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RETAIL REFRIGERATOR BUSINESS: A DRAIN ON RESOURCES Part of unitary cooling business accounted for maximum loss.

mum loss. After restructuring, Voltas retained its manufacturing unit at Hyderabad In 2000, Voltas signed a contract with LG Also manufactured refrigerators for Samsung and Haier In 2004 contracts ended with Samsung and LG and they were not renewed as these companies had set up their own units in India Voltas could not enter the retail refrigerator market with Voltas brand because of its noncompete agreement with Electrolux Sub brands were to be introduced like Teenie Weenie(55l refrigerator), Xcel(premium refrigerator in 175.190,220and 250l) In 2005 the closure of Hyderabad unit was announced because of lack of growth, over capacity and intense competition In 2006 it announced plans to produce commercial refrigerators at its new plant in Uttaranchal

OUTLOOK In 2006 VOLTAS unitary business aimed of crossing the ten billion mark by 2008 Rising income level and cheap consumer credit fuelled the demand for ACs With amendment to the Agriculture Produce Marketing Committee (APMC) Act means that the farmer has complete freedom to sell his produce anywhere so this helped companies to develop cold chains in India Construction business in middle east continued to aid growth of Electromechanical business Future growth prospects were felt in water treatment

Voltas still existing?????? Voltas, though divided into three segments, has multiple business opportunities within each segment.

SEGMENT A - Electromechanical Projects & Services (EMPS) It undertakes high value engineering projects as an Engineering, Procurement and Construction (EPC) contractor in EM It has worked in several joint ventures and subsidiaries in the management and execution of projects and maintenance services Consortium projects have been pursued with entities in Europe US japan Korea. Many projects executed in Libya, Egypt, Botswana In 2003 Voltas international operations was the largest provider of EM services built for environment abroad with a presence in 26 countries. Also entered in the field of water supply and sewage treatment projects

They undertook a project at Salt Lake City in Kolkata in 2007. The project in Kolkata is a private-public partnership between the special purpose vehicle formed by Voltas and Jisco, a Tata Steel subsidiary, and Nabadiganta Industrial Township Authority. Voltas had earlier undertaken Rs 300 crore sewage treatment project in Singapore. The company is also looking at the plumbing business in large projects such as the Hyderabad International Airport being developed by GMR.

SEGMENT B - Engineering Products & Services (EPS) Materials Handling (MH) The Company has just announced the formation of a JV with Kion group for developing MH business Mining The operations and maintenance contract in Mozambique is stabilizing. The Company is also looking at opportunities in adjacent areas like coal washeries, mineral beneficiation etc. to cover a larger opportunity in the same manner as increase in service portfolio in Electro Mechanical business.

SEGMENT C - Unitary Cooling Products for Comfort and Commercial Use The unitary cooling segment (in its new form) comprises of 5 major products namely commercial ACs, water coolers, water dispensers, split AC and window ACs. The company has its Uttarakhand. Company has been able to maintain its No3 position in the AC market and no price wars have been witnessed owing to the summers and significant expansion in market demand across window as well as Split ACs

Other services Voltas represents nearly 40 leading manufacturers of textile, machinery, machine tools, and mining & construction equipment Voltas machine tools is one of Indias leading marketing and servicing orgs Its the sole marketing agent for Laxmi Machine Work which has a 60%market share in the textile spinning industry in India It imports weaving and knitting equipments and supplies in domestic markets It is the leading manufacturer of Forklift trucks at its plant in Thane It has expertise in importing indenting and distributing industrial speciality , pharmaceutical and perfumery chemicals, bulk drugs, vitamins premixes, commodity and engineering plastics and bulk commodities