As AC sales increase in India, Voltas ranks No. 1 among AC companies. For the fiscal year ending March 2022, Voltas’ sales jumped 160 percent. Sales of Voltas ACs, especially for homes, increased by 170 percent. Voltas AC, a leading brand in India, has a market share of 25.4%. Let’s look at the story of the resurgence of the Voltas company in such a strong position.
Voltas was at the forefront of air conditioner production in India with uniqueness in the early days. After 1991, Voltas faced many competitors, such as Samsung and Whirlpool. Voltas has been selling a lot of old-fashioned window ACs. In this context, the split ACs of Samsung and LG have been very popular among Indians.
Thus over the next 10 years the Voltas suffered a major decline. Voltas, which had a 40 per cent share of the Indian AC market, had a mere 6 per cent market share in 2001. That is, if 100 ACs were sold in 1991, that would be 40 Voltas AC. That’s up from just 6 of the 100 ACs sold by Veldas AC in 2001. The remaining 94 percent of the market was occupied by other leading companies.
It was only then that Voltas began researching why its AC sales were declining. It was in this study that many new information came to light. The Indian people and the AC market came to be seen to be changing on a large scale. Beyond how AC works, a number of subsequent market studies have been conducted on how the AC machine works and how the concept of Voltas AC reaches the masses. In it, it was revealed that many companies are at the forefront of business technology than Voltas. That is, the situation was such that people would call Voltas’ Windows AC AC.
Following extensive market research, Voltas entered into an agreement with Peters International, the world’s leading AC manufacturer. The company’s extensive production capacity, factory, etc. largely lent itself to Voltas. This brought with it many new options such as Purification Builder and Economy Mode on the Voltas AC. Not only this, Voltas was forced to reduce production costs. This is because a market study has revealed that most people in India can afford to buy an AC for as little as Rs 15,000.
So the Voltas plant moved from Thane to Dadra. The government provided tax exemption for products at the Dadra Industrial Park. So Voltas relocated the plant because it could reduce AC prices by offering this tax deduction to the public.
Next, Voltas’ global partners produced 0.6 tonne ACs in Malaysia, Taiwan and China. The cost was about 10,000 Indian rupees. So Voltas came up with the idea that if it introduced a small type of AC for 10 thousand rupees, it would be possible to get people to buy air conditioners and buy AC. With the advent of small AC with this new strategy the people who wanted to buy aircooler were able to buy AC.
Since then, minimum power consumption has been the expectation of Indians. A market study has revealed that ACs have the potential to consume electricity only if the average Indian consumer in India has less than Rs 1,000. Voltas therefore realized that ACs with lower power consumption would be more welcome.
Voltas’ advertisements were designed accordingly. Voltas AC was advertised as a product that even retirees could afford. Not only this, advertisements like Intelligent Cooling attracted a large number of Indian consumers to Voltas. Inverter AC also provided new opportunities for Indians. Similarly in the minds of Indians AC is seen as one for the summer season. There were ads on the scale of AC to deal with the scorching summer. But Voltas changed this and advertised it as the AC needed for any climate.
As a result of these changes, Voltas sales increased from 6 percent in 2001 to 18.3 percent in 2012. LG, which was in the first place, went to the 2nd place in the market. LG’s market share was 17.7 percent. Since then, Voltas has continued to be number one in the Indian AC market since 2012.
Voltas’ share of the Indian AC market has increased from 18.3 per cent in 2012 to 25.4 per cent in 2022. That means Voltas AC is one of the 4 ACs sold in India. Although the AC of various companies has come to India in the last 10 years, Voltas continues to be the AC that has captivated the minds of Indians. The main reason for this is that Mati thought in a timely manner and made plans knowing the needs of the people.
> This is an excerpt from the ‘Hindu Tamil Direction’ premium article. Read Useful Premium Articles Everyday> Premium Articles
> Read Premium Articles & E-Paper – Digital Subscription Plans