VOLTAS
Voltas is the pioneer in cooling appliances in India. In fact, the Voltas name is often synonymous with air conditioners. Over the past four decades, over a million customers have put their trust and confidence in the Voltas range of air conditioners, a feat unmatched in Indian markets.
Few in this field can match Voltas' range of breakthroughs and firsts:
In 1954, Voltas manufactured India's first indigenous room air conditioners. In 1969, Voltas set up India's first integrated AC plant In 1982, Voltas introduced innovative split air conditioners. In 1987, Voltas pioneered a mini water cooler, catering to offices, small shops and small scale units In 1993, Voltas introduced the tall elegant Slimline In 1998, Voltas introduced the first microprocessor-based package units In 2002, Voltas launched India's first sub-Rs 10,000 room AC
The company is constantly extending its range, sharpening its professionalism, and intensifying the personal touch - resulting in strong consumer loyalty for its products.
A range of window, split and Sensicool air conditioners is manufactured for the institutional and retail segments. The range includes Vectra, the economy problem, and Vertis DX, the premium brand, positioned as 'AC with IQ', the value- for-money bestselling model, offering international quality at a very affordable price. All these are manufactured in a joint venture between Voltas and Fedders International of US.
Voltas also markets a range of commercial refrigerators under the 'Coldcel' brand name, as well the 'Quench' range of water coolers and dispensers. For all its ranges, Voltas has a service package that supports them. It offers a lifeline service through its nationwide network of service centres. Well-trained engineers, technicials and a fully computerized network response system support each other. Additiionally, Voltas enjoys the whole-hearted support of a 270-strong dealer base and 700 retailers, whose goodwill and trust have been earned over four decades.
Intelligently international Voltas scores a big bang retail triumph with its world-class Vertis ACs ......
In a noteworthy marketing success, the Voltas AC last summer attained the No 2 position in the air conditioner market with its newly-launched Vertis model. Behind that success lay a winning combination: the right technology-led features, market-sensitive pricing and smart consumer- friendly positioning - ACs with IQ. There is every indication that this combination has begun to transform the present image and future prospects of the entire brand.
The unique stamp of world-beating technology is embodied in the tag 'Intelligent Qooling'. No idle claim, it stands for a host of microprocessor- controlled features, such as automatic switching to economy mode to save on power. An air filter that adjusts its performance to the AC's with I.Q. particles in the air. A programmable timer for pre-planned shut-down and switch-on. And regulated air flow that reaches to every cranny of the room. For decades, the household and retail segment had perceived Voltas as a solid, dependable and well-engineered range of ACs - but not contemporary, not in line with the needs of today’s savvy and demanding market, not in tune with the times.
Vertis changed all that. The result of a 'manufacturing only' JV with Fedders International, the US leader in air conditioners, the model offered the consumer the latest technologies and styling at the most affordable pricing, perceived as ‘American quality at Chinese prices’. It was a new look, a new image, and almost certainly the start of a new era for the brand. It was also a vindication of the decision to shift the focus from the institutional to the household and retail segments, and make all the right moves in the process.
A winning alliance Universal Cooling Private Ltd (UCPL), the Voltas-Fedders JV, brings together Voltas' established repute, substantial Participants at the Partnership customer base, decades-long experience, and extensive sales Summit held in Pune and service network, with the breakthrough technologies of Fedders.
The JV's primary focus is on achieving international quality and technology standards, yet at a level of cost- effectiveness that would allow reasonable pricing, with the Indian consumer in mind. To this end, Voltas' ISO9000 certified Dadra unit was transferred to the JV, and the V-for- victory range was rolled out with IT-driven efficiency and all the economies of scale, bearing the stamp of Fedders' state- of-the-art technologies and product designs.
Buyer's delight As the market reaction demonstrates, it's a range that has the appropriate combination of features, tailored to the expectations of today's consumer. In the flagship Vertis brand, these include microprocessor control, power-saving mode, air filters, timer, and cooling power that extends to every nook and cranny. And though the range's success has been labelled the 'Big Bang' in the marketplace, the AC itself is uncannily quiet.
A team from Fedders International Inc., USA, at the Dadra Plant
Intelligently international Voltas scores a big bang retail triumph with its world-class Vertis ACs ......
Topping the shopping experience Once out of the factory and on its way to the buyer's window, the series of right moves continues. An on-going effort is under way to upgrade sales, service An exciting inititative is the Voltas Dome and logistics. Huge investments have been made in boosting the dealer infrastructure, training dealer personnel, and escalating the sheer numbers of those in the dealer ranks. The innovative 'Voltas Domes' at showrooms in major cities not only catch the eye, but impart thrills and chills in a first-hand experience of Vertis at work.
As a consequence, the model has been moving off the dealer inventories as briskly as it's been rolling out of the Dadra unit.
Promotion with IQ The personality and profile that's been conferred on the range is also in tune with the times. The image is youthful Manufacturing efficiencies have and vibrant, without stinting on a hard-sell of the features lowered the cost of offered. 'ACs with IQ' is the Voltas air conditioners centerpiece slogan of the multi- media multi-crore advertising campaign, capturing the user- friendly intelligence of the product’s performance and interface.
The service plus Adding to consumer appeal is the fact that Vertis is supported by the well-known 'Crystal Care Service', which has already helped build trust and confidence in over one million customers, a feat unparallelled in the industry.
The servicing is not only for a lifetime, but organised by a nationwide network of Prompt service through Call Centres service centres and highly trained engineers, quick to react to service requirements channelled through a computerised system. For quick response, a Call Centre system is in place at Mumbai and Delhi, and being extended to many others. It's a customer-care system as efficient and user-friendly as the product that it supports.
Product, pricing, positioning and service - a winning hand. For the Cooling Appliances team, it’s a foretaste of future triumphs, a concerted thrust into the consumer market that brings Voltas a long way towards undisputed leadership in this sector India's premier air conditioning and engineering services provider
Voltas Limited 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's strengths lie principally in
• the design and manufacture of industrial equipment • management and execution of air conditioning and public works projects • sourcing, installation and servicing of technology-based systems • representation of global technology leaders, serving diverse industrial sectors and applications.
Operations
Voltas' 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 &
India's premier air conditioning and engineering services provider (contd...)
Awards
• 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.
Technological leadership
As a leader in technology, Voltas has made consistent efforts to bring customers the latest and best technologies across varied domains. The Company has entered into collaborations and technical tie-ups with world leaders so as to keep pace with global developments. 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 vapour absorption machines • MIDEA, China, for Variable Refrigerent 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 Representations
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
Nation-wide facility network
The Company has its head office in Mumbai; zonal headquarters in Mumbai, Kolkata, New Delhi and Chennai; territorial offices at Ahmedabad, Bangalore, Chandigarh, Hyderabad, Jamshedpur, Lucknow, Pune and Kochi; Overseas offices in Dubai, Abu Dhabi (UAE), Hong Kong, Kingdom of Bahrain, Singapore and Qatar; and factories at Pantnagar (Uttaranchal), Thane (Maharashtra) and Dadra (Union Territory).
India's premier air conditioning and engineering services provider (contd...)
Community Development and Environmental Protection The Company has consciously laid emphasis on corporate social responsibility and also on ecological and environmental protection. Exemplary corporate citizenship is demonstrated in numerous social upliftment projects, whether independently undertaken or in support of the Tata Council for Community Initiatives.
Subsidiaries
Indian:-
• Universal Comfort Products Limited • Rohini Industrial Electricals Limited • Simto Investment Company Limited • Auto Aircon (India) Limited
Foreign:-
• Metrovol FZE, Dubai • Weathermaker Limited, Dubai • VIL Overseas Enterprises B.V., Netherlands • Voice Antilles N.V., Netherlands Antilles • Saudi Ensas Company for Engineering Services WLL, Saudi Arabia
Joint Ventures
• Universal Voltas Air-conditioning & Refrigeration Co., Abu Dhabi, UAE • Lalbuksh Voltas Engineering Services & Trading Company LLC, Ruwi, Sultanate of Oman • Universal Weathermaker Factory LLC, Abu Dhabi
VOLTAS-Vertis0.8Ton Rs 11,000 • 0.8Ton At 1stores • 940Watts • 9.6(EER) Price History
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VOLTAS-Vertis0.8TonPremium Rs 11,000 to 13,800 • 0.8Ton At 3stores • 940Watts • 9.6(EER) Price History
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VOLTAS-Vertis1.0Ton Rs 13,750 to 16,000 • 1Ton At 5stores • 1290Watts • 9.3(EER) Price History
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VOLTAS-VertisPremium1.0Ton Rs 13,900 • 1Ton At 1stores • 1290Watts • 9.3(EER) Price History
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VOLTAS-Vertis1Ton (split) Rs 14,400 to 21,500 • 1Ton At 6stores • 1410Watts • 8.5(EER) 24% 24
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VOLTAS-1.5TonVertis Rs 16,200 to 19,000 • 1.5Ton At 13stores • 1850Watts • 9.7(EER) 1% 1
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VOLTAS-1.5TonVertisGold Rs 16,500 to 19,500 • 1.5Ton At 5stores • 1850Watts • 9.7(EER) 2% 2
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VOLTAS-1.5TonVertisPremium Rs 16,500 to 19,800 • 1.5Ton At 8stores • 1850Watts • 9.7(EER) 3% 3
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VOLTAS-2.0TonVertisGold Rs 20,500 to 34,000 • 2Ton At 8stores • 2650Watts • 9.06(EER) 14% 14
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VOLTAS-Vectra1.0Ton Rs 20,900 to 21,000 • 1Ton At 3stores • 1410Watts • 8.51(EER) Price History
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Different Tata companies with different objectives embraced the singular path of innovation to achieve breakthroughs and triumphs. Perspectives on how innovation worked wonders for Voltas
It was seven years back that Voltas was afflicted with the chills. The engineering and air-conditioning giant, a pioneer across its industry segment, had reported a loss of Rs 16.82 crore and the warning bells were ringing furiously. Something had to give.
The fact that Voltas had to its credit a variety of firsts in India — the first room air- conditioner, the first integrated plant, the first slit air-conditioner, the first mini water cooler, the first full range packaged air-conditioning unit, the first microprocessor controller, the first screw chiller, the first indoor air quality systems — counted for little in an environment where the rules were changing so fast that the company could hardly keep up.
"Our problems were typical: excess manpower and loss-making business units," recalls Anil Gole, vice president, human resources and administration, Voltas. "We had more than 10,000 employees and our fingers in several pies, many out of sync with our core competence." Engineering a turnaround would entail restructuring the company and realigning its human resources. Simply put, that meant getting out of peripheral businesses and reducing the size of its workforce.
Voltas hived off its the white-goods division to a joint venture with Electrolux and the chemicals (manufacturing) division was sold to Rallis. It also set up a property cell to make optimum use of its real estate assets. These and other measures helped in plugging the company’s leaking finances and it also reduced staff numbers. But more needed to be done on the latter front.
Litmus test One of the main challenges Voltas faced was with its unionised employees. They accounted for almost 80 per cent of the company’s total wage bill, some 15 per cent higher than its closest competitor. Resolving this issue called for innovative strategies, one of which was called ‘zero budget’, under which departmental heads had to identify employees without whom their unit could not function.
This exercise resulted in almost 1,000 employees being encouraged to avail of a voluntary retirement scheme (VRS). That was an important step in a process that has seen Voltas reduce its staff numbers to 3,600. Voltas recognised the need to boost employee morale. Previously it had followed a policy wherein there was internal parity in compensation levels across all divisions, irrespective of the industry where they operated. The company decided to switch to a compensation structure that was more in tune with the market. "In 1996-97, everybody here had a performance rating above 90 per cent, yet we registered a loss," says Mr Gole. "Things had to be set right."
Entry-level salaries were hiked to attract the right kind of talent. Concurrently, compensation was correlated to performance and cash awards were introduced for the best employees. The last measure was clearly defined: 33 per cent for individual performance, 33 per cent for the division’s performance, and 33 per cent for the company’ performance. This went a long way to improve motivational levels. "What we have done is decentralise decision making. It is all but empowering people to become leaders," says Mr Gole.
Weaving the web Compensation was but one component of the new Voltas way of functioning with its people; another was transparency. In 1999, it became one of the first companies in India to introduce online appraisals. Every single employee was encouraged to set his or her own goals and assign them values. These were aligned with the company’s vision and business goals and uploaded onto Voltas’ intranet. The goals were just a password away. It constantly reminded them of their unmet targets and the company’s vision.
Voltas then decided to go one step ahead. All salary processing tasks, leave encashment details and tax calculations were done online through a ‘human resource system’. This facility is accessible to everyone, management as well as blue-collar employees, through a unique password. The innovative use of information technology made the whole process paperless "We saved Rs 45 crore in six years through this process," says M. M. Miyajiwala, executive vice president, finance, Voltas.
The company’s finance and commercial department now publishes its accounting standards, internal accounting and finance policies and procedures online. It has its own strategic business plan, a key plank of which is improving the knowledge base of Voltas employees through continuous training, group activities and problem-solving exercises. This is the first finance function to be ISO certified within the Tata Group. The coolest one With its finance and human resources departments put in fine fettle, Voltas turned its attention to its cooling appliances business division (CABD). While the company continued to be a leader in the air-conditioning industry, the changing dynamics of the air-conditioning market had ushered in a new order in this segment. Previously perched at number one, the company had slipped to number five. Research showed that the Voltas brand was perceived to be an old and jaded. A complete overhaul of the branding communication was the need of the hour.
Consumers were looking for more interactive features in their air-conditioners and these were only available in the premium range. So Voltas launched Vertis, the first popular segment brand to carry interactive features of the premium sector with no increase in cost. Manufactured in association with the US-based Fedders International, the world’s biggest air-conditioner manufacturer, Vertis proved to be a breakthrough idea.
The advertising campaign for Vertis targeted young couples, with the gist of the message being to buy American technology at Chinese prices. "Vertis had a lot of additional features and was a replica of what was being sold in the international market," says K. J. Jawa, vice president, operations, Voltas. The company built on this success by launching a product at every price point within the brand umbrella of Vertis.
Small is big There was more to the Voltas push in air-conditioners than Vertis. The company understood that it needed to think out of the box because while televisions and washing machines were flying off the shelf, the air-conditioning market was stagnating despite falling prices. Voltas commissioned business strategist Rama Bijapurkar to study the market and she concluded that if monthly bills for air-conditioners could be brought to less than Rs 1,000 the overall market would triple to 3 million units annually.
"Two factors were hindering the growth of the industry: initial and recurring costs," says Mr Jawa. "We worked with our design team and our collaborators to introduce an innovate product that could counter these factors." The result was an expansion of the Vertis range to include air-conditioners of 0.8 tonnes and 0.6 tonnes, the second for an eye-popping price of Rs 9,999. The 0.6 version adds up to the monthly electricity bill by just Rs 500 if run every night.
The marketing campaign for the new entrants sold the idea of making air- conditioners a reality for every Indian consumer. "We are looking at specific markets," says Mr Jawa, "like the coastal belt — where coolers are useless and which anyway accounts for 70 per cent of our air-conditioning business — and flats across emerging townships."
The new Vertis models have taken the market by storm, with the company selling more than 13,000 units in the first six weeks following their launch. "No other company thought of breaking the price barrier; our idea has paid off," says Mr Jawa. "We are the No 2 brand in the country, a rise of three places. Our volumes have grown almost 300 per cent in the last three years."
Sensible solutions Another Voltas innovation has been the ‘rural’ refrigerator, which starts at Rs 5,000. This range has been launched under the Coldcel brand in 11 markets and the response has been good. Additionally, Voltas recently launched a sub-brand, Coldcel-Teenie Weenie, which is aimed at the younger age group in metros and small towns. The Coldcel range has been specially designed to withstand high voltage fluctuations and frequent power cuts.
Voltas’ innovation equation extends to its Sensicool air-conditioning systems for telecommunication centres and other places where the heat load is heavy. Previously, these places used several split air-conditioning models, which meant increased power loads. The Sensicool range, with its state-of-the-art microprocessor systems, is specifically designed to handle high levels of heat generation and is best suited for unmanned telecommunication shelters.
Resting on its laurels is not an option for Voltas, which is now working on a split air-conditioner with a tonnage of under one (at a price of less than Rs 15,000). The company is also mulling the option of entering the frost-free refrigerators segment. Having banished the chills, Voltas is now confronted with the far happier prospect of staying hot in an ever-expanding market.
Comfort zone
The company’s AC&R (air-conditioning and refrigeration) division has many feathers in its cap. It enjoys a leadership position in offering customised cooling solutions across all industries in India.
The VSCADA (Voltas Supervisory Control and Data Acquisition) is an intelligent and integrated system that can control, monitor and optimise the performance of the air-conditioning systems in a building from a centralised control console. "We were the first to make it a standard feature product," says R. Amarnath, general manager, service & packed systems, AC&R Business Group, Voltas.
The technology was developed in-house by the company. The swank Blue Dart corporate headquarters at Mumbai is a building that boasts this sophisticated system.
Voltas is also the only company in the country to have introduced indoor air quality systems. This technology through controlled ozonised injection eliminates odour and pollutants in the air circulated. The ozone helps and pollutants in the air circulated. The ozone helps remove fungi such as mould, mildew, spores and dust mites without the use of chemicals, and even works out cheaper than pumping in fresh air.
The Voltas Engineered Ozone Systems (VEOS) is particularly valuable to spaces that are overcrowded or buildings with poor ventilation or polluted surroundings. The company also offers a duct cleaning system, which employs a robot for the task. Additionally, this state-of-the-art machine gives users a reading of the quality of the air they breathe. Some of the other innovations that Voltas is proud of are the Screw Chillers, energy efficient and compact compressors, Process Chillers, and Intellisys range of microprocessor-based packaged and ductible split units.
All these ideas have risen from the company’s tradition of constant customer feedback. As M. Gopi Krishna, general manager, operations and new business, AC&R Business Group says, "We would like to be seen as frontrunners in the business of setting trends."
Kochi: Voltas Limited, India's premier air-conditioning and refrigeration company, has introduced in the Kerala market a new brand of air-conditioners, Vertis, which, the company claims, offers American quality at Chinese prices.
Vertis, the 21st century's first international range of state-of-the-art air- conditioners, is the product of Universal Comfort Products, Voltas' joint venture with the US-based Fedders International.
Launching the new product in Kochi, Voltas managing director Ashok Soni said the Vertis range is a reflection of Voltas' commitment to provide its customers with latest-technology products at affordable prices. "With the launch of Vertis, the company, having a turnover of Rs 1,000 crore, plans to strengthen its image and trust with retail and household customers."
R S N Raju, regional vice-president of Voltas' cooling appliances business division, earlier told a news conference that the new product is the first step in its bid to regain a leadership position in the air-conditioners segment. "Vertis is not only of international standards but also compares well with the finest and the latest technology in the world. It is energy-saving, with a payback period of two years."
Voltas has bagged a Rs 550-crore market-share of the Rs 2,000- crore air-conditioners market in India, said S N Tripathi, executive director and COO of the Unitary Products Business Group, who was also present at the news conference. "The company expects a 15-to- 18 per cent growth in the Indian market. The new range will facilitate Voltas' foray into the residential segment through retail channels." Voltas, which is part of the Rs 41,000-crore Tata group, has plans to upgrade its existing manufacturing facility at Dadra at a cost of Rs 40 crore. Soni said this facility will be subsequently enhanced to manufacture the Vertis range.
Voltas general manager (communications) B N Garudachar said the company expects a 10-to-12 per cent market-share growth in Kerala.