Air-conditioner major Voltas may have to go in for capacity expansion by early next year — either by setting up new lines in the existing facility or a green field unit— as its current production facility is running to its capacity. “We are yet to take a concrete decision on this,” said Pradeep Bakshi, President and Chief Operating Officer of Voltas Ltd.

With more than seven lakh units sold last year, the market leader commands over 20 per cent share of the 3.5-million-unit room air-conditioner market in the country.

For the current year, it has launched 68 new models of split air-conditioner, including five models in the ‘inverter’ range. Besides, it is also in the process of expanding its network of channel partners and retail footprint across the country. “With all this, we hope to sell more than a million units in 2014,” Bakshi said. Till the company finalises its plans on expansion, it may opt to outsource some of its products as a temporary arrangement.

The company, part of the Tata group, pioneered the concept of energy-efficiency in air-conditioners. It is the market leader in 5-star labelled air-conditioner segment too. “Over 30 per cent of our total AC business comes from the 5-star category, while the industry average is 15 per cent,” he said. According to Bakshi, Voltas will focus on its inverter models this year. The company has made a new television commercial created by Ogilvy & Mather to promote the new range, and Rs 60 crore has been set aside for advertising.

In addition to its unitary products business that includes room air-conditioners, water dispensers and commercial refrigeration products, Voltas has another division that offers engineering solutions to a wide spectrum of industries such as heating, ventilation, electro-mechanical projects, textile machinery, mining and construction equipment, water management and building management systems. It recently bagged the mechanical, electrical and plumbing contract from Chennai Metro Rail Ltd.

>ravikumar.r@thehindu.co.in

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