Leading air-conditioner maker, Voltas Ltd has signed a binding term sheet with Atomberg Innovation Ltd, to establish a joint venture to manufacture high efficiency compressors used in room air-conditioners besides parts related to compressors. The company recorded 45 per cent volume growth in the room air-conditioner segment in the June quarter.
Mukundan Menon, Managing Director, Voltas Ltd told , “ We are in the initial stages and details regarding capex and other aspects are in the process of being worked out. Under this joint venture, plans are to set up a plant in Chennai to manufacture compressors. This will be located right next to our existing air-conditioner plant.”
“The proposed capacity of the plant will be about 2.8 million units. Voltas will be an anchor customer of the joint venture. At the same time, the JV will also have the flexibility to supply air-conditioner compressors to other players,” he added.
Menon added that the compressor is the heart of an air- conditioner and is central to its performance, energy efficiency and reliability and this move enables the company to strengthen its air-conditoners supply chain.
This development also comes at a time when the Indian government has been pushing for indigenisation of air-conditioner manufacturing supply chain through various policy measures including quality control orders.
Mukundan Menon, Managing Director, Voltas Ltd
“A secure supply chain for compressors will enable us to do more efficient planning. When one has an uncertain supply chain one starts buying in advance to ensure there are adequate stocks of compressors when the summer picks up and this leads to a longer supply chain planning of about 90 day. So the joint venture will enable us to have a more secure and resilient supply chain offering more flexibility,” Menon explained.
The company said that the transaction remains subject to satisfactory due diligence, product validation, definitive agreements and necessary approvals.
Talking about the company’s performance in the Jne quarter, he said, “ Room air-conditioners volumes grew 45 per cent year-on-year and we significantly outperformed the industry growth rate. We achieved a 17.3 per cent secondary market share for FY27 till June 2026 and progressively strengthened our competitive position through the quarter.”
On the outlook for the business of Voltbek Home Appliances, the JV company of Voltas and Turkey’s Beko, Menon said, “ Q2 and Q3 are significant for the appliance segment and we are focusing on scaling up our presence in categories including refrigerators, washing machines, microwaves and dishwasher categories. We have introduced new products in the premium segment and have also added new manufacturing lines in our Sanand plant to increase the manufacturing capacity. We are witnessing significant growth in this segment.”