Voltas Summer Internship Project

Nachiketa Trivedi:10BM60052

Company History and Profile

Voltas was incorporated on 6th September 1954. Tata Sons Ltd. and

Volkart Brothers, a Swiss Company operating in India since 1851,

promoted this company and hence the name VOLTAS.

It caters to a wide spectrum of industries as areas such as heating,

ventilation and air conditioning, refrigeration, electro-mechanical

projects, textile machinery, mining and construction equipment,

materials handling equipment, water management & treatment, cold

chain solutions, building management systems, and indoor air quality

Sectors of Operation

The Company undertakes:

• management and execution of electro-mechanical projects, including

air conditioning and refrigeration

• the design and manufacture of industrial equipment, cooling

appliances and materials handling equipment

• sourcing, installation and servicing of diverse technology-based

systems serving Indian industry through representation of global

technology leaders

Strengths and Core Competencies• Voltas offers integrated solutions which enables:

• Single-window approach • Harmonization of all phases • Integrated value engineering solution • Improved serviceability • Interface management and enhanced coordination • Reliability

• Voltas manufactures virtually the full equipment• It has one of the most extensive customer care networks• Voltas has forged alliances with global leaders in various fields. These

collaborations enhance knowledge base, technological know-how and project capabilities,

Established Expertise

• Voltas leads in air conditioning projects in India.

• Voltas is India's largest exporter in the field of electro-mechanical projects.

• Voltas manufactures one of India's leading air conditioner brands.

• Voltas is one of India's most trusted names in supply, service and support

of mining and construction equipment.

• Voltas leads in sourcing, installing and servicing state-of-the-art textile

machinery in India.

• Voltas is a leader in forklift trucks, manufactured to in-house design.

Opportunities

• RAC market in India to see a 28% CAGR over the period FY2010 to FY 2012

• Opportunity to develop the water treatment business as it has a lot of potential that has not yet

been exploited fully

• Opportunity to exploit the expected growth of cold chain following sops extended by government

in the current budget

• Further growth in Middle East Market as rising Oil prices increases the spending power of these

states

• Alternate opportunities like FIFA 2022 and metro rail project.

• Volumes in Materials Handling Business have been improving and they are expected to grow

further

• Expand Service and sales operations of Mining equipment in Africa

Threats

• With the Company’s increased exposure in the industrial and infrastructural

sectors, any delays in the planned execution of announced projects could

impact the business projections.

• Many multinational companies are considering entry into the MEP sector.

• Some of the main contractors are developing in-house MEP capabilities

• Debt Crisis in UAE

• Global slowdown and resultant drop in oil prices/revenues

• Fluctuations in currency rates

• Volatility in material and commodity costs

International Projects Under-taken

• Airports - New Hong Kong International Airport, Male International Airport, Maldives

• Towers - Buri Khalifa, Dubai, UAE & Jumeriah Beach residence, UAE

• Commercial, shopping, office & entertainment complexes Iraq, Qatar, Abu Dhabi, UAE (F1)

• Hospitals – Shaikh Khalifa Medical Centre, Abu Dhabi

• Hotels – Mall Of Emitares hotel, UAE, other hotels in Uzbekistan, Abu Dhabi

• Palaces – Palace of His Majesty The Sultan Qaboos Bind Said, Muscat

• Defence - Air Force base, Qatar

• Techno-parks, research & training centres – Cyber-port Development, HK , Scientific Research Centre, Iraq

• District cooling - 2900 TR Cooling Plant at Al Jimi, Al Ain, UAE

• Power stations - Al Taweelah (Phase B) Power Station, Abu Dhabi, UAE

• Rail & Metro - KCRC - West Rail Station at Siu Hong & Tuen Mun

• Water management & treatment projects - 800 MLD water reclamation plant at Changi, Singapore (400 MLD – C3C module)

Domestic ProjectsService segment • IT / ITes, office complexes –TCS, Wipro, Satyam, Sun Microsystems, Siemens, IBM• Malls & multiplexes –Hometown, Eternity, IMAX, Cinemax, West Side, Shopper stop(over 25 malls in

different cities)• Hotels – Hilton, ITC, Taj, Sahara Star stop(over 20 hotels in different cities)• Hospitals - Arvind Eye, Fortis, D.Y. Patil, Apollo etc.• Sports complexes & stadiums – Indira Gandhi Indoor std, Tyagraj std. in Delhi.Industry segment• Airports - Rajiv Gandhi International Airport, Hyderabad, Chennai Airport, Netaji Subhash Chandra

Bose International Airport, Kolkata etc.• Power sector - Jojobera Power Plant, Damodar Valley Corporation, National Thermal Power

Corporation, Jindal Power Limited, Reliance Energy Limited, Chhattisgarh & Rajasthan State Electricity Board, West Bengal Power Development Corporation, National Thermal Power Corporation, Hooghly Met Coke Captive Power Plant, Haldia, National Aluminium Company Captive Power Plant, DVC & TATA Power

• Steel & metals - Tata Steel Ltd, Bokaro Steel Plant, Rourkela Steel Plant (SAIL) , Bhilai Steel Plant, Jindal Steel & Power Ltd, JSW Steel Ltd, Bhushan Steel plant, Essar Steel Plant, Selam Steel Plant, Hindalco

• Cold chain & food processing – Nafed, Punjab & Haryana State Agri Marketing Board

Business organization• Voltas' operations have been organized into three business clusters. Each of these commands

its own well-defined systems and resources for market coverage and service to customers.

Electro Mechanical Products and

services

Electrical Mechanical Refrigeration Solutions

(Domestic)

Electrical Mechanical Refrigeration Solutions

(International)

Waste water Management

Engineering Products and

Services

Mining

Textile

Material Handling Equipment

Unitary Cooling Solutions

Air Conditioners

Refrigeration

Water Coolers

Strategic Planning

Corporate Strategy

Portfolio review

Develop Business Strategy with SBU

Performance Review

Manage Subsidiaries and Joint Venture Performances

New Businesses

Identification

Developing Entry Strategy

Nurturing the Business

Corporate Initiatives

Effective implementation

of Corporate Initiatives

Sustainability of Corporate Initiatives

Corporate Strategy

Background

“Regarding the project based on strategy: The topic will seem very

generic at first; Entry strategy, Market development etc. but

when you detail out your work you can make out to what detail

you need to go to achieve the entry and market development. Its

an experience wherein you will feel that it is you on your own

with your small company planning to enter into the market or

developing one.”

-As per experience note given by Ritesh Bara’s (VGSOM batch of

2010) internship at Voltas.

Project

Why to undertake the project ?

• Identify the areas where company needs to focus

• Identify new projects which the company can take up

• Identify new geographies where operations need to be developed

• How to harness growth potential in the infra structure sector,

consumer demand.

Project

Options Available to Voltas

• Utilize the opportunity in Cold Chain development

• Identifying new infrastructure projects like airport modernization,

construction of metro rail projects, commercial building development.

• Expanding the existing waste water treatment operations

• Identifying opportunities for providing HVAC solutions for atomic energy

reactors

• Tap into the consumer durable market growth.

Methodology

• Identify the exact role played by Voltas in existing projects

• Identify upcoming projects

• Explore the opportunity for Voltas

• Explore how can Voltas differentiate its service offering from other players

Project Deliverables: A feasibility report inclusive of all areas such as

financial(NPV, Cash flow estimates), HR(workforce allocation & expertise),

technology(if required), operations(process flow), legal

feasibility(regulations, tenders)

Benefits Benefits to the Company:

1. Feasibility study on which projects to pursue and the direction in which they should proceed in future.

2. Inputs on how to differentiate service offering to build a sustainable competitive advantage.

3. Fresh unbiased outlook.

Benefits to the trainee:

4. Practical experience in deciding the future areas of focus for a company.

5. Learn how to differentiate service offering.

Readings and References

• "Project Feasibility Analysis: A Guide to Profitable New Ventures," by David

S. Clifton Jr. and David E. Fyffe.

• Enhancement of Company Performance Using the Right Management Tools:

Their Influence on Corporate Strategy. Blahová, Michaela.

• Stress-Test Your Strategy , by, Simons, Robert. Harvard Business Review,

• Product Line Design for Consumer Durables: An Integrated Marketing and

Engineering Approach: Luo, Lan. Journal of Marketing Research (JMR)

Thank You