Voltas set to enter fridge market after a decade
After gaining the leading position in the Rs 7,000 crore air conditioner market, Tata Group firm Voltas is looking to re-enter the refrigerator market in 10-12 months time, said sources within the company. Rachit Vats reports.business Updated: Jul 20, 2012 01:03 IST
After gaining the leading position in the Rs 7,000 crore air conditioner market, Tata Group firm Voltas is looking to re-enter the refrigerator market in 10-12 months time, said sources within the company.
Voltas Ltd, the Tata Group's engineering and air-conditioning solutions firm, is looking at expanding its brand portfolio and play to its strengths in the cooling segment. The company used to market its Voltas brand of refrigerators before it sold its business to Electrolux in 2000 under an agreement that the company will not sell refrigerators directly in the market till 2006. At present it markets only air conditioners.
"We have the required expertise in the segment and are seeking approvals to re-enter the market," said the source on condition of anonymity. The executive refused to give a timeline or the stage at which the plans have progressed.
"In the last five years our focus has been on strengthening the retail presence and building the Voltas brand, the time is right to scale up our brand offerings," said the source.
The Koreans players LG and Samsung currently dominate the Indian refrigerator market.
According to GfK-Nielsen India, Voltas grew at 32% CAGR (compounded annual growth rate) over the last five years to capture 18.3% market share of the AC market in May by volume terms.
LG's marketshare in multi-brand outlets — a key sales channel that accounts for almost 90% of AC dealerships —stood at 17.7% for the same period.