Docslide.us Voltas Presentation

7/25/2019 Docslide.us Voltas Presentation

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CASE PRESENTATION

VOLTAS LTD.


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Voltas a part of TATA GroupIt was established in 1954 in Bombay as aJoint enture between !"s Vol#artbrothers $ TATA %ons &td'195() The *ompany went publi*'19(1) Voltas mar#eted imported produ*ts'19(+) ,irst fa*tory was established tomanufa*ture A-s $ refri.eration

e/uipment'&ater on many plants were set up tomanufa*ture *ompressors0 *ondensers0*hillers0 an*illaries0 refri.erators et*'

IT23-TI3


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BUSINESS ORGANIZATION


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3er the years Voltas tied up with %A)based unham Bush $ %tandardrefri.eration *ompany

Japan based 6ita*hi &td'To se*ure a**ess to new te*hnolo.ies in air*onditionin. $ refri.eration mar#et'

By 1997 Voltas diersi8ed etensiely inindustries li#e ,ood $ beera.es0 for#lifttru*#s0 *hemi*als0 pesti*ides0 en.ineerin.seri*es et*''0

In 199()9: the mar#et shrun# by 9;


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In 199()9: *ompany re*orded its 1steer lossof 1:7 million $ also failed to pay diidend'The pri*e of sto*# *rashed from 2s'>>5)2s'>1'

%o in 199: ! !unshi was repla*ed byawshir ?hurody'A hu.e restru*turin. pro*ess was followed

whi*h inoled all the businesses of Voltas0 $its 8nan*es $ human resour*es

It was de*ided that the *ompany would fo*uson its air)*onditionin. $ en.ineerin.businesses'This eer*ise 8nally helped Voltas improe its

pro8tability'


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One core management team started to anal!et"e #$a%$l$t o& eac" %'s$ness

Incom(etent %'s$ness $dent$& to %e sold

A$r cond$t$on$ng and Eng$neer$ng )ere t)o (ro*tma+$ng %'s$nesses

Idle assets )ere e$t"er leased or )ere sold


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CONTINUE

In ,-- Re&r$gerator man'&act'r$ng 'n$ts )ere sold toElectrol'/

Real$!ed aro'nd .0 %$ll$on &rom sale o& $ts %'s$nesses

Voltas gro'(ed $ts rema$n$ng %'s$ness $nto segments

To red'ce cost Voltas started to red'ce $ts )or+ &orceEnco'raged ne) talent or $deas


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REVENUE O1 VOLTAS


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VOLTAS IN ,---


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NEW AVENUES FOR GROWTH

THE ELECTROMECHANICAL BUSINESS

THE UNITRY COOLING

BUSINESS


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T2E ELECTRO34EC2ANICALBUSINESS

Ver s'ccess&'l )or+$ng $nternat$onall also

Voltas Ind$a l$m$ted 'se to (rod'ce t"ese (rod'cts

In ,--0 VIL merged )$t" Voltas

O(ened o5ces $n man ot"er co'ntr$es

Ta+$ng (ro6ects $n Ind$a as )ell


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ELECTRO4EC2ANICAL BUSINESS,--73-8


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T2E UNITAR9 COOLING BUSINESS


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C2ANGED SCENARIO

Bet)een ,--03 ,-- Ind'str gro)t" ,:;

E/c$se d't on Ac red'ced &rom 00-; to 8-;

Im(ro#ed Ind$an econom$c cond$t$on

4an ne) entr$es $n reta$l AC mar+et

B ,--0 #oltas came do)n to :t"(os$t$on )$t" 8.


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Big Bang Strategy

CHANNEL AND SERVICES

NEW PRODUCTS

BRAND BUILDING

SUCCESS


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A B's$ness Strateg

To re$ncarnate e#er &acet o& A$r Cond$t$on$ng %'s$ness=(rod'ct> c"annel> sstems> ser#$ce> costs and %rand?

To $m(ro#e marg$ns

To stand aga$nst com(et$t$on &rom ne)l entered 4NCs $nAC mar+et

CONTD..


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What to do

Increase Price

Reduce cos


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NE@ PRODUCT


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BRAND BUILDING


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C2ANNEL AND SERVICE


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T"e B$g Bang strateg )as #er s'ccess&'l.T"e com(an ran+$ng $n t"e reta$l AC mar+et

&rom No.: to No., )$t" $n a ear.

Voltas reta$l AC :-; o& $ts sales comes &romt"e $nst$t't$onal mar+et.

Voltas la'nc"ed a ne) range o& AC &orm$ddle $ncome "o'se"olds.

Voltas la'nc"ed se(arate mar+et$ng $n$t$at$#e&or eac" state $n Ind$a.

Voltas %'$lt a ne) man'&act'r$ng (lant $nUttaranc"al at a $n#estment o& 0., m$ll$on.


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!ar"et Share o# Vo$ta% Retai$ AC

@ear >771 >77> >77+ >774 >775 >77(

4ar+etS"are

8.


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T2E OUTLOO

R$s$ng $ncomes $ncreased t"e demand &orACs $n Ind$a.Voltas (lanned to set '( a researc" center

&or (rod'ct de#elo(ment.

Voltas also $ncreased $ts e/(orts o& ACs.T"e amendments $n t"e AP4C Act $ncreased

demand &or re&r$gerators.Voltass elctromec"an$cal %'s$ness and t"e

reta$l> enterta$nment so&t)are sector s"o)edstrong gro)t".T"e )ater treatment %'s$ness )as also

e/(ected to %e a gro)t" &actor.


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T2AN 9OU

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