Voltas is planning a JV compressor manufacturing unit with an international partner, to invest around Rs 500 crores

The main national air conditioner manufacturer Voltas plans to set up a compressor manufacturing unit in partnership with an international partner and will invest around Rs 500 crore, a senior company official said.

The Tata group firm plans to invest in a joint venture, with an international partner, which requires PN3 approval (Press Note 3), said its managing director and CEO Pradeep Bakshi.

Bakshi did not give any details about his international partner, but said he was one of the largest compressor manufacturers in the world.

“For this, we have already applied for PN3 approval and are waiting for it. Once that is done, we will set up the plant,” Bakshi told PTI, on the sidelines of an investor roundtable on the production-linked incentive (PLI) schemes held on white goods.

Asked about the investment, he said: “We plan to invest a minimum of Rs 350 crore in the manufacture of compressors and another Rs 150 to 200 crore for air conditioning.”

“We have committed an additional investment of around Rs 450 crore to 500 crore to the government based on the approval of PN3,” he added.

The company has not yet decided on the location of its compressor manufacturing plant as it is still awaiting finalization of the PN3 application. “Once PN3 is approved, we will decide other things,” Bakshi added.

Under the press briefing, the government made its prior approval mandatory for foreign investment from countries sharing a land border with India, in order to curb opportunistic takeovers of domestic firms following the COVID-19 pandemic.

Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. In accordance with this decision, FDI proposals from these countries must be approved by the government for investment in India in any sector.

The government has already approved Voltas’ proposals for manufacturing cross-flow fans (CFFs), heat exchangers and plastic molding components under the PLI program.

Earlier this month, the government announced the selection of 26 proposals with a committed investment of Rs 3,898 crore for the air conditioning sector.

As part of the PLI, the government approved the Rs 538.70 crore proposal from Daikin Industries, the world’s leading air conditioning company for the manufacture of compressors, heat exchangers, sheet metal components and molding components. of plastic.

Source link

Previous How to build an effective production team for your virtual event
Next BWBR appoints Stephanie McDaniel President and CEO - Twin Cities