Voltas to set up Rs 500 crore facility in Tirupati

Voltas Limited, the market leader in the room air-conditioning segment, plans to set up a new manufacturing facility in Tirupati with a total investment of Rs. 500 crore.

This expansion is mainly for the purpose of manufacturing air conditioners and related cooling products with a total capacity of more than 1 million units to start with, informed the company. This manufacturing facility would help the company reduce transportation cost.

The company enjoyed around 25.6 per cent market share in the air cooling market as on Q2FY19. Its revenue mix as on Q2FY19 comprised Electro-Mechanical Projects and Services (64 per cent), Unitary Cooling Products for Comfort and Commercial use (31 per cent) and Engineering Products and Services (5 per cent).

The total order book as of September 30, 2018, for the domestic project stood at close to Rs. 2,848 crore and for the international operations was Rs. 2,035 crore. During Q2FY19, the order intake for the domestic market stood at Rs. 630 crore and international markets was Rs. 450 crore.

The company is going to announce its results for the December quarter on Feb 14, 2019.

On Monday, the stock of Voltas opened at Rs. 532.20 per share and made an intraday high and low of Rs. 535 and Rs. 520.30 on the BSE. At 11:16 hours, the stock was trading at Rs. 520.45. The stock had hit its 52-week high of Rs. 664.60 on April 23, 2018 and its 52-week low of Rs. 471 on October 8, 2018 on the BSE.