Voltas on February 10 said it will invest over Rs 500 crore to set up a manufacturing facility in Tirupati, Andhra Pradesh. “This facility will initially manufacture and assemble air conditioners and related cooling products with a total capacity of more than 1 million units to start with,” the company said in a BSE filing.
Voltas said it aims to create technologically advanced products which are expected to start rolling out from the second half of 2020.
The company plans to invest over Rs 500 crore while putting together an OEM (original equipment manufacturer) base for home appliances, and simultaneously creating local employment opportunities in the region.
The manufacturing facility, spread over 65 acres, will be one of the first cooling appliances units in Andhra Pradesh. The choice of Andhra Pradesh as the destination for the new manufacturing unit was due to the state’s ease of doing business and growing focus on ‘Make in India’, it said.
The chosen location provides dual benefits of superior market access and cost-effective connectivity via road and port, it added. Voltas will cater to the south, west and east markets through this manufacturing facility.
“We are delighted to have laid the ground for the Voltas manufacturing plant here in Tirupati. This facility helps us in expanding our manufacturing capabilities while increasing our reach in the Southern market,” said Pradeep Bakshi, managing director and CEO, Voltas Ltd.
Voltas, among the top ten companies within the Tata group, provides air conditioning and engineering solutions.―Money Control