Voltas, Ardutch to establish their durables plant in Sanand, Gujarat

Air conditioning company Voltas said Voltbek, its joint venture with Turkey’s Ardutch, will set up its first factory to produce refrigerators and washing machines in Sanand in Gujarat.

The two companies had announced a joint venture agreement a year ago.

“Voltbek has today laid ground to start construction of their first manufacturing facility, spread over 60 acres, in Sanand, an upcoming industrial hub in Gujarat,” the Tata Group company said.

“This facility will be manufacturing Home Appliances that include refrigerators and washing machines.”

The move is likely to help Voltas diversify from being largely an AC company into something that is also present in other durables segments.

Pradeep Bakshi, Managing Director & CEO, Voltas said the JV will help the company strengthen its presence in the home appliances sector.

“Voltbek will leverage Arçelik’s global expertise in setting up large, modern, state-of-the-art manufacturing unit, quality and R&D labs and International benchmarking processes and Voltas’s strong brand presence, and country wide sales and distribution network,” Voltas said.

The new plant has been established in the same city as that of Nano, the small car from Tata Motors.

“The choice of Gujarat as the destination for the manufacturing unit was due to State’s ‘ease of doing business’, and ‘good governance’,” the Tata Group company said.

Most of the durables manufacturing in India currently takes place in Haryana, Maharashtra and Tamil Nadu.

Voltbek’s manufacturing facility will be one of the first white goods appliances unit in Gujarat. The company said the plant will create a base of equipment manufacturers catering to the home appliances industry in Gujarat and boost employment opportunities.

Quoting industry reports, the company said the durables market in India is slated to grow at 10–12 percent per year.

“During the last 10 years, the Indian Major Domestic Appliances market grew by nearly 9 percent, surpassing the overall 3 percent growth of global white goods market,” said Voltas.

At present, Voltas makes coolers, water dispensers, water coolers and commercial refrigeration products.