Voltas Ltd has announced its arrival into the consumer appliances market in a joint venture with Turkey-based Arçelik. The company will integrate the market by selling household appliances such as washing machines, refrigerators, microwaves and dishwashers under a new brand Voltas Beko.
According to its managing director and chief executive officer Pradeep Bakshi, the Tata Group company aims to generate ?10,000 crore of revenue by 2025. The company has restricted presence to air conditioners and air coolers in the consumer products segment but has a significant market share in the commercial segment.
Bakshi said, “Over the next five years, we’ll invest around ?1,000 crore in manufacturing, marketing and distribution. Both the companies will invest equally.” He further added, “Arçelik is the technology provider, and all products will be sold under the new brand Voltas Beko targeted to mass and mass premium segments. Initially, we’ll feed the domestic market, and would look at export opportunities for top-end products in the future.”
Hakal Bulgurlu, CEO of Arçelik said, “We have been looking at India as a potential market for a long time. With its vast population and significant economic growth prospects, India offers huge potential to support our continued plans for global expansion.”
The new company, Voltbek Home Appliances Pvt. Ltd (Voltbek), is an equal partnership joint venture that will launch more than 100 products over the next 3 months. The company will manufacture all its products at its facility at Sanand, Gujarat.