MOSL: VOLTAS (Neutral)-Voltas-Arcelik JV launches home appliances; Targets the mass economy segment with ‘value for money’
VOLTAS: Voltas-Arcelik JV launches home appliances; Targets the mass economy segment with ‘value for money’ products
(volt IN,Mkt Cap USD2.7b, CMP INR614, TP INR605, 2% Downside, Neutral)
- Voltas-Arcelik JV launches home appliances portfolio in India: Products in its home appliance portfolio consist of refrigerators, washing machines, dishwashers and microwaves, and these will be sold under the brand “Voltas Beko”. With this launch, the Voltas-Arcelik JV should address a potential market of INR430b, which is growing at 10-12% annually. The company is looking to corner around 10% market share, and to generate revenues of INR100b by 2025 in the home appliances segment. We expect a pan-India launch for these products by November 2018. The brand will use the tagline “Partners of Everyday Happiness” for its promotions. Key competitors for ‘Voltas Beko’ are LG, Samsung and Whirlpool (Page-2 onwards market size, market share, competition and pricing across categories).
- Product range targets the mass economy segment with “Value for money” products: The JV named ‘Voltbek Home Appliances Private Limited (Voltbek)’ plans to launch over 100 SKU's over the next three months including: a) 44 SKU's in refrigerators; b) 40 SKU's in washing machines; c) 12 SKU's in microwaves; and d) 7 SKU's in dishwashers. The brand aims to provide its customers with state-of-the-art innovative products leveraging the Voltas brand and distribution, coupled with Arcelik’s global expertise in product development. Its range of home appliances would be “value for money” and should cater across segments in metros, tier-II and tier-III cities.
Voltas is an air conditioning company based in India. Co. offers engineering solutions for industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality. Co. is principally active in the management and execution of electro-mechanical projects and the installation and servicing of diverse technology-based systems. Co.'s operations are organized along three business segments: Electro-Mechanical Projects & Services; Engineering Products & Services; and Unitary Cooling Products.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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