Voltas, which sees its biggest profits from air conditioners, could hike their prices by about 3-4%, as stated to a few analysts. Voltas, an organization that is a part of the Tata Group and also the leading air-conditioner producer in India, arrived at this conclusion in a bid to compensate for the increasing material costs. However, the organization also states that it is waiting for an appropriate time to take this step, and that would be when there is an increase in demand for air conditioners in the market.
However, considering India’s strenuous relations with China at present, there is a high chance that the Indian government may inflate import duty prices. This scenario could only prompt Voltas to accelerate the price hike process.
Voltas claims that it needs to increase air conditioner costs by at least 3-4%. That is because the raw material would have to be procured from somewhere locally. All of these details have been revealed in the analysis conducted by IIFL Securities, which released a report on December 4.
Voltas performance in the very recent quarter seems to have exceeded the expectations of many when its results revealed that it had performed way better than its competitors like Whirlpool and Bluestar.
During Q2, Voltas reported an overall growth of about 14% in terms of its volume production. That was attributed largely to the growth in the volumes of air conditioners specific to rooms, refrigeration products for commercial operations and air coolers. Going by the individual counts, the production of air conditioners increased by 1%, and refrigeration products increased by 20% and air coolers increased by 28%. The increase in the volumes of each of these products contributed to the overall volume growth of Voltas.
Voltas is very positive about its position within the market, even after the price increase scenario. It is very confident of going past its competitors, especially when it comes to air conditioners. Moreover, during festive times, the demand for these products would increase, bringing in lots of profits for the company.
The IIFL report mentions that “medium-term outlook is impacted by the subdued awards pipeline, even as Voltas remains cautious about booking new orders.”
A step beyond refrigeration
Now, with the arrival of COVID-19 vaccines anytime soon, Voltas is quite keen on offering high-quality refrigeration solutions. To ensure that there are no glitches in the vaccination supply process and to guarantee the vaccine effectiveness, the home appliance manufacturer is looking forward to bringing in servo stabilizers, equipment for storing data related to temperatures as well as lots of power solutions. All of these solutions would facilitate the vaccine distribution process.
Apart from the products and solutions stated above, Voltas would also be providing certain units to the Indian government within which items can be stored and maintained at low temperatures. The company is doing every bit possible that can go a long way in helping the government to carry out a smooth COVID-19 vaccination drive. The vaccines are all set to arrive sometime during early next year.
A Volta’s official went on to state that “We are hopeful to be able to contribute to the building of the cold room supply chain for the vaccine distribution as well as through the development of quality chest freezers.”
The COVID-19 vaccine market would be good from a growth perspective, considering that this situation could be valid for the next few years.