Voltas Ltd.: From Turnaround to the 'Big Bang'
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The Unitary Cooling Business
Voltas' other area of focus was the unitary cooling products business consisting of commercial refrigerator business, water cooling business, retail refrigerator business, and most importantly, the room air-conditioning (RAC) business.
Voltas had retained one refrigerator manufacturing unit, which continued to manufacture refrigerators for the retail market on contract basis...
The Big Bang Strategy
Rise To The Top?
Going by market shares, the 'Big Bang' strategy was a success. Within a year of its implementation, the company's ranking in the retail AC market leapfrogged from No.7 to No.2. Voltas' ranking in the water coolers market also rose from No. 3 to No.1 (Refer Table II for trends in the market share of Voltas). From 2001 up till 2005, the company was able to maintain its position in the market...
Retail Refrigerator Business:
The retail refrigerator business, a part of the unitary cooling business of Voltas, accounted for most of the division's losses. "In the Unitary Products segment, in the fourth quarter of last year, 2004-05, we had a loss of Rs. 37.4 mn because of the weak performance of the Hyderabad unit.
As of early 2006, Voltas was expecting to grow in all its businesses . Voltas' unitary cooling business division aimed to cross Rs. 10 billion in sales by 2008. Rising incomes and availability of cheap consumer credit was expected to fuel the demand for ACs in India. The low penetration of ACs indicated that there was immense potential for growth. Voltas was also planning to set up a research center for product development near its new manufacturing facility in Uttaranchal...
Exhibit I: Voltas Revenue Break-Up In Fy06
Exhibit II - Shareholding Pattern At Voltas
Exhibit III - Voltas Business Segments (2006)
Exhibit IV - Employee Rationalization
Exhibit V - Capital Employed At Voltas
Exhibit VI - More Information On Voltas' Business Segments
Exhibit VII - Growth Of Retail Ac Market
Exhibit VIII - Market Share Moving Away From Unorganized Players
Exhibit IX - The 'Acs With Iq' Ad
Exhibit X - Market Shares In The Indian Ac Market
Exhibit XI - 5 Year Financials Of Voltas
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