Voltas to Form JV with Atomberg to Manufacture AC Compressors.

Leading air-conditioner maker Voltas Ltd has signed a binding term sheet with Atomberg Innovation Ltd to establish a joint venture to manufacture high-efficiency compressors for room air-conditioners and related compressor components.

The proposed joint venture will set up a compressor manufacturing plant in Chennai, adjacent to Voltas’ existing air-conditioner manufacturing facility. The plant is expected to have an annual capacity of about 2.8 million units.

“We are in the initial stages and details regarding capex and other aspects are in the process of being worked out,” Mukundan Menon, Managing Director, Voltas Ltd, told businessline.

Voltas will serve as the anchor customer for the joint venture, while the facility will also have the flexibility to supply compressors to other air-conditioner manufacturers, Menon said.

The development comes as Voltas sees strong momentum in its room air-conditioner business. The company recorded 45 per cent volume growth in the segment during the June quarter.

Menon said the proposed plant will strengthen Voltas’ manufacturing capabilities while creating capacity to cater to demand from other industry players.