The joint venture between Tata-owned VoltasNSE -1.73 % and Turkey’s Koc Group entity Arçelik, Voltbek Home Appliances has plans to foray into overseas market with products either under its own brand Voltas Beko or act as a global production hub for Koc Group.
The JV, which has just launched 100 new models in the Indian market in categories like refrigerators, washing machines, microwave ovens and dishwashers, will make the global foray from its upcoming plant in Gujarat which will be operational from next year. The export focus will be mainly on entry-level appliances like direct cool refrigerators and semi-automatic washing machines.
Pradeep Bakshi, MD and CEO at Voltas, said commercial production in the Gujarat plant will start within second quarter of next fiscal year. “There are plans to export the products to Africa and Asian countries either under Voltas Beko range or through any of the Koc Group brands,” he said. The company will start production of direct cool and frost-free refrigerators and washing machines.
Bakshi said the joint venture will invest Rs 1,140 crore in next five years in marketing, sales and the plant. In the first year itself, the company will invest Rs 150 crore in marketing to build the Voltas Beko brand. “We are targeting Rs 10,000 crore revenue by 2025 and around 10% share of the domestic appliances market,” he said.
Voltas Beko is going to price its appliances in the domestic market at par with the Korean duo, LG and Samsung, who together controls over half of the Indian market. “We already have some 15,000 retailers under our distribution network which we intend to double in next two years,” said Bakshi.
The company has tied up with Future Supply Chain Solutions as its logistic partner. As part of this, the Future Group entity will act as an end-to-end logistics service provider to Voltbek, cater to the entire warehousing and transportation needs with an aim to improve lead time while optimizing supply chain costs.
As per industry report, the consumer durables market in India is slated to grow at 10-12% per annum. The white goods market is currently valued at Rs 43,000-crore. During the last ten years, the Indian major domestic appliances market grew by 9% surpassing the overall 3% growth of global white goods market.
Source: economictimes.indiatimes.com