repair
centres. The firm is also a major producer of evaporative coolers, which
are widely used for comfort cooling in arid and semi-arid climates.
Voltas has also entered into a joint venture with Turkey-based Ardutch
(a subsidiary of Arçelik, part of the Koç Group making the Beko brand of
home appliances). It began producing refrigerators, washing machines
and kitchen appliances under the name of Voltas Beko.
Voltas won the first prize in the category ‘Manufacturers of BEE Star
Labeled Appliances (Air Conditioner)’, as part of the National Energy
Conservation Awards 2015. The company had previously won the same
award in December 2013.
It is rapidly growing company which is acquiring different companies
globally to expand its operations.
MANAGEMENT OF THE
COMPANY:
Board Of Directors
NAME DESIGNATION

MR.NOEL N TATA CHAIRMAN

MR.ANIL GEORGE DEPUTY MANAGING DIRECTOR

MR.NANI JAVERI DIRECTOR

MR.V DESHPANDE DIRECTOR

MR.ARUN KUMAR ADHIKARI DIRECTOR

MR.HEMANT BHARGAVA DIRECTOR

MR.D SARANGI DIRECTOR

MR.BAHRAM N VAKIL DIRECTOR

MS.ANJALI BANSAL DIRECTOR

MR.PRADEEP BAKSHI MANAGING DIRECTOR

SWOT ANALYSIS:
STRENGTH:
STRONG BRAND RECOGNITION –

Voltas products have strong brand recognition in the Misc. Capital

Goods industry. This has enabled the company to charge a premium
compare to its competitors in Misc. Capital Goods industry.
WIDE GEOGRAPHIC PRESENCE

Voltas has extensive dealer network and associates network that not
only help in delivering efficient services to the customers but also help in
managing competitive challenges in Misc. Capital Goods industry.

DIVERSE REVENUE MODELS –

Over the years Voltas has ventured into various businesses outside the
Capital Goods sector. This has enabled the company do develop a
diversified revenue stream beyond Capital Goods sector and Misc.
Capital Goods segment.

WEAKNESSES
BUSINESS MODEL
Business model of Voltas can be easily imitated by the competitors in
the industry name industry. To overcome these challenges
companyname needs to build a platform model that can integrate
suppliers, vendors and end users.

DECLINING MARKET SHARE

Declining market share of Voltas with increasing revenues - the Misc.
Capital Goods industry is growing faster than the company. In such a
scenario Voltas has to carefully analyze the various trends within the
Capital Goods sector and figure out what it needs to do to drive future
growth.
EXTRA COST OF BUILDING AND
LOGISTIC
Internet and Artificial Intelligence has significantly altered the business model in the
Capital Goods industry and given the decreasing significance of the dealer network
Voltas has to build a new robust supply chain network. That can be extremely
expensive.

OPPORTUNITIES

- LOWER INFLATION RATE–

The low inflation rate bring more stability in the market, enable credit at lower interest
rate to the customers of Voltas. This will increase the consumption of Voltas
products.

- OPPORTUNITIES IN ONLINE SPACE

Increasing adoption of online services by customers will also enable
Voltas to provide new offerings to the customers in Misc. Capital Goods
industry.

RAPID EXPANSION OF ECONOMY

As the US economy is improving faster than any other developed economy, it will
provide Voltas an opportunity to expand into the US market. Voltas already have
know-how to operate into the competitive US market.

- LOCAL COLLABAORATION
- Tie-up with local players can also provide opportunities of growth for the Voltas in
international markets. The local players have local expertise while Voltas can bring
global processes and execution expertise on table.

THEARTS

COMPETITIVE PRESSURES
As the new product launch cycles are reducing in the Capital Goods industry. It has
put additional competitive pressures on players such as Voltas. Given the large
customer base, Voltas can't respond quickly to the needs of the niche markets that
disruptors are focusing on.

GROWING TECHNOLOGICAL EXPERTISE

Growing technological expertise of local players in the export market - One of the
biggest threat of tie-up with the local players in the export market for Voltas is threat
of losing IPR. The intellectual property rights framework is not very strong in
emerging markets especially in China.
TRADE RELATION BETWEEN US AND
CHINA
Trade relation between US and China can affect Voltas growth plans - This can lead
to full scale trade war which can hamper the potential of Voltas to expand operations
in China.

CONCLUSION
Voltas limited is a company with diversified operations specially in air conditioner and
conditioning technology and also it takes variety of projects. Voltas ltd. Has high
turnover of around 6693.19 crore turnover in March’19 which indicates its growth.
But along with this Voltas ltd. Has to also focus on the threats coming its way and
has to grab all the opportunities coming its way to be at the top spot in its market
segment.