Voltas continues with its 15 % and 20% share in central ac’s and ducted system respectively. The Rs 824 crore Voltas has interests in areas as diversified as engineering products and projects, chemicals, cooling appliances and refrigerators and office furniture. The company slipped into the red in FY97 and FY98, during which, it devised various initiatives for a turnaround. This included stripping idle assets and hiving off loss making subsidiaries. The efforts bore fruits as Voltas posted a net profit of Rs 12.79 crore for FY99. However, for FY00, its topline dipped 16 per cent to Rs 824 crore. As the company managed growth only in textile machinery, motors & modular ,furniture , business . the other divisions such as machine tools , fork lift trucks , air conditions , refrigerators ,and room air conditioners showed declining sales both in quality as well as value terms .
Also, the net profit slid by 57 per cent to Rs 5.5 crore. According to the company, the slowdown in the capital goods sector and engineering businesses are responsible for the sluggish performance during FY00. However, its cooling appliances and refrigerator businesses have also registered a near 26 per cent fall in FY00. Also, its contribution towards total revenues have reduced from 61 per cent to 55 per cent in FY00.. Thanks to innovative product launches and technological advancements, most of its products have shown a healthy growth during FY01.
From the above table, it can be seen that during FY2000, the company managed growth only in the textile machinery, hydraulic pumps, motors, and the modular furniture business. The other divisions showed declining sales both in quantity as well as value terms.
Company has shown an overall 64% increase in the order book position during FY01The company has launched a new system called the Ozone Injection System, which checks the sick building syndrome and prevents the circulation of unhealthy air.
Unhealthy air could be the cause of bad ventilation, bad air-conditioner, or poor maintenance of air-conditioners. The new system is pioneered by Voltas in collaboration with a Canadian company called Daks. The company expects its central AC segment to pick up with the growing environmental concern in the coming years.
While Voltas continues with its 22 per cent market in the central AC and ducted systems, respectively, its mini split ACs are also expected to add to the revenues of the company.
Also, with the launch of its Verdant range of ACs, Voltas is further expected to strengthen its room AC share. However, for FY01, 12 per cent of the revenues have come from the retail segment with the rest coming from institutional sales. For the first nine months of FY01, Voltas has registered a seven per cent rise in revenue.
.
12 Comments