Dolat Capital: Voltas Reverberates Its Market Leadership In The Room Air Conditioner Segment

Dolat Capital Report

Voltas Ltd.’s annual report reverberates its prestigious market leadership position in the room air conditioner segment along with focus on using innovation and a strong balance sheet as a competitive advantage.

The company believes that in the air conditioner category with low penetration estimated at under 6%, combined with uninterrupted and better power availability across India, provides ample runway for future growth. It also aims to replicate this model in its appliances foray (through Voltas Beko).

The company’s distribution network has grown 15 times in the last 10 years, to more than 19,000 consumer touch points. The company credits its expanding distribution network as a big part of the success of its strengthening market leadership.

It is focusing on expanding its footprint through more exclusive brand outlets (EBOs) across tier two and three cities. Voltas continues to enjoy the highest distribution reach in the industry of 50%.

Online platforms are a clear focus. It already has a 40% share of room AC sales in the e -commerce space, the largest amongst its peers. In its discussions on customers, it talks of many consumers shifting their purchasing habits to online.

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