Volta’s air Conditioner business

MUMBAI, January 22: Voltas-AIG, the joint venture between the diversified Tata group company and Air International Group of Australia, has bagged the mandate to supply air-conditioners for the Telco small car.

The assignment, which the venture won against stiff competition from both leading Indian and multinational companies, involves designing, engineering, testing and manufacture of car air-conditioners.

As Telco's small car project envisages annual production of 60,000 cars, expandable to over 1,00,000 cars at a later stage, the order is likely to turn into a major money-spinner for the venture, company sources said.

Voltas, which is one of the three major players in India in room air-conditioning, packaged units and central air-conditioning, had forged the venture with AIG to make an entry into transport air-conditioning, in which the Australian company is a major player.

The financial outlay of the project is around Rs 40 crore, with the equity portion split equally between the two partners. While AIG will provide technology inputs and training of personnel, Voltas will be responsible for marketing and over-all management of the joint venture. The scope of the joint venture, sources said, includes design, manufacture and distribution of air-conditioners, heating and ventilation systems for rail coaches, light and heavy vehicles. It also includes heavy-duty air-conditioning units for mining, heavy industry processes and defence shelters. The joint venture has already bagged a major order from the Indian Railways for supply and installation of roof-top mounted air-conditioners for its coaches. For increased business, the venture is counting on AIG's strong international clientele, most of whom are now present in India. The list includes General Motors, Ford, Mitsubishi, Mercedes Benz, and Daewoo among others.