Download - Voltas - India
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VISION
yTo achieve over Rs 1600 Crores turnover by
2010-11.yBe EVA-Positive.
yBe a Profitable Air Conditioner brand.
yBe a market leader in Water Coolers &Commercial Refrigeration products.
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MISSION & VALUES
yTo be a passionately Customer focused
Organization providing innovative products
and services and exceeding all stakeholders
expectations.
yValues:
yPassionate customer focus.
yAgility
y Innovative cost consciousness.
yDisciplined teamwork.
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INNOVATIVE FIRSTS
y Manufactured the first ever room air conditioner in 1954.
y Set up the first integrated plant in 1969.
y Introduced the first innovative split air conditioner in 1984.
y
Introduced the tall and elegant slim line air conditioner in1993.
y Introduced micro-processor based packaged unit in 1998.
y First to introduce water dispensers with mini fridge.
y Launched the 55 litre refrigerator.y Among the first to launch sub 1.0 Ton ACs.
y Introduced Energy Efficient Air-Conditioners in 2007.
y First to introduce corner split AC in 2008.
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INTRODUCTION
ySet up in 1954 as a joint venture b/w M/s
Volkart Brothers & Tata Sons Ltd.y In 1956 the co. went public.
yTill 1961 Voltas acted as an Indenting agent.
y In 1963 first factory was setup atChinchpokli.
y In 1964 another plant was setup at Thane.
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CONTD...
yExtension in range of products b/w 1964 to
1977.
y In 1978 VIL, a wholly subsidiary of Voltas was
setup.
ySetup of another unit at Warora, near Nagpur.
yTie Ups with Dunham Bush Inc., and Standard
Refrigeration co., USA & Hitachi, Japan.
yExtensive diversification by 1990s.
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DIVERSIFICATION FIELDS
Food &Beverages
For lift
Tr c s
Chemicals&
Pesticides
Engineering Services
Refrigeration
AirConditione
r
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CONTD...
yThe acquisition of the loss making HyderabadAllwyn Ltd.
yRising expectations & falling demand during1990s.
yVoltas suffered first ever loss of Rs. 170Million in 1996-97.
yResignation ofMr. V.H. Munshi & takeover byMr. Nawshir Khurody asMD.
yRestructuring, Turnaround & The Big Bang.
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RESTRUCTURING
y Formation of Core Team
y Sold out After Analysis (Market Size, Growth Potential ,Strength
of competition )
y Core Competencies (Only A/C)
y Cash Flow Requirement From real estate
y Sold Out:
y Refrigerator BU and Allwyn Brand Sold to Electrolux
y Agro Chemical Unit to Rallis India
y Switchgear, Perfect moulds, Granites
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CONTD...
y International O/p
y Air Conditioning
y Refrigeration
y Unitary Cooling product
y Employee Cost
y Shift in offices
y Future Avenues
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INTERNATIONAL OPERATION
(ELECTROMECHANICAL)
y Target: Mechanical Work, Heating and ventilation and cooling,
Public health System , Firefighting, Security, Specialized Lighting,
M
edical Gases, Integrated Building management System,Communication
y Formation of JV for NewMarkets
y 2001 @ VILMerged with Voltas
y Selection of project
y Queen Mary II ,The Bahrain International Airport, Abu Dhabi Mall
in UAE
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PRODUCT LINE
yRevamped entire Product line
y Joint Venture with FEDDERS
INTERNATIONAL.
Universal Comfort Products Private Limited
yManufacturing facility at Dadra
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BENEFITS FROM FEDDERS
yExpertise inManufacturing, Product
development and Design.
yR&D from US and Singapore.
yAccess to Global Supplier Network
yM
ade VoltasLow
est-co
st manufa
ctu
re
rs
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VoltasVertis
Voltas Vectra&
Voltas
Verdant
Voltas Vertis0.6 ton
Voltas Vertis
Gold &Deluxe
RETAIL ACMARKET
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LINK UP WITH UNIFLAIR
y Italian AC major.
ySpecialized in design, production & air cooling
solutions
yDistribute and service Uniflair products in
India.
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INSTITUTIONAL ACMARKET
yTelecom and Banking segments
yVenture: Corporate Segment
yVisionaire: Government Segment
ySensicool: Telecom, IT, Pharma and Banking
Segment
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BRAND BUILDING
y It was Staidand Outdated
yRs.500 million
Year 2001 2002 2003 2004 2005 2006
Ad Spend 80 200 180 170 170 200
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ADVERTISING STRATEGIES
yTargeted Young People
y2003
OutdoorMediaSpecial Voltas Carnival Offers
Tie ups with HSBC & Westside
AC with IQ
y2004
Ab Har Koi Le Sake AC KaMaza
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CHANNEL & SERVICE
y 2001
Retail Network with Exclusive Dealers
y2002-03
Spent 10Million on Training Channel Partners
Set Up Voltas Domes
Relationships with Architects & Interior Designers
Set up Call Centers
y CRYSTAL CARE SERVICE
y Several Products Were Introduce inMiddle East
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CONTD...
y Improve Performance in
Sales & Distribution
Accounting
Customer Service
y 2004
1400Multi-Brand Outlets
450 sales& service dealers
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RISE TO THE TOP
y Big Bang strategy was a success
(* E Expected )
Year 2001 2002 2003 2004 2005 2006
Market Share 6.8% 9.7% 11% 12% 16% 20% (E)*
Rank 7 2 2 2 2 2
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y In 2005 Voltas continued to make inroads into the
retail AC market .
y InMarch 2006, Voltas launched Vertis Premium
y In 2006-2007 company aimed to increase its
market share and took separate marketing initiative
y Aggressive ad campaign -
India Ka Dil,India Ka AC, Korea Ka Nahi
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MARKET SHARE OF ALL THE
PLAYERS IN THE INDUSTRY
Market Share (2005)
Voltas (16%)
LG(33%)
Samsung(13%)
Others(38%)
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yNew manufacturing plant launched in
Uttaranchal in 2006
yJoint venture facility at Dadra was shiftedat new plant i.e. AC unit.
yReasons behind this move
- Cost saving of 5-6%- Increased production capacity
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y Biggest competitors LG
and Samsung had- Largest distribution
network for consumer
durables
- Wide product range
- Efforts to improve rural
distribution market
y Entry of new players like
Godrej, Koryo etc.
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RETAIL REFRIGERATOR BUSINESS A DRAIN ON
RESOURCES
y This business accounted for most of the divisions
losses
y In 2000 Voltas signed an agreement with LG to
supply 1.2 million refrigerators over the next three
years.
y Voltas also manufactured refrigerators for
Samsung, Haier and also supplied refrigerator partsto local manufactures
y End of the contract with LG and Samsung in 2004
yNon compete agreement with Electrolux.
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y Voltas planned to re-enter
refrigerator market in 2004 and
even launched some models ofrefrigerator
- Coldcel
- Teenie Weenie- Xcel
y In 2005 Voltas dropped its plan
to enter the refrigerator market
and closed some of its unitsy In 2006, it announced plans to
produce commercial
refrigeration segment.
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VOLTAS ON EXPANSION MODE
y As of early 2006 Voltas was expecting to grow in
all its businesses.
y Research centre development
y Voltas was expecting increase in the demand for
commercial refrigerators with certain amendments
to APMC act
y Construction business in middle encouraged
Voltass electromechanical business.
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VOLTAS ENTRY INTO WATER
TREATMENT
yVoltas planned to acquire new
technology- Water treatment
- Purifying
- Recycling- Desalination
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ANALYSIS
y Threat of rivalry in consumer electronic market is
very high
y
Need to keep track of competitors movey Intense Price rivalry
y Voltas needs to focus on its AC business
yNeed to establish innovative service centers
catering to retail AC segment
y Growth comes with uniqueness and Voltas needs to
find that