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I _______, student of Master of Business Administration (MBA), M.P.Birla Institute of Management, Bangalore here by declares that this report study on organization study VOLTAS LIMITED is a record of independent work carried out by me, towards partial fulfillment of requirement for Master of Business Administration (MBA) course of Bangalore University at M.P.Birla Institute of Management. To the best of my knowledge this report has not formed the basis for the award of any other degree.

Place: Date:



Its my privilege in writing this acknowledgement to thank all those who gave their views and suggestions for helping in the completion of my internship at VOLTAS LIMITED from 25.06.09 to 30.07.09. I would like to take up this opportunity to convey my deep sense of gratitude to __________ my internal guide and Principal ___________ for providing an opportunity to do this project and internship. I ardently thank ___________, area sales manager for having devoted some of their precious time and for their guidance. I also thank them for the rich experience that I have derived by working on this project under their guidance. This project would not have been successful without the constant guidance and support of my institutional guide, _________. who took keen interest in my project to make it a beneficial exercise. I also extend my thanks to all staffs of the company. Last but not the least, my thanks to my beloved friends who have helped me a lot during the project for the successful completion.

Place: Date:

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The MBA course offered by the Bangalore University has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period ranging from 4 weeks to 6 weeks during the second semester. Indias premier air conditioning engineering service provider VOLTAS a Tata Enterprise, is a well established company. It is an Indian company which always maintained the highest international standards of excellence through quality, technology and innovation. The only Indian Company with complete core competence in all aspects of air conditioning. For 50 years, Voltas has contributed to the Indian industries modernization and growth. Voltas Core is its ability to provide the best in engineering and back up services. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe. Voltas captured the various facets of the Indian economy in sectors ranging from real estate (commercial and residential), retail, construction, infrastructure, mining etc. The company's past growth has been achieved without any equity dilution so growth is not dependent on the vagaries of market. For over a decade, Voltas has been bringing the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting the best of international technology to suit Indian needs, and crafting it to improve the quality of life as million of satisfied customers will agree. Report tells the success story of VOLTAS. Sustainability is at the center of Voltass strategy. The report consists of the study of the organization. It involves the Brief profile of the company, pre-establishment factors that prompted the establishment of the company, location matrix and milestones in the history of the company. Apart from this; a brief introduction has been given to the product mix and each departments of the company. The organization also implemented environment management systems and organization health & safety policy. Another part contains microscopic study made on success of Voltas commercial refrigeration. This part contains the introduction of the various products in refrigerator segment, market characteristics, strategies, factors for Voltas superiority etc.

Sl , 1 1.1 1.2 1.3 2 2.1 2.2 2.3 2.4 3 4 5 6 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 8 9 Pa-t I Profile of the company - Factors that prompted the establishment - Milestones in the history of the company - Location matrix Company Vision / Mission - social responsibility - Energy conservation - Quality policy - Ownership pattern Companys policies & product mix An overview of labor force Companys performance in recent years Organization structure Operational aspects of different functional departments - Human resource department. -Marketing department. -Finance & accounting department -Water management department -Mining & Construction Equipment Division -Machine Tools department -Materials Handling department SWOT analysis Suggestions &Recommendations Pa.e ,. 1 6 8 11 13 15 15 17 18 20 31 33 46 48

52 54 56 57 58 58 59 63


Sl no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

0a-t I I Introduction Product range Unbeatable technology Eco friendly Strategies Applications Clients R & D department Voltas superiority Key success factors Market characteristics Demand drivers Market shares Business concerns Recommendations and Suggestions Bibliography

Page no. 65 66 70 72 72 74 75 76 76 78 78 79 79 80 81 82



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Chapter-1 Company Profi e

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Voltas is India's largest supplier of engineering products and services for the textile machinery sector and is a major manufacturer of forklift trucks. It provides solutions in turnkey pumping projects for water, effluent and sewage treatment, and water pollution control. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe.

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Voltas Limited is an engineering, air conditioning and refrigeration company based in Mumbai, India. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, machine tools, mining and construction equipment, materials handling, water management, building management systems, indoor air quality and chemicals. The company has ISO 9001-2000 certification and has executed projects in the Middle East, Southeast Asia, Central Asia, Africa and Europe.

Voltas is a part of the Tata Group. The Chairman of Voltas is Ishaat Hussein. The managing director is A. Soni. Its shares are traded on the Bombay Stock Exchange under symbol 500575. Its 2008 sales were 40,70,25,00,000 rupees.

The Company was incorporated on 6th September, 1954 at Mumbai. . The Company was promoted in 1954 by M/s. Volkart Brothers and Tata Sons Pvt. Ltd., to take over the Engineering & Import Division of M/s. Volkart Brothers in India. Corporate Headquarters is at Voltas House, "A" Block, Dr. Babasaheb Ambedkar Road, Chinchpokli, Mumbai 400 033, Maharastra. The Company's manufacturing activities were originally carried on at its factory at Chinchpokli, Mumbai and covered air-conditioning and refrigeration equipment mining, electrical and agricultural equipment.

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The Company's distribution organization is divided into two main groups - `Engineering' and `Marketing'.

The marketing group consists of two main divisions, one dealing in drugs, pharmaceuticals and consumer products and the other in chemicals and vitamins. The Company deals in foreign as well as indigenous products, besides marketing its own products.

The Company manufactures sale and distribution of a variety of products in the engineering, chemical and pharmaceutical industries such as agricultural, earthmoving, air-conditioning and refrigeration, textile machinery, machine tools, electrical and mechanical equipments as well as chemicals and pharmaceuticals.

The Company set up in Thane, Mumbai an up-to-date factory to manufacture wide range of air-conditioning and refrigeration and a range of mining equipments for which the Company had entered into collaboration with leading manufacturers abroad. . Some of Voltas' collaborations are with:

Besseling, Netherland, for Controlled Atmosphere (CA) / Ultra - Low Oxygen (ULO) storage technology.

Bock - Germany, Refcomp - Italy and JE Hall - UK, for Semi - Hermetic compressor Costan of Italy, for Refrigerated Cabinet Display Units for hyper market engineered systems.

Dunham-Bush Incorporated (USA), for screw chillers Hitachi Limited, Japan, for vapor absorption machines MIDEA, China, for Variable Refrigerant flow Systems. Ruks Engineering, Canada, for ozone engineered systems Standard Refrigeration Company (USA), for direct expansion chillers Siemens Building Technologies (Asia-Pacific), for building management systems

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The company is also an Indian representative of a number of leading manufacturers worldwide. To name a few:

BT, Sweden Bruckener, Germany Erbatech, Germany Fanuc Ltd. , Japan Hercules - Aqualon Division, USA Huntsman Tioxide, UK Hyundai, Kore Kobelco, Japan Kluber, Germany LeTourneau Inc., Australia LMW, India Memminger, Germany Mitsubishi Heavy Industries, Japan Terex - BL-Pegson, UK Terex - Powerscreen, UK Terex - O&K, Germany Terrot , Germany Tornos , Switzerland

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Voltas's operations have been organized into three independent business-specific clusters. Each of these has its own facilities for market coverage and service to customers. 1. Electro-Mechanical Projects & Services Electrical, Mechanical, HVAC & Refrigeration Solutions Electrical, Mechanical & HVAC Solutions (International) Water Management & Treatment

2. Engineering products & Services Textile Machinery Mining & Construction Equipment Machine Tools Materials Handling Solutions

3. Unitary Cooling Products for Comfort & Commercial Use Cooling Appliances Commercial Refrigeration

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Voltas Ltd was formed in 1954, as a joint venture between Tata's and Volkart Brothers; it was already a century old in all but name. In fact, the alliance itself resulted from the need to preserve that legacy, to carry forward that capability under changed post-war postIndependence conditions. Since 1853, Volkart had been prominent in 'two-way' trade between India and the West. Broadly, raw materials and commodities were exported, while imports focused on machinery and engineering equipment from overseas manufacturers.

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Over the years, such technology-based products increasingly needed installation and support services. This evolved into Volkart's Engineering & Import business, which soon formed the bulk of their activities. Post-war and post-Independence realities called for drastic revisions. India's manufacturing capabilities had been jump-started by wartime conditions. Independent India too was intent on forcing the pace of indigenization, by restricting imports of engineering equipment (among others). Paradoxically, India's industrial and economic growth would require more and more such equipment. Volkart's installation and support services would be in great demand if the equipment could be sourced. Volkart and Tata's teamed up as Voltas Limited to tackle these challenges. It was the ideal combination: Volkart's engineering services and trading expertise, allied with Tata's historic standing as a major industrializing power which was aligned with the many new markets springing up in post-Independence India.


Voltas has received many prestigious awards like:

United Nations' Grand Award for Excellence in Public Service Worldwide, 1993-94. International Public Relations Associations' Golden Trophy for Excellence in Customer Service, 1994-95.

Mumbai Chamber of Commerce and Industry's Good Corporate Citizenship Award, 1995-96.

Export Excellence Award, as Star Performer received from Engineering Export Promotion Council (EEPC) India - Western Region, 2006-07.

MEP Middle East Awards 2008.

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1954 - The Company was incorporated on 6th September 1954


- The Company promoted Scottish Indian Machine Tools Ltd., in Collaboration with Scottish Machine Tool Corporation of Glasgow for the manufacture of machine tools.


- The Company concluded a collaboration agreement with Eaton Yale and Towns, U.S.A., for the manufacture of Yale fork-lift trucks.


- A new division, viz., the Agro-Industrial Products Division was added. The main operation of the division consisted of the sale and servicing of the tractors and implements made by the International Tractor Co. of India.


- With effect from 1st July, Tata-Merlin & Gerin Ltd. (TMG), and the National electrical Industries Ltd. (NEI), was amalgamated with the Company.


- The Company proposed to set up an electrical business unit at Pune. - The Air Pollution and Water Pollution project groups were amalgamated with the Electrical project group.


- The material handling business group successfully introduced up-to-date warehousing equipment to further enlarge its product range. - Air-conditioning and refrigeration business group received Government's approval for the technical collaboration agreement conveying large-sized efficient compressors.

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- With effect from 1st March, Volrho Ltd. was amalgamated with the Company as per the order of BIFR.


- The materials handling business group proposed to extend its scope of activities to turn-key materials handling systems for mass production in engineering industries.


- The performance of the industrial machinery division was adversely affected due to a lock-out at the Company's principal, Westerworks. - The Agro-Industrial Product Division successfully tested to international standards, the indigenously built 36 KV SF6 breaker at CESI Test Laboratory, Milan, Italy.


- The Company restructured its operations into product group I comprising refrigerators, pharmaceuticals and consumer products and beverages while product group I(A) include textile machinery. Product group II consisted of machine tools, materials handling facility, industrial machinery, airconditioning pumps and projects. Group III comprised of chemicals plant, chemicals division and agro-industrial products. - Air-conditioning and refrigeration business and agro-industrial products and pumps division suffered a setback due to prevailing recession in the market and non-availability of Government funds as well as disturbances from December.


- The cooling appliances business launched four new products viz., water coolers filled with purifiers ductable and slim-line 3 tone air-conditioners, ceiling mounted split in 1.5 and 3 tone capacities and 2 tone room split units. - The pharmaceutical and consumer products division was closed during the year and had also withdrawn from the beverages business.

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- HAL, a sick industrial company, was merged with Voltas and the amalgamation was approved by the Board for Industrial & Financial Reconstruction (BIFR) in 1994.


- Voltas gets Good corporate citizen award - The Company has introduced `Soft Look' models of refrigerator in165 L. & 200 L segments. Company is also launching a premium Frost Free Refrigerator in collaboration with Hitachi.


- A whole range of new products was launched both in the room air conditioning and split segments. The heavy equipment and packaged system division launched ozone-friendly centrifugals and superior quality energy efficient steam, fired vapor absorption machines with Hitachis `Para flow' technology. - Voltas, India's leading air-conditioning company has been chosen to supply, erect and commission high-tech climate air-conditioning system for India's first information technology park.


- Air International Ltd. is a joint venture between Voltas Ltd. and Air International Grmp, Australia.


- The Company has received a special award for completing the electro mechanical pumping project of Ahmadabad Municipal Corporation in 120 days. - The Company has introduced a voluntary retirement scheme called Early Separation Scheme 2000 (ESS) for its employees. - The Company has sold its wholly-owned subsidiary Voltas Foods & Beverages to a Mumbai-based company, and has roped in a multinational as strategic partner for Perfect Moulds.

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-Relaunching Voltas air conditioners under the `Verdant' brand, a premium model targeted at the retail segment.


- N D Khurody appointed as Additional Director of Voltas.


-Voltas has launched a range of small capacity refrigerators targeted at semi-urban and rural markets in India. - Chinese consumer durable giant Haier enters into a contract manufacturing agreement Voltas Ltd for air-conditioners and refrigerators. -Voltas introduces new range of water dispensers.

2005 2007

-Voltas secures order for world's Tallest building, burj towers, dubai -Voltas Ltd has informed that Universal Comfort Products Ltd (UCPL) is a 50:50 joint venture Company between Voltas and Fedders International Airconditioning Pvt Ltd (FIACPL), a subsidiary of Fedders Corporation, USA. -Voltas Ltd has appointed Mr. Jimmy Bilimoria and Mr. S N Menon, Independent Directors have as Additional Directors of the Company with effect from September 22, 2008.



The Company has its head office in Mumbai. The head quarter is present on 4 zones in India. West zone head quarters in Mumbai, East zone head quarters in Kolkata, North zone head quarters in New Delhi and South zone head quarters in Chennai.

The branch offices are widely distributed throughout India in many places as territorial and area offices at Ahmadabad, Baroda, Bangalore, Calicut, Coimbatore, Chandigarh, Delhi,

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Ghaziabad, Indore, Jaipur, Hyderabad, Jamshedpur, Kolhapur, Lucknow, Ludhiana, Madurai, Panjim, Pune, Secunderabad, Surat, Tirupati, Thirupur, Vijayawada, Vishakapatanam and Kochi which forms a responsive network across nation to cater to the demands.

Currently 4 factories are set up in India as Thane Plant (Maharastra), Dadra Plant (EM&RBG), Uttarakhand Plant (EM&RBG), Uttarakhand Plant (UPBG)

Voltas has established its operations overseas and overseas offices are located in Dubai, Abu Dhabi (UAE), Hong Kong, Kingdom of Bahrain, Singapore, Qatar, United Kingdom and Jeddah.

Subsidiaries and associate companies are There are many subsidiaries complementing Voltas.

Auto Aircon (India) limited, Pune Simto Investment Co. Ltd, Mumbai Metrovol FZE , Dubai Weathermaker limited, Dubai VIL Overseas Enterprises B.V., Amsterdam Voice Antilles N.V., The Netherlands Antilles Joint Ventures are: Universal Comfort Products Private Limited, Dadra Universal Voltas L.L.C. Abu Dhabi, UAE Saudi Ensas Co. Ltd, Jeddah Lalbuksh Voltas Engineering Services & Trading Company L.L.C., Muscat

M P Birla Institute Of Management 12

Chapter- ! Company Vi"ion # $i""ion

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Ever-changing times, never-changing spirit

Voltas has developed a vision for itself that will take it further on the path to prosperity. Megavol is the plan to achieve Rs10,000 crore in sales at a profitability of 10 per cent by the end of 2010-11.

a. To foster indigenous manufacture of engineering products and capital equipment, based on technologies acquired from overseas, often from Volkart's existing principals

b. To supply the full gamut of services, from marketing to commissioning, for such products.


Commitment to excellence Tata Business Excellence Module (TBEM) Commitment to HRD Commitment to good corporate citizenship Commitment to Corporate Governance

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Voltas, true to the Tata tradition of improving the quality of life, has long regarded participation in social development as a whole-hearted preoccupation that enriches the corporation itself. Voltas has always gone beyond its traditional business and industrial concerns to involve itself in projects that bring about upliftment in the lives of the under privileged and the deprived.

The concern springs from a deeply held belief that a true corporate vision must encompass more than those to whom the Company markets its services and products. Voltas understands that the time and resources thus invested and the professional expertise shared with the nation come back to the corporation in the long run as expected dividends of reputation, opportunity and acceptance.

The declaration of the Tata Council on Social Responsibility is disseminated to all employees through internal communications, since all are expected to be aware of the declaration. Reporting on community initiatives is regularly done through the intranet. The community is central to the core values we adhere to in the Tata Group.

If Voltas has a core, it is its businesses. If Voltas has a heart, it is its volunteers


It's in the very nature of Voltas' core businesses to be actively engaged in today's Green movement. Every day, the need to conserve energy, preserve the ecology and minimize man's carbon footprint become more and more imperative. That's a call which Voltas answers through its products, its services, and its operating principles Low-cost cooling begins at home Voltas minimizes wasteful energy consumption in

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its branded products. In fact, Voltas has long been a pioneer in microprocessor controlled room ACs for optimal energy usage. Sophisticated control systems in its air conditioning projects (the V-SCADA technology) as well as built environments (Building Management Systems) also help optimize energy usage through continuous monitoring and regulation.

Most recently, Voltas broke through in lowering operating costs for household AC users -by being first-to-market with the new generation 'Star-Rated' ACs. Rigorously tested and certified for energy-efficiency, the new product line gave Voltas the lead in reaching a whole new stratum of small town and rural buyer. The lowering of energy bills broke down their last resistance to home cooling. Systems and solutions that save on a far larger scale, Voltas' 'green' touch is seen in its Heating, Ventilation and Air Conditioning projects. The Company offers a unique combination of Engineered Ozone Systems for purer air quality, along with VRF (Variable Refrigerant Flow) technology for cooling. Installed together and working in synergy, they make a marked impact on cooling costs. Customers can breathe easier, for more reasons than one.

Energy-efficient technologies, 'intelligent' building management, purer air for better health -- they add up to a full portfolio for today's 'Green' buildings. These are sure to become more and more the rage, in step with the ongoing energy and climate crises. Voltas is right there with the solutions desired. The high water mark of pollution control When Voltas' Water Management business successfully completed its world-class water purification project in Singapore; it was the capstone of more than two decades in treating wastewater and effluents. All its built-up knowledge and experience were brought into play in the Changing Water Purification Plant, one of the largest of its kind anywhere. Its success now opens the way for more such large-scale and complex water management jobs, meeting todays urgent need for water conservation and reclamation. Once again, Voltas responds to the needs of the times and the concerns of its stakeholders. The Company is ready with the products, the processes, the people -- and most importantly, the principles.

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Voltas strives to provide a safe, healthy, clean and ergonomic working environment for its people. It prevents the wasteful use of natural resources and is committed to improving the environment, particularly with regard to the emission of greenhouse gases, and endeavours to offset the effect of climate change in all spheres of its activities. Voltas , in the process of production and sale of its products and services, strives for economic, social and environmental sustainabilitys.


Voltas is committed to supply goods and services of world class quality standards, backed by after-sales services consistent with the requirements of its customers, while striving for their total satisfaction. The quality standards of the companys goods and services meet applicable national and international standards. Voltas displays adequate health and safety labels, caveats and other necessary information on its product packaging.

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M P Birla Institute Of Management 18

M P Birla Institute Of Management


Chapter % Company&" po i'ie" # pro()'t mi*

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The cornerstone of the Voltas philosophy is the conviction that the well-being of the company and of its people are interdependent; and that the company's most valuable assets are its people. The company is committed for following:

To employ the most competent, on the basis of merit To ensure that every employee is treated with dignity and respect, and in a fair, consistent and equitable manner

To create a stimulating, enabling and supportive work atmosphere

To aid and encourage employees in realizing their full potential Voltas recognizes that the success of this philosophy depends in a large measure on the manner in which managers and their team members - at every level - carry out their duties and obligations to each other and to the company. Without mutual confidence and loyalty among employees, as well as respect for each other as human beings, our philosophy will not work.

Principles: Have knowledge of, and accept total responsibility for, the success of the organizations human resources philosophy, policies and procedures, and review them with team members to ensure their total understanding. Ensure consistent and fair application of all HR policies Exercise leadership by demonstrating integrity, professional knowledge, courage of your convictions, and concern for the feelings of others. Establish a relationship with team a member that encourages a free bi-directional flow of information, permits open discussion of differing views, and allows decision making at the most appropriate levels.

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In the same context, all employees are expected to maintain certain standards in relation to their work, and in representing themselves as the staff of Voltas. They will:

1. Communicate constructive ideas and opinions to managers and team members either pro-actively, or on request 2. Accept and support decisions made contrary to their expressed positions 3. Apply the highest standards of ethics, integrity and honesty.

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Voltas' operations have been organized into four independent business-specific clusters, each with its own facilities for market coverage and service to customers.

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Segment A : Electro-mechanical Projects & Services Domestic and International MEP solutions (including HVAC) in built and industrial environment. water management and treatment Segment B :Engineering Products & Services Mining and Construction Equipment, Materials Handling, and Textile

Machinery. Segment C: Unitary Cooling products for comfort and commercial use Room air conditioners Commercial Refrigeration

The various products of the Tata Voltas are

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Sturdiness, efficiency and superior design, featuring state-of-the-art technology, Voltas Freezers and Coolers not only consume less power but also withstand long power cuts. Add to this the trust of TATA, Voltas sets the benchmark for the industry. Backed by a quick and friendly Customer service, Voltas products know the worth of every rupee.

Wate- C,,le-

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The success of every office, institute and establishment depends on the efficiency of its most valuable assets. These assets are none other than its employees. And to keep them going, they need to be recharged. That's what the Tushar range of Water Coolers have been doing since 1964. They hold a prominent place in thousands of establishments across the Country, for they provide cool water round the clock. No Wonder, we call them the official thirst quenchers of India.

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A perfect blend of beauty and brains, the new mini magic is what every office, home and shop need. Experience the versatility of water. Hot enough to stimulate y with a cup of tea or coffee and cold enough to refresh with a glass of pure water or with a soft drink concentrate. An ode to nature's most marvelous gift.

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Electro-mechanical: Core business of the Company Operating Profits: Rs 3277 Mn. (USD 65 Mn.) 31st March, 2009

Electro-Mechanical Projects and Services Engineering Products and Services Unitary Cooling Products for Comfort & Commercial Use Others

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Electro-Mechanical Projects and Services Engineering Products and Services Unitary Cooling Products for Comfort & Commercial Use Others

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Contributes 63 % to the Companys TO Domestic business contributes 25% of the Companys TO International business contributes 38% of the Companys TO. Order book of 1000 cr as of 31st. March 2009 In the domestic market: Expanded the scope of services from Air conditioning to MEP -Mechanical (including air conditioning), electrical and public Health for built environment. Bagged/executed large orders such as the Rajiv Gandhi International Airport, Godrej IT park and 65% of the stadium projects for Commonwealth Games. Rajiv Gandhi International Airport was the first airport in Asia to be awarded the LEED certification. Green projects in progress are Lodha Excellus, Mumbai; Wave Rock-,TSI Venture, Hyderabad; RMZ Business Park, Chennai: TCS Bhubaneswar. MEP business grew by 94 % over last year Completed the execution of the single largest VRF installation in India, with a capacity of 3000 TR, for TCS Kensington IT Park, at Poway.

In Q1: Bagged MEP orders for two prestigious international airport, worth Rs 300 Cr. Kolkata and Chennai to be competed in 21-24 months -Undisputed leader in the Airport segment for MEP services Renewed thrust in the Water Management business has resulted in securing two prestigious orders worth Rs 38 Cr. from Kolkata Metropolitan Water & Sanitation Authority and Tata Steel.

M P Birla Institute Of Management 28


Contributes 13 % to the Company's TO. Impacted by the downturn in the Indian economy, especially in the second half. Resulted in marginal dip in TO. Profitability dropped by 40%. Focused on growth opportunities in coal mining and power plant construction, led to higher sales of mining equipment, arts and services.. The sale of forklifts showed a reduction of around 8% by volume, but increased the sale of cranes and warehousing equipment. In Textile machinery, the actual off take was very low. In anticipation of opportunities in post spinning, tied up with new International manufactures for new product lines dyeing machinery and weaving looms.

In Q1

Bagged order worth Rs. 210 Cr. From Hindustan Zinc Limited supply of worlds second biggest model of hydraulic excavators manufactured by O&K + a maintenance contract for 5 years.


Contributes 23 % to the Company's TO Indian air conditioner industry witnessed a slowdown in growth, from 28% to 6% also resulting in high inventory levels in the industry

Voltas air conditioner sales registered a growth of 8% Voltas room air conditioner sales grew by 24% in volume. within the highly competitive multi-brand retail segment well above the industry average of 7%

Increased reach in semi-urban and rural markets, by expanding the network of dealers.

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Introduced new products, spanning the entire spectrum, right up to the highest 5-Star rated Vertis Gold Split air conditioners, and the innovative Corner air conditioners

The service infrastructure was strengthened by the addition of an all-India toll-free number

Restructured the Commercial Refrigeration operations into a separate vertical; resulted in a higher sales growth of 34% in the Chest Cooler segment, and 87% in the Visi Cooler segment

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Chapter- + La,or For'e

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Human Resource capability remains a key source of the Companys competitive advantage. The Company continues to place emphasis on enhancement of skills and capabilities of its people for meeting future challenges. The key areas of human resource Developments are training, competency development and skill enhancement. The Company continues to implement best practices and innovative initiatives to meet the challenges in acquiring and retaining talent against intense competitive pressures. As the Company takes on projects with higher complexities and expands its business, the need to reinforce the human resource capabilities becomes more critical.

The total staff strength as on 31st March, 2009 was 10657, including 6228 contract staff, primarily for overseas projects.


Staff Expenses comprise salary, wages, bonus, Companys contribution to PF and other funds, retiring gratuity and welfare expenses. Staff expenses increased by 55% in 2008-09 to Rs.428.59 crores from Rs.276.85 crores in 2007-08, basically due to increase in manpower including contract employees for overseas projects. While Staff Expenses for domestic businesses increased by 17% in 2008-09 to Rs.185.86 crores from Rs.159.51 crores in 200708, the increase in international business was substantially higher by 107% at Rs.242.73 crores as compared to Rs.117.34 crores in 2007-08, primarily due to significant increase in manpower, for large overseas projects.

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Chapter-Company&" Finan'ia Performan'e

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Financial performance as a measure of operational Performance

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Operating profit at Rs335 crore, up by 21 per cent Sales / income from operations at Rs4,070 crore, up by 32 per cent Profit after tax at Rs253 crore, up by 21 per cent EPS at Rs7.63 as against Rs6.30

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The companys operating profit (profit before tax and exceptional items) rose by 21 per cent to Rs335 crore as compared to Rs278 crore in the previous year. Profit after exceptional items and tax rose by 21 per cent to Rs253 crore as against Rs208 crore in the previous year.

Sales and Services, net of Excise duty, increased by 32% in 2008-09 to Rs.4042.55 crores from Rs.3055.36 crores in 2007-08.In Electro-mechanical Projects and Services segment, the increase in revenue was 55% from Rs.1641.09 crores in 2007-08 to Rs.2546.43 crores in 200809. Revenue of Engineering Products and Services segment was lower by 2% and was Rs.542.19 crores in 2008-09 as compared to Rs.553.49 crores in 2007-08. The Company registered a growth of 11% in its Unitary Cooling Products for Comfort and Commercial Use segment and reported higher revenue of Rs.913.75 crores in 2008-09 as compared to Rs. 820.99 crores in 2007-08. Revenue from Others was higher by 1% in 2008-09 at Rs.40.18 crores as compared to Rs.39.79 crores in 2007-08.

M P Birla Institute Of Management


A.* 3ala ce S7eet

A.*.) W,-4" . Ca0"tal The Company continued on its path of growth and took several measures to ensure sustainability for the future in the face of global economic slowdown.

The Company continued its focus on tailoring its offerings of projects, services and products to the present market realities and dynamics. Significant steps in this direction have been a corporate acquisition, as well as additions to the roster of principals and the range of products offered. There have also been significant measures to rationalize costs in the interests of a short-term holding action, till such time, some clarity emerge with regard to future trends in global economy.

V,lta2F ,0e-at" . 0-,6"t2 7aGe .-,D A;*@ ,Ge- a 0e-",! ,6 la2t 6,5- 9ea-2.

M P Birla Institute Of Management


The business segments of the Company are : (A) Electro-mechanical Projects and Services (B) Engineering Products and Services (C) Unitary Cooling Products for Comfort and Commercial Use (D) Others

M P Birla Institute Of Management


Ea- " .2 2588a-9 3ala ce 27eet

Ma- H $% Sources of funds OD e-H2 65 ! Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans T,tal Uses of funds /"Ie! a22et2 Gross block Less : revaluation reserve Less : depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances 1,580.15 1,287.29 984.24 898.33 751.82 accumulated 122.28 140.75 18.75 267.93 115.06 123.84 6.03 137.41 145.92 123.84 10.99 61.03 166.15 75.48 6.95 46.22 124.81 121.62 0.97 45.47 263.02 238.89 269.76 241.63 246.43 47.67 A%A.?? 82.14 =(*.?$ 47.01 25.00 ;);.=* 74.47 31.94 *??.?* 52.08 31.15 *B*.*= 33.07 505.25 33.07 347.68 33.06 208.35 33.06 160.46 33.06 155.95 Ma- H $B Ma- H $( Ma- H $A Ma- H $=

M P Birla Institute Of Management 37

Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written T,tal Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity 103.54 227.47 3308.85 187.85 224.09 3308.85 10.17 214.99 330.88 54.15 269.94 330.88 33.58 291.60 330.88 268.44 137.44 45.86 50.02 47.46 1,421.59 158.56 A%A.?? 1,091.68 195.61 =(*.?$ 866.68 117.56 ;);.=* 727.06 171.27 *??.?* 647.64 104.18 *B*.*=

M P Birla Institute Of Management



M P Birla Institute Of Management



Ma- H $% Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Nonrecurring items Other non cash adjustments Reported net profit Earnings before appropriation Equity dividend 208.37 248.37 44.67 2,240.09 6.98 276.85 73.35 193.59 2,790.86 253.68 45.89 299.57 5.96 13.56 280.04 99.17 180.87 27.50 3,044.54

Ma- H $B

Ma- H $(

Ma- H $A

Ma- H $=





46.24 1,774.67 239.97 44.48 177.09 2,282.45 118.10 64.35 182.45 9.40 12.32 160.73 41.42 119.31 60.79 5.98 186.08 210.94 33.09

-23.77 1,431.78 176.23 35.17 132.31 1,751.73 101.41 24.58 125.99 5.19 11.09 109.71 21.20 88.51 -52.27 6.52 42.76 62.76 19.85

213.71 825.21 144.35 30.09 130.34 1,343.70 42.96 25.57 68.53 7.24 10.48 50.81 7.39 43.42 7.06 -0.07 50.41 65.41 16.54

550.70 513.76 132.76 31.70 126.32 -105.66 1,249.59 23.61 22.43 46.04 6.73 13.25 26.06 7.73 18.33 12.67 8.03 39.03 49.03 9.93

M P Birla Institute Of Management 40

Preference dividend Dividend tax Retained earnings

7.59 196.10

5.62 172.22

2.78 40.12

2.35 46.52

1.27 37.83

/" a c"al leGe-a.e Ca27 6l,D 2tate8e t

Ma- H $% Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin. activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 307.54 345.83 -131.80 -79.07 134.96 140.25 275.21 Ma- H $B Ma- H $( 222.83 1.66 51.35 -21.39 31.62 108.63 140.25 91.69 48.94 -30.95 -55.02 -37.03 145.66 108.63 Ma- H $A Ma- H $= 57.66 43.77 3.13 7.18 54.08 91.58 145.66 46.87 -22.83 46.60 -22.32 1.45 90.13 91.58

M P Birla Institute Of Management


Ke9 -at",2

C, cl52", : Voltas reported strong F1Q08 results, underpinning positive momentum in the overall business dynamics and the possibility of operating margin expansion. However, valuations look expensive, and any slowdown in margin expansion may be negative for the stock.

M P Birla Institute Of Management


O0e-at", al 0e-6,-8a ce: Financial performance as a measure of Operational Performance

Sale2 a ! Se-G"ce2 #Se.8e t ReGe 5e2+:

Sales and Services, net of Excise duty, increased by 32% in 2008-09 to Rs.4042.55 crores from Rs.3055.36 crores in 2007-08. In Electro-mechanical Projects and Services segment, the increase in revenue was 55% from Rs.1641.09 crores in 2007-08 to Rs.2546.43 crores in 200809. Revenue of Engineering Products and Services segment was lower by 2% and was Rs.542.19 crores in 2008-09 as compared to Rs.553.49 crores in 2007-08. The Company registered a growth of 11% in its Unitary Cooling Products for Comfort and Commercial Use segment and reported higher revenue of Rs.913.75 crores in 2008-09 as compared to Rs. 820.99 crores in 2007-08. Revenue from Others was higher by 1% in 2008-09 at Rs.40.18 crores as compared to Rs.39.79 crores in 2007-08.

M P Birla Institute Of Management


M P Birla Institute Of Management


Voltas reported a top line of Rs8.6bn, a growth of 30% YoY, for Q3FY09. This growth was ably supported by the MEP division, which grew by 68% YoY as compared to a de-growth of 31% and 5% in engineering and unitary cooling, respectively. EBITDA margins during the quarter decreased by 254bps YoY to 5.7%, mainly due to a lower margin in both engineering and unitary cooling(9.8% and 0.7%, respectively). Another reason for the lower margin was an additional charge of Rs60m, which was included in the employee cost on account of revaluation of employee benefit. PAT increased by 11% YoY to Rs424m, on the back of interest income of Rs20m on account of settlement of claims and lower tax rate due to a tax reversal of Rs10m.

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Chapter-. Or/ani0ationa Str)'t)re

M P Birla Institute Of Management


O-.a "Jat", 2t-5ct5-e

The board of directors consists of chairman ishaat hussain followed by the managing director A soni and 8 directors Nasser munjee, N J jhaveri, S D kulkarni, ravi kanth, N D khurodey, N N tata, jimmy bilimoria, S N menon.

O-.a "Jat", c7a-t


Managing Director



Vice President

General Manager

Finance & commercial

Human Resource

Sales & Services

Business Improvement Group

Chief Financial officer

Sales Manager

Independent Advisors

Channel Sales Officer

Financial Planning Consultants

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Chapter- 1 Department" in Vo ta"

M P Birla Institute Of Management


There are various departments in the organization. The major departments are: Human resource department. Marketing department. Finance & accounting department. Water management department Mining & Construction Equipment Division (M&CE) Machine Tools department Materials Handling department


Human Resource capability remains a key source of the Companys competitive advantage. The Company continues to place emphasis on enhancement of skills and capabilities of its people for meeting future challenges. The key areas of human resource Developments are training, competency development and skill enhancement. The Company continues to implement best practices and innovative initiatives to meet the challenges in acquiring and retaining talent against intense competitive pressures. As the Company takes on projects with higher complexities and expands its business, the need to reinforce the human resource capabilities becomes more critical.

During the year, over 3000 personnel were deployed in international projects - recruited from India, UK, Romania, Sri Lanka, Nepal, Bangladesh, Philippines and GCC countries. Technical Training Programs were conducted in India at ten ITIs and two Polytechnics, to provide project specific training to about 800 technicians, before deployment.

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The Companys focus on improved Employee Engagement and ushering in a proactive work culture, through several enterprise level initiatives has been noteworthy. Employee Contact Programs have helped in obtaining valuable feedback and implement appropriate action plans.

The Company continues to place emphasis on enhancement of skills and capabilities of its people for meeting future challenges. The key areas of human resource development are training, competency development and skill enhancement. Career Development Plans have been evolved for high potential managers. In addition, the Company continued to impart training to its employees, with major focus on Leadership Development and Managerial Effectiveness. A number of Internal and External training workshops, courses and seminars were conducted and an elaborate induction-training programme for fresh graduate engineers, at the entry level is arranged. The feedback from the training programmes has been very encouraging

V,lta2 1RD Ce te-

Voltas HRD Centre, inaugurated on June 7, 1995, was designed by a group of architects, engineers, behavioural scientists and HRD executives to provide the right environment for

M P Birla Institute Of Management


Training and Development. Set amidst idyllic sylvan surroundings, the Centre has an auditorium and a conference hall, as well as a number of syndicate rooms of varying seating capacities, backed by modern training aids and accessories. Voltas' operations have been organized into four independent business-specific clusters, each with its own facilities for market coverage and service to customers

B.).* Re20, 2":"l"t"e2 ,6 1R

To carry out the activities related to HR To ensure that Competency and Skill Matrix are identified To ensure that Training needs are Identified, Planned and Conducted To ensure that Training effectiveness is measured To ensure that systems to motivate and empower employees are identified and implemented To control Quality records related to Quality System of their functions

B.).; A5t7,-"t"e2 ,6 1R
To initiate corrective actions when training planned are not achieved within the targets. To arrange training programs to all departments as per plan

B.).= T7e 65 ct", 2 ,6 1RD

Recruitment. Training & development. Statutory wage & salary administration. Labor welfare, which includes canteen facilities, transportation, and housekeeping Etc.

M P Birla Institute Of Management



Voltas sourcing and marketing operations cover air conditioners, textile machinery, machine tools, mining and construction equipment and industrial chemicals. In these sectors, the company demonstrates its specialized engineering expertise, as well as its extensive network for global sourcing.

The global sourcing agreement has brought significant cost benefits to Voltas. Voltas claims that global sourcing has helped it become the lowest-cost manufacturer in India. In the past five years, material costs for window ACs have dropped 20 per cent, from Rs 10,400 per unit to under Rs 8,000 a unit, while the conversion cost has come down by a remarkable 60 per cent, from Rs 2,000 a unit to Rs 650 a unit.


The company signed memoranda of understanding with the dealers, clear spelling out the operational procedures and norms to be followed and the scope of work between the dealer and Voltas. Voltas set aside 1 per cent of its turnover for training and development of its channel partners. Money was pumped into dealer infrastructure, manpower training (with certification programmes for all employees), sharing costs of mobile vans, cooperative ads and so on. Changes were also made in the after-sales part of the business. The dealers are responsible for customer care .Even the dealers have strict guidelines on interacting with customers and responding to complaints. How many servicemen are required, what kind of servicing kit is required, what spare parts must always be there, the dress code of a servicemen - everything is spelt out for the dealer.

M P Birla Institute Of Management


Time targets - under four hours in the metros - have also been set for responding to customer calls. And since the dealers and the head office are connected through a SAP system, all transactions are online and transparent.

B.*.* 3-a ! :5"l!" .

Voltas has been in the process of brand building and thus shifted ad agencies - from O&M to Euro RSG, which came up with a new positioning platform. The ads focused on defining features of Voltas's new product range such as uniform cooling, energy-saving, timers and air filters, with cues of performance and value-addition through technological innovation.

Subsequent promotions have focused on themes like customer service and low costs of ownership. Celebrities like Shah Rukh Khan and Shoaib Akhtar were also roped in to strengthen the brand.

Voltas invested more than Rs 50 crore (Rs 500 million) in branding initiatives; last year, it spent Rs 17 crore (Rs 170 million) on marketing.

The figure for this year is somewhat higher: Rs 20 crore (Rs 200 million). But then, the theme has changed too. Since the focus now is on capturing a larger share of the mass market, Voltas's new campaign is aimed at the middle class, and has been shot in a distinctly non-urban environment.

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B.; /INANCE < ACCOUNTING DEPARTMENT B.;.) Va-",52 Sect", 2 " /" a ce De0a-t8e t.
Book and Budget Sales & bills payable Costing & establishments Internal audit & price store ledger

B.;.* 3,,4 a ! 35!.et

Collection of accounts from different sections Preparation of trial balance and final accounts Co-ordination with auditors Helping statutory auditor

B.;.= 3"ll2 Pa9a:le

This section handles the payment to be made to the suppliers. This includes the receiving of stores receipt vouchers, purchase order and their verification in terms of quality and quantity. Once the claims are found satisfactory, the payment is made as per the terms.

B.;.A C,2t" .
Sets the cost that is used by commercial group to add profit margin to set the price.

B.;.( E2ta:l"278e t
This section handles all the payment to the employees such as Salary & provident fund Incentives Loans and advances Medical reimbursement

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B.;.B I te- al a5!"t:

After preparing the balance sheet, the internal auditors will audit & they send audited balance sheets to the government auditors to audit the balance sheet.

B.;.? Ot7e- 65 ct", 2 ,6 /" a ce De0a-t8e t a-e, Payment of wages and salaries Payment to suppliers Foreign purchase payments. Cash management.

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B.= Wate- Ma a.e8e t De0a-t8e t

Voltas caters to the vital sector of water management through pumping and water treatment projects. In this domain, Voltas is established as a total solutions provider for turnkey pumping projects as well as for water, effluent and sewage treatment, as well as water pollution control. In all these applications, Voltas offers complete electro-mechanical and associated civil construction services. The key strength of Voltas is the accumulated knowledge and expertise to design, engineer, supply, erect, test and commission complex pumping and water/sewage/effluent treatment systems for a diverse range of projects. The entire range of water/waste pollution control equipment is offered by Voltas, and its expertise in this area has been developed over the years. Voltas can handle large integrated turnkey projects from concept to commissioning. It has ISO accreditation for Engineering Design, Manufacturing and Contracting. Voltas' capabilities have been proven in a range of projects, which include water supply and pumping for cities and towns major irrigation schemes thermal, nuclear and hydroelectric power stations water and sewage treatment projects for cities and towns industrial water and effluent treatment projects for steel, fertilizer, chemicals, cement, sugar refineries, paper and other industries.

M P Birla Institute Of Management


B.A M" " . < C, 2t-5ct", EK5"08e t D"G"2", #M<CE+

Voltas Mining & Construction Equipment Division (M&CE) has been serving the cause of mechanization and modernization for almost 50 years, serving as a vital value-adding link between manufacturers, suppliers and end-users. Over the decades, it has established a large and appreciative customer base from both public and private sectors. In conjunction with globally renowned manufacturers, M & CE offers its customers a comprehensive package - proven expertise, long experience, the world's best equipment and value-added service support. Today, the Division offers the world's best technologies for infrastructure building, along with a highly professional support engineering team. As technology transforms the style and scale of the core sector surface mining industry, M&CE plays a vital role in making the latest and most efficient surface mining equipment available to Indian end users, especially for mining of coal, iron, copper, zinc and lignite. With growing investment in infrastructure development, M&CE is increasingly focusing on construction equipment, especially catering to the needs of road building. Hydro projects and quarrying are also prime end-user industries. The scope, scale and impact of several recent milestones testify to M&CE's vital role in mechanizing and modernizing mining and construction in India.

M P Birla Institute Of Management


B.( Mac7" e T,,l2 De0a-t8e t

Voltas Machine Tools is one of India's leading marketing & servicing organizations, focused on providing engineering solutions to Indian industry. In this domain, Voltas has gained experience over several decades by fulfilling machine tools needs across a wide spectrum of manufacturing applications. In this activity, Voltas demonstrates a strong focus towards its customer segments, be it automotive, heavy engineering, defense, public sector enterprises, or small & medium enterprises.

B.B Mate-"al2 1a !l" . De0a-t8e t

Voltas Materials Handling has been catering to the needs of the materials handling market for over 44 years. Making a modest beginning in 1964 as a licensee of Yale - USA, for manufacturing and marketing of diesel-driven forklift trucks (up to 3 tons) and batteryoperated trucks (up to 2.5 tons), Voltas has come a long way in establishing itself as a market leader. Today it offers in-house designed forklift trucks ranging up to 20 tons in the diesel version, and up to 3 tons in both battery and gas (LPG & CNG) versions. Voltas is capable of designing and manufacturing higher capacity diesel forklift trucks against specific enquiries. Voltas has had technical tie-ups with some of the most reputed names in the field, such as Boss Trucks - UK and Terex Inc - USA. The knowledge and engineering expertise gained over the years is used today to meet the unique needs of our customers. Customized design and quality manufacture is facilitated with modern design tools such as CAD/CAM and CAE, and production tools involving use of precision CNC machines.

M P Birla Institute Of Management


Chapter-2 S3OT Ana y"i"

M P Birla Institute Of Management


% SWOT ANALYSIS %.) St-e .t72

Voltas is a representation of global technology leadership Undisputed domain knowledge Provider of solutions in cooling appliances. Committed life-long product support Trusted sales and service network The design and manufacture of industrial equipment Serving diverse industrial sectors and applications. The company has a strong nation-wide infrastructure with committed excusive dealers

%.* Wea4 e22

Highly dependent on its parent company for R&D and technology support. After sales services is one of the most crucial aspects. The company is not well equipped with eco friendly technology for all products. Does not do any effective advertisement nor has not looked much into advertisement strategy.

%.; O00,-t5 "t"e2

Growing Indian middle class characterized with low penetration level of consumer durable. Advent of Internet provides an excellent opportunity to reach to a large base of consumers and cut costs.

M P Birla Institute Of Management 60

There is a changing dynamics of consumer behavior where in luxury goods are being perceived as necessities with higher disposable incomes being spent on lifestyle products.

CII has urged the government to reduce special excise duty (SED) on air conditioners form 16%-8% in the next budget

Government spending in infrastructure facilities is expected to increase and large investments are being made in the power sector as well as in modernization of existing airports. Two initial orders have been recently booked in the current year (2009-10) for execution of MEP projects for the Kolkata and Chennai airports.

Compliance with legislation such as Energy Conservation Building Code/National Building Code will shortly become mandatory. The Company has proactively invested in the development of energy efficient and environment friendly products which will provide an opportunity for wider participation in the market

The Central Government has taken measures such as reduction in excise duty to revive the economic growth. This reduction in taxes and interest rates could provide further stimulus to air conditioners and refrigeration products.

Increased threats from cheaper imports, FROM NEIGHBOURING COUNTRIES Inflation effect The Company has increased its focus on industrial and infrastructure projects the entire spectrum from pre-sale to project handover is critically evaluated for probable and potential risks. The domestic market is dominated by the presence of key international players, many of whom are setting up manufacturing facilities for greater cost-effectiveness.

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The Company has to deal with currency fluctuations, since it earns in the Middle East in currencies linked to USD, while some of material inputs are often sourced from Europe, Japan and China.

Commodity prices in the recent past have been subject to wide price fluctuations, affecting metals such as steel, copper and aluminum, as well as PVC, which are the major raw materials/components of this segment.

Likely to face fierce competition from domestic companies as well MNC brands

M P Birla Institute Of Management


Chapter-4 S)//e"tion" # Re'ommen(ation"

S5..e2t", 2 < Rec,88e !at", 2

M P Birla Institute Of Management


Sales & Distribution - Voltas must aim for the sales & distribution team to be more flexible in responding to market dynamics and more accountable by requiring it to document all sales commitments

Accounts Receivable - The company needed to improve accounting processes to reduce working capital requirements

Customer Service - The idea of Customer service to keep comprehensive, centralized records of all contact to enhance customer service and strengthen customer loyalty.

Improve after Sales Service Improvement in after sales service can help in increasing sales.

Improve the marketing strategies i.e. advertising, promotion etc. This will surely help Voltas AC to penetrate the tough Indian market and to keep the market share intact.

Attractive schemes must be launched by company in order to attract lower middle class. Increase the number of Engineers in after sales Service department. More promotional campaigns must be started. Customer service cell should be increased.

M P Birla Institute Of Management



Voltas, a Tata enterprise, is Indias premier air conditioning and refrigeration company. The companys primary asset has been its experience and knowledge, built up over 50 years, in designing, manufacturing, installing and servicing of air conditioning and refrigeration systems. Voltas products are synonymous with quality and reliability. Apart from being the pioneer in air conditioning in India, the company is also a leader in commercial refrigeration and preservation, offering a range of coolers and freezers. These products are manufactured and marketed by Voltas Hyderabad unit and sold under the Coldcel brand name. Currently, the Coldcel brand is the market leader in the commercial refrigeration segment, with an overall market share of 40 per cent, 34 per cent in the cooler segment and 95 per cent in the chocolate cooler segment. The Coldcel commercial refrigerator range includes deep freezers, visi coolers and chest coolers. These products offer a host of advantages, the most important being multi-door options, lower power consumption, dependable after-sales service for the life of the product and the Tata assurance of quality and trust. These plusses are the result of the companys commitment to continuously provide cost effective solutions in refrigeration.

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A wide range of products are available to meet various refrigeration requirements. The product range comprises Chest Freezers, Chest Coolers, Visicoolers, Chocolate Coolers, Wine Coolers and other refrigeration products. These products are manufactured at Voltas newly set up modern manufacturing facility at Pantnagar in Uttarakhand for commercial refrigeration products.

Chest Coolers - 100L, 200L, 300L, 400L Visi Coolers - 70L, 120L, 220L, 320L. Chest Freezers - Hard top - 70L, 100L, 200L, 300L, 400L, 500L Glass Top - 200L, 300L, 400L Upright deep Freezers of 520L capacity


Following are the features of deep freezers.

Soft Look Designs for Better Appearance Precoated Inner Liners for Improved Hygiene Castor Wheels for Easy Transportation UV Grade Plastic Materials for Long Lasting Appear CFC-Free Insulation for Environment Protection Powder Painted Body for Glossy Finish Spring Loaded Hinges for Effortless Usage Fast Freeze Switch for Faster Cooling When in Need Signal Indicator for Storage and Protection

M P Birla Institute Of Management 66

Door Lock for Restricted Accessibility Sunken Handle for Safer Operation PUF Insulation

Deep freezers are available as metal top freezers and glass top freezers



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Following are the features of horizontal chest coolers

Customized Branding of Machines Elegant Door Trims Castor Wheel for Free and Easy Movement Spring-loaded Hinges in Doors Multiple Door with Sunken Handles Tropicalized and Energy-efficient R 134a Compressor Inner Lining of Aluminum Textured Sheet Ensuring Corrosion Resistant with Outer Body in Powder-coat High Density, High Pressure 60mm Insulation Ensuring Contemporary and Sturdy Design

M P Birla Institute Of Management



Following are the features of visi coolers

Castor Wheels for Easy Transportation UV Grade Plastic Materials for Long Lasting Appear CFC-Free Insulation for Environment Protection Powder Painted Body for Glossy Finish Door Lock for Restricted Accessibility PUF Insulation Low Emissivity Glass for Optimum Cooling Loss Sleek Designs for Better Appearance Certified Performance by International Laboratories Tropicalized Compressors

M P Birla Institute Of Management



Our world famous compressors run more smoothly than piston compressors, thus reducing the vibration noise.


The indoor unit uses indoor fan with a wide diameter, different distances and slanting blades, which prevents the formation of whirling air. This results in reducing noise levels.


The PG no grade speed control motor is not affected by voltage fluctuations and this avoids the noise caused by the motor.

M P Birla Institute Of Management



The new golden optimised wind flow design lets the air flow smoothly and lowers the noise down to minimum.


Each pipe is bent using an imported automatic three dimensional bending machine at one goes. This reduces the welding knots; noise caused by box resonance and also avoids deformation.


Once this function is chosen, the room temperature automatically adjusts to suit the human body temperature. You only need to press the sleep key and the air conditioner deactivates automatically by checking the fan speed and the temperature setting, avoiding excessive cooling.


Use of world-famous compressors ensures high cooling efficiency and long life.

M P Birla Institute Of Management



The fluorescent technology adopted in the remote control makes it convenient to use in dark. Also, nano technology used in the plastic crust produces antibacterial mote which can efficiently eliminate bacteria on the remote control and avoid germ infection.


Fitted in the indoor unit, this water contamination free foil enhances the heat exchange efficiency.


It efficiently prevents bacteria from breeding and spreading to create a healthy and comfortable environment.

Voltas, a Tata enterprise has always aimed at acquiring customer satisfaction and has hence designed products to suit the special requirements. Voltas are under a conscious effort to grow the commercial refrigeration products segment. Voltas Limited has lined up a fresh strategy to develop the market for its commercial refrigeration systems.

M P Birla Institute Of Management


Coldcel mainly targeted the institutional buyer, ice-cream manufacturers and retail outlets. The Company customizes the products to suit special requirements.

The brand name is supported with an extensive multimedia advertising campaign. The company had appointed Mudra Advertising to handle the advertising account for Coldcel.

Voltas Limited had appointed dedicated sales personnel across 23 company-owned branches in leading metros and mini metros.

Company started stocking a limited range of its commercial refrigerators across a network of dealers across the country. The dealers will be used primarily for potential consumers to book orders and contact the company in case the products have to be customized to suit specific needs.

Voltas Coldcel refrigerators is available through its 850 authorized service dealers covering over 8,000 towns and villages, making Voltas service network the widest and most efficient in the industry.

The company offers Annual Maintenance Contract.

The products launched have the contemporary soft look design - a first in India, exclusive multi-door options, lower power consumption, dependable after-sales service for the life of the product and the Tata assurance of quality and trust.

The company is in the process of developing new kinds of products to cater to rural and semi-urban areas, where the power supply is erratic.

M P Birla Institute Of Management


Entire logistics operations is outsourced to Drive India Enterprise Solutions Limited (DIESL), an integrated logistics company promoted by Tata Industries as there were inefficiencies in logistics operations, leading to high cost build-ups, higher dead-onarrivals and other irregularities.

A lean organization structure, with front-line personnel having defined authority levels, helps employees to remain agile and responsive to customer needs. The lean work-force combined with a Variable Pay model, has helped keep the work-force motivated and achieves much higher performance.

Voltas coldcel products are used by ice-cream and frozen food manufacturers, beverage manufacturers, malls and hypermarkets, and at all retail points selling frozen or perishable food and beverages. The applications of various products are

V"2" C,,le-2 Ideal for storing Soft Drinks, Fruit Juices, Milk Sachets, Tetra Pak Products, Flavored Milk, Yogurt, Chocolates, Sweet Curd, Cheese, Butter, Beer, Mineral Water.

Dee0 /-eeJe-2 Ideal for storing Ice Creams, Frozen Meat, Fish, Poultry and Frozen Vegetables.

C7e2t c,,le-2 Ideal for storing Soft Drinks, Fruit Juices, Milk Sachets, Tetra Pak Products, Flavored Milk, Yogurt, Chocolates, Sweet Curd, Cheese, Butter, Beer, Mineral Water.

M P Birla Institute Of Management


Voltas Coldcel has helped clients across a spectrum of industries to meet their refrigeration requirements.

Some of satisfied customers are

Pepsi Cadbury Nestle GCMFF (Amul) Hindustan Lever Mother Dairy Fruits and Vegetables Ltd Orissa Milk Marketing Federation Parag Dairy Patna Dairy Bangalore Dairy Parle International Limited Creamline Dairy Tulika Ice Cream Hatchson Agro Products Arokya Milk Products

M P Birla Institute Of Management 75


Voltas has a strong in-house R&D capability with a well-developed R&D laboratory.R&D team comprises of highly experienced and efficient engineers dedicated to commercial development of products. Quality Assurances Systems at various stages of product development ensures top class quality of their products.

Testing facilities include...

Computerized data logger for accurate recording of test results.

Environmental test chambers for testing the machines in assimilated test conditions at various ambient temperatures and humidity levels.

Well equipped electrical test lab to test components and accessories like fan motor etc., Design is carried out by the CAD CAM systems.

Voltas Coldcel's products are highly advanced and have many advanced inbuilt features to ensure smooth functioning of the product even under unfavorable conditions.

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Automated PU Foaming Most of them dont give PUF equipment Insulation (Glass Wool used instead). Those who give PUF, use Manual Pouring method

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PUF insulation thickness Density of insulation is very Chest Type and Upright low due to manual pouring Coolers 60 mm method

Visi Coolers 45mm Pa" t" . Pre-treatment: Degreasing, Use crude methods owing to Anti-Corrosion Treatment lack and Phosphate enhances equipment adhesive paint properties of Spray painting: Finish not as good and prone to scratches Powder Coating: Gives and rusting products scratch glossiness, resistance and of sophisticated

durability for a long time Ga2 C7a-." . Fully Automatic Charging No machines with done automation. with Charging obsolete

computerized display of equipment exact charged quantity being


Internal Components are Sufficient care not taken thoroughly cleaned and owing to lack of equipment, dehydrated assembling before hence cannot ensure

complete dehydration

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Soldering material used Soldering material has low for brazing joints has high silver content, hence joints silver content, hence joints are prone to cracks and leaks

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are leak proof EGac5at", High Capacity Vacuum Vacuum pump capacities are pumps used for evacuation much lower, hence complete of air and foreign particles evacuation from condenser evaporator / happens very rarely

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Components availability & prices Regional - distribution strengths National - large institutional strengths Ability to customize refrigeration configurations quickly Select products - application engineering strengths

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Commercial refrigeration products have a derived demand -that is, the demand is dependent on the user industries performance Usage mostly in processed foods and beverage segments Refrigeration components are mostly standardized; Customization occurs mainly in configuration of cold rooms / cold storage system, where determine the design of the equipment Components often sold on Cash and Carry basis Excise duty: 16 %; Import Duty - Basic: nil, surcharge: 2.5 %, countervailing: 16 % and special additional duty: 4 %. Channels: Voltas sell components through dealers the area to be cooled will

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Growth in the retailing sector Investments in cold store / refrigeration chains across the country Increase in the demand for fresh fruits and vegetables (processed as well as unprocessed), milk and milk products, fish and meat products Exports thrust, especially in processed fruits& vegetables, fish and meat products

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As per the information gathered from various sources Voltas coldcel are the market leaders with market share of over 38% in the commercial refrigeration segment giving a cut throat competition to its local as well as international players.



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Lack of adequate storage infrastructure - few cold storages, refrigerated trucks High level of wastage of food products Low level of conversion of food products into processed foods Seasonality of demand for equipment such as freezers, ice making machine, bottle coolers

Changes in excise and customs duties on refrigeration components affect their demand.

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Voltas is that kind of brand which has highly deep routed in the Indian market and at the same time people have developed a greater goodwill towards it.

The commercial refrigeration of Voltas which I had chosen for the topic of study has got all the relevant factors to capture consumer market. The strategy found out by Voltas as well as its quality is satisfactory which has led to the success of the product. One suggestion is that more care and concern should be given to after sales service to retain the trust of existing customers. That Voltas should bring advertisement in print media and audio to attract more consumers towards brand and concentrate on semi urban areas and remote areas too. Voltas has more visual identity, but it should work to create strong brand identity. Voltas should keep on brining out new time attractive offers and schemes to increase brand value and attract customers. Exhibitions do not help to generate so much sells but they should be conducted regularly. This helps in generating awareness regarding the product in customers which ultimately helps in sales. Company should try to improve service. No doubt the company products have technically edge over competitors but in long run they have to build stronger strategies in selling and distribution.

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Websites referred: E,5- al2: Hindu business line Business outlook

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