By

Tathagata Roy
IBS Mumbai
 Voltas – A part of TATA Group
 It was established in 1954 in Mumbai as a JV between
M/s Volkart Brothers and TATA Sons Ltd.
 1956 – The company went public and Volkart brothers
sold their stake in the company.
 1961- Voltas marketed imported products.
 1963 – first factory was established to manufacture
ACs and refrigeration equipment.
 Later on many plants were set up to manufacture
compressors, condensers, chillers, ancillaries,
refrigerators etc.
 Over the years Voltas tied up with US based Dunham
Bush & Standard refrigeration company.

 To secure access to new technologies in air

conditioning and refrigeration market.

 By 1990 Voltas diversified extensively in industries like

food and beverages, forklift trucks, chemicals,
pesticides, engineering services, etc.

 In 1996-97 the market shrunk by 9% (refrigerators)

and it was a severe blow to Voltas.
 In 1996-97 company recorded it’s first ever loss of 170
million and also failed to pay dividend.
 The price of stock crashed from Rs 225 to Rs 21.
 So in 1997 MD Munshi was replaced by Nawshir
Khurody.
 A huge restructuring process was followed which
involved all the businesses of Voltas and it’s finances
and human resources.
 It was decided that the company would focus on its
air conditioning and engineering businesses.
 This exercise finally helped Voltas improve it’s
profitability.
 One core management team started to analyze the
viability of each business.

 Incompetent businesses to be sold

 Air conditioning and engineering were two profit

making businesses.

 Idle assets were either leased or were sold.

 In 2000 four refrigeration manufacturing units were
sold to Electrolux.

 Realized around 4.1 billion from sales of its

businesses.

 Voltas grouped its remaining businesses into 4

segments.

 To reduce cost Voltas started to reduce its workforce.

 Encouraged new talents and ideas.

 1996-97
-170 million

1998-99
-119 million

2000
+ 69 million
 DIVIDEND OF 12%

Aim to increase operating margin

 Started looking for new profit making

businesses.
 THE
THE UNITARY
ELECTROMECHANIC
COOLING
AL
BUSINESS
BUSINESS
 Very successful working internationally also
 Voltas India Limited used to produce these
products.
 In 2001 VIL merged with Voltas.
 Opened offices in many other countries.
 Taking projects in India as well
 40% share in Indian CAC market
 Market leader in CAC market – Blue Star
 MARKET LEADERWITH 40%
MARKET SHARE

MAJOR PLAYERS – BLUE STAR,

CARRIER

MANUFACTURED REFRIGERATOR
UNDER COLDCEL NAME
 Institutional Sales Mapping

 Had to do a survey regarding the usage of air

conditioners of various companies in Mumbai

 Visited almost 350 companies for the survey and took

a feedback

 The data obtained was then grouped and analyzed.

 Pie charts were constructed to obtain and deduce the

result.
 Research methodology is considered the nerve of the
project.
 Very important to come to a final deduction.

 Research Design.

 Data Collection Methods

Primary data
1. Sampling
2. Research Instruments
3. Secondary Data
4. Data Analysis and Interpretation
a. Questionnaire
b. Pie Charts
 Not willing to share information with just anybody and
everybody.

 Biased information.

 Suspicion.

 Duration of my project.

 Convincing people that it is just a study and nothing

else.
Hospitality --- 20%
Hospitals --- 16%
 AWARENESS
0%

4% 4%
11%
Voltas
1%
39% LG
4%
Samsung
Hitachi
12%
Blue Star
Videocon
OG
25%
Carrier
Mitsubishi
 USAGE
0%

6%

28%

0-25
26-75
66%
76-150
Above 150
 BRAND USAGE

26%

41%

LG

7%
Samsung
Voltas
Hitachi
18% Others
8%
 YEARLY PURCHASE
0%
0%
0%

17%

0-50
51-100
101-200
201-300
83%
Above 300
 PURCHASE CONSIDERATION

4%
5% 4% 5% Samsung
5%
LG
33%
Videocon
23%
Voltas
Hitachi

2%
Blue Star
19% Carrier
OG
Mitsubishi
 EXPERIENCE

3% 3% 4%
2% 9% 7% Videocon
Samsung
20%
Hitachi
Voltas
32% LG
Blue Star
20%
OG
Carrier
Mitsubishi
 LG

7%

14%

48%
LG-Alto
LG-Pajero
LG-City
31%
LG-Qualis
 SAMSUNG

11%
19%

20%
Samsung-Alto
Samsung-Pajero
Samsung City
50% Samsung-Qualis
 VOLTAS

14%

11%

51%
Voltas-Alto
Voltas-Pajero
Voltas-City
24% Voltas-Qualis
 HITACHI

25% 22%

Hitachi-Alto
14%
Hitachi-Pajero
Hitachi-City
Hitachi-Qualis
39%
 LG

17%

36%
6%

LG-Lion
LG-White Elephant
LG-Cheetah
41%
LG-Monkey
 SAMSUNG

17%
33%

Samsung-Lion
20%
Samsung-White Elephant
Samsung-Cheetah
Samsung-Monkey
30%
 VOLTAS

8% 16%
10%

Voltas-Lion
Voltas-White Elephant
Voltas-Cheetah
Voltas-Monkey
66%
 HITACHI

20%

51%
Hitachi-Lion
20% Hitachi-White Elephant
Hitachi-Cheetah
9% Hitachi-Monkey
 MODE OF PURCHASE

0%

4%

31%

Tendering
Direct Purchase
65%
Purchase from the Dealers
Others
 BRANCHES

1%
3% 5%
8%

0-15
16-20
21-35
35-50
83%
Above 50
 AC industry is here to stay.

 Improve quality with innovative design.

 Cost reduction and high quality service are not the only
criteria.

 Brand building and promotion of the brand.

 Advertising and post sales service is low as compared to it’s

potential.

 Voltas needs to tackle not only the direct forms of

competition but also indirect competition.
 Corporate exposure.

 Enhance our marketing and selling skills.

 Meet top level Executives.

 Realization of work life culture.

 A concerted effort to promote Voltas products
through advertising & branding should be launched.
 Need highly focused marketing strategies to
provide the target segments with compelling
customer value propositions.
 Trust relationships with customers should be
improved.
 The company must be ready to incur the high
customer acquisition costs required for brand
marketing.
 Company need to offer low cost service trials to
early adopters of AC technologies who maintain
opinion leadership within their social communities.
 There is no substitute for quality.

 The company must be aware that the awareness of

the product and services is like half the battle won.

 They need more quality innovative and competitive

price structure products and services.

 Allocation of funds to marketing should be increased

in order to make more headway into the market
among the competitors.
THANK YOU