Voltas to raise AC prices from mid-February

Air-conditioning maker Voltas Ltd is looking at a 2-3 per cent increase in product prices mid-February onwards. Excise duty roll-back and increase in input costs have led to the decision.

According to Pradeep Bakshi, President & Chief Operating Officer, Voltas, input costs have gone up by 2-3 per cent. Excise duty roll-back is to the tune of 2 per cent.

“By mid-February, we will be rolling out new products across our products range that includes air conditioners. There will be a 2 to 3 per cent hike,” he said. Voltas — the market leader in home ACs — competes with LG and Samsung in the category. It claims to have a market share of 22 per cent.

The unitary products division that include room ACs, water dispensers and commercial refrigeration products, contribute around 40 per cent of Voltas’ consolidated turnover. Last fiscal, it stood at ₹2,052 crore out of a consolidated turnover of ₹5200 crore.

According to Bakshi, Voltas is also exploring the possibility of venturing into new categories in the consumer durables space. By December this year, a call is likely to be taken.

“Studies are on. But we cannot peg a time or name any category. By the end of this year, we might have some idea about extending the brand,” he further added. Focus will also be on consolidating the company’s presence in Middle East nations — Dubai, Qatar, Bahrain and Oman — neighbouring countries like Sri Lanka and Nepal and in African markets.

The idea, Bakshi said, is to increase the AC sales to 4-5 per cent of its turnover over the next two to three-years. Currently, exports account for 2 per cent of its sales.

Also on cards is the addition of a new line at its AC-manufacturing facility at Pantnagar in Uttarakhand.

Of the 10,00,000 AC units sold, around 7,00,000 are manufactured from the existing lines at Pantnagar.

The remaining 3,00,000 are outsourced.

The new line will primarily focus on producing eco-friendly refrigerants and greener gas for its AC-units.

“We are hopeful of the new line becoming operational in the next six months,” he said.