Voltas and Atomberg to Set Up JV for AC Compressor Manufacturing Plant in Chennai
Voltas Limited has entered into a binding term sheet with Atomberg Innovation Private Limited to establish an equal joint venture for manufacturing energy-efficient room air conditioner compressors in India.
The proposed joint venture will construct a manufacturing facility in Chennai with an initial target capacity of approximately 2.8 million units annually. Voltas will serve as the anchor customer for the plant's output, while the joint venture will retain flexibility to supply compressors to other room air conditioner brands in the domestic market.
The venture combines Voltas' established room air conditioner market reach with Atomberg's technical expertise in energy-efficient brushless DC motors and controller systems. It is structured on a 50:50 shareholding basis with a five-member board, with Voltas nominating three directors and Atomberg nominating two.
By localizing compressor manufacturing, Voltas aims to reduce its reliance on imported components and build a domestic supply base for one of the most valuable parts in cooling appliances. The project adds to India's push toward localized component manufacturing in the room air conditioner sector, supported under the government's Production Linked Incentive scheme.