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1. VOLTAS
Opportunities
Invest.Deliver.Grow

2. CORPORATE BACKGROUND
 Voltas is a Tata Group Company.
 Incorporated in 1954, Voltas is India’s largest air conditioning
company and one of the world’s premier engineering solutions provider
and projects specialist.
 Voltas focus is to drive value through smart engineering and provide
best-in class business solutions to consumers and industries.
 Voltas operations are classified under three major business
segments: Unitary Products, Engineering Projects, and Engineering
Products and Services.
 Voltas distribution network covers an enviable 15,000 touch points
in India.

3. LEADERSHIP TEAM

4. PILLARS

5. BUSINESS REACH

6. MOAT Of THE COMPANy
Undisputed Market Leader: India’s
No 1 Brand of Air Conditioner.
More than 24% market share in RAC.
HIGH BRAND
RECALL
AfTER SALES
SERVICE
WIDE
DISTRIBUTION
NETWORK
DEALER MARGIN
OffERED
HIGHEST
RANGE Of
PRODUCTS

7. SHAREHOLDING

8. CyCLE Of COOLING INDUSTRy
Cooling Industry(AC, Refrigerator, Cooler
and Fan) heavily dependent on Q1 and Q4.

9. BRAND JOURNEy

10. INDUSTRy ANALySIS

11. KEy HIGHLIGHTS ON AC INDUSTRy
ACS, AIR-COOLERS AND fANS COMING UNDER ESSENTIAL
PRODUCTS:
 The Kerala government has declared ACs as essential
products, resulting in some pick up in secondary sales.
 AC association and other industry bodies of Gujarat have started
approaching the state government to include ACs in essential
services.
EXPANSHION PLAN:
Voltas is considering setting up a new manufacturing plant in
South India for AC and commercial refrigerator segment.

12. WORLD ROOM AC DEMAND ANALySIS
 In China, AC penetration in urban areas grew from ~5% in 1995 to over
100% in 2008.
 The current Indian room AC penetration at 4-5% stands at where China
was in the 1990s.

13. CONT…

14. CONT…

15. AC ELECTRICITy CONSUMPTION IN PERCENTAGE

16. SEGMENT DETAILS

17. UNITARy COOLING PRODUCTS
OUTLOOK AND OPPURTUNITIES
 Going forward, demand for air conditioners will be driven by
first-time users, replacement/second buy users and high-end
buyers, who look for exclusive additional features.
 At the same time, strong rural demand is anticipated due to rising
temperatures, increasing disposable incomes and aspirational levels.
Moreover, demand will be pushed by the environment friendly and greener
gas products.
THREATS
The increasing cum aggressive competitive environment along with uncertainty
on currency, duties and commodity prices may impact pricing, resulting in
lower margins. However, improved focus on value engineering, cost
innovation, customer service and logistics should help Voltas sustain its
market dominance.

18. ONLINE: RAC KEy BRANDS AND SKU

19. VOLTBEK HOME APPLIANCES PRIVATE LIMITED
(VOLTBEK)
 The 50:50 Joint Venture Company (JV) between Voltas Limited and
Arçelik, launched its product range in September 2018.
 Voltbeck launched the product with ‘Made for India’ features such as the
‘30 days Store Fresh’ for Refrigerators and ‘26 Stain Remover’ for
Washing Machines.
 The newly launched brand is steadily making progress in increasing its
distribution reach to more outlets, particularly, in Tier-II and Tier-III cities.
 In refrigerators, four brands collectively have 75%-80% market share,
namely, LG, Samsung, Whirlpool and Panasonic. Voltas-Beko aims to
directly compete with them with its mass market pricing (3%-5% lower
price than these MNC peers).
 Voltasbeck aims to capture 10% Market Share by 2024.

20. ENGINNERING PROJECTS
DOMESTIC MARKET
OUTLOOK AND OPPURTUNITIES
The Company has strategically increased focus on Govt. funded
projects emphasizing inclusive growth. Given the policy impetus on certain
key sectors, there are upcoming opportunities in areas of built
infrastructure, water and electrification.
THREATS
 Weak private investment remains a cause for concern, along with
delays in project completion and receivables. The Company, thus,
continues to focus on risk mitigated opportunities which are priority
projects for the Government, with assured funding and certainty of
completion.
 Another concern is the fluctuation in commodity prices and increase
in input cost.

21. ENGINEERING PROJECT
INTERNATIONAL MARKET
OUTLOOK AND OPPURTUNITIES
As the preferred contractor, Voltas is recognized to have expertise and
resources for executing mid to large size projects in Gulf Cooperation
Council (GCC) countries. At the same time, the Company is also looking
to foray into new geographies such as Bahrain and Kuwait.
THREAT
 The threats to this business are from political upheaval in the GCC
countries and a significant fall in crude oil prices that tend to
postpone announcement of infrastructure projects.
 Changes in financial conditions of main contractor or main client
could lead to payment delays in longer term contracts.

22. ENGINEERING PRODUCTS AND SERVICES
TEXTILE MACHINERy
OUTLOOK AND OPPURTUNITIES
 The long-term growth potential of the textiles industry continues to be
positive, owing to significant opportunities in the domestic and
international markets.
 To revive exports of apparel and garments, the Government of India (GoI)
announced several measures to revive growth.
 Being a one-stop destination that provides capital equipment solutions as
well as after-sales services to textile industry, Voltas is poised to benefit from
tail winds in the sector.
THREAT
 Increasing import of textile and garments in India may lead to lower
demand for end products and reduced investments in the sector.
 Non-availability of finance has been a deterrent in the past for the TextileInd,
and continued delays in disbursement of loans by banks can slow down
conversion orders into dispatches.

23. ENGINEERING PRODUCTS AND SERVICES
MINING AND CONSTRUCTION EQUIPMENT
OUTLOOK AND OPPURTUNITIES
 Voltas continues to be the preferred partner for Vale in Mozambique and
is well placed to benefit from their ramp up in production.
 As the activities in mining industry pick up, there will be opportunities
for the India business. The Company is selectively participating in tenders
leveraging on its service expertise and network of depots.
THREAT
The India mining business has been impacted during the last three to four
years due to environmental concerns. However, Mining & Construction
Equipment (M&CE) business is poised to identifying new mining sector
which seek representation in the Indian market.

24. RISK AND MITIGATION

25. CONT… RISK AND MITIGATION

26. CON CALL HIGHLIGHTS

27. CON CALL HIGHLIGHTS

28. COVID IMPACT ON BUSINESS
 Extended lockdown and normal monsoon has whitewashed peak
business season for RAC.
 Margin correction in UCP segment across companies on account
of:
* Anticipated volume decline in FY21.
* Discounts and dealer support provided by brands.
 Delays in execution of ongoing projects and incremental order
finalization as capex activity would take time to revive.
 Middle East EMP market is expected to remain weak given weak
crude oil prices.
 Price correction provides attractive entry point on Long term
business prospects

29. REVENUE(IN CRORES)

30. EBIT(IN CRORES)

31. DOWNfALL IN 2018-19

32. SEGMENT DATA

33. SEGMENT EBIT & REVENUE ANALySIS

34. fINANCIALS ELABORATED

42. SOTP VALUATION

43. VALUE PER SHARE DCf(IN CRORES)

44. 1 yEAR fORWARD P/B CHART

45. STOCK PERfORMANCE

46. PEERS RATIO ANALySIS

47. RAC MARKET SHARE COMPARISON

48. SEGMENTAL VIEW
VOLTAS BLUE STAR

49. SEGMENTAL VIEW
VOLTAS BLUE STAR

50. GOT QUESTIONS
?