'I'm Chevrolet.

I'm India''

Introduction
Voltas a part of TATA Group It was established in 1954 in Bombay as a JV between M/s Volkart brothers & TATA Sons Ltd. 1956- The company went public & Volkart brothers sold their stake in the company. 1961- Voltas marketed imported products. 1963- First factory was established to manufacture ACs & refrigeration equipment. Later on many plants were set up to manufacture compressors, condensers, chillers, ancillaries, refrigerators etc.

Business Organization

Voltas is Into

American Origin

 In 1996-97 company recorded its 1st ever loss of 170 million & also failed to pay dividend.

The price of stock crashed from Rs.225 - Rs.21.

Thus, in 1997 M D Munshi was replaced by Nawshir Khurody. A huge restructuring process was followed which involved all the businesses of Voltas, its finances & human resources It was decided that the company would focus on its air-conditioning

& engineering businesses only.

This exercise finally helped Voltas improve its profitability.

The Restructuring
One core management team started to analyze the viability of each business Incompetent business identified to be sold Air conditioning and Engineering were two profit making businesses Idle assets were either leased or were sold off

Revenue of Voltas
1996-97 -170 million

1998-99
-119 million

2000 +69 million

Change In Scenario
Between 2001- 2004 Industry grew by 27% Excise duty on AC reduced from 110% to 60% Improved Indian economic condition Many new entries in retail AC market By 2001 voltas came down to 7th position with 6.8% market share

The Big Bang Strategy

Brand Building New Products

Channel & Service

Success

What was Big Bang?

A new business strategy To reincarnate every facet of Air Conditioning business (product, channel, systems, service, costs and brand) To improve margins To stand against competition from newly entered MNCs in AC market

New Products

Unable to address own product drawbacks

JV with Fedder , launched Vertis, Vectra, Verdant and sub ton AC

Targeted telecom and banking sector with launch of Venture, Visionaire later tie up with Uniflair

Brand Building

Rs 500 million brand building exercise in 2002

Advertised extensively through outdoor media. Off season promotions and tie-ups place in 2003

Switch of ad agency from O&M to Euro RSCG. Campaign for common man AC Vertis in 2004

Channel & Service

Identified the non performer distributors

Signed MoU with dealers, invested in channel network and quality enhancement in 2002-03. voltas domes introduced

Improvement in service network and evolution of call centers.

RISE TO THE TOP

 The Big Bang strategy was very successful. The company ranking in the retail AC market went up from No.7 to No.2 with in a year. Voltas launched a new range of AC for middle income households. Voltas launched separate marketing initiative for each state in India. Voltas built a new manufacturing plant in Uttaranchal at a investment of 1.2 million

Market Share of Voltas AC

Year Market Share Rank 2001 6.8% 7 2002 9.7% 2 2003 11% 2 2004 12% 2 2005 16% 2 2006 20% 2

Similarly Voltas retained its position till 2012 when it became the market leader with a market share of 18%. Voltas had a new thrust on marketing by launching a new aggressive ad campaign with a tag line- India ka dil, India ka AC, Korea ka nahin.

SWOT Analysis
STRENGTHS:
Design and manufacture of industrial equipment.
Management and execution of air conditioning . Public work projects. Sourcing, installation and servicing of technology-based systems. Voltas represents a number of global technology leaders, serving

diverse industrial sectors and applications.

WEAKNESS:
Not targeting the mass market

OPPORTUNITIES:
The Indian Mass Market. The high end value driven proposition helps increase the Market Share. VOLTAS is well known for it product differentiation.

THREATS:
Indian Mass Market may be captured by a rival company, LG,
Videocon, Samsung etc. Due to increased price of inputs and continuous price erosion there is downtrend in the consumer durables market.