Partnership to strengthen technology capability, localization and long-term compressor supply chain resilience
Mumbai, Aug 17: Voltas Limited, a leading air conditioning and engineering solutions company from the Tata Group, has signed a Binding Term Sheet with Atomberg Innovation Private Limited (“Atomberg Innovation”), a material subsidiary of Atomberg Technologies Limited which engages in the design, manufacture and supply of motors, electronic assemblies, controller systems and related components, to establish a Joint Venture for the manufacture of high efficiency Room Air Conditioner compressors and parts related to such compressors in India.
The proposed Joint Venture is intended to undertake the development, manufacturing, and supply of Air Conditioner Compressors, with a strong emphasis on high energy efficiency, operational reliability, cost competitiveness, and progressive localization. It aims to bring together Voltas’ deep understanding of the Indian Room Air Conditioner market, product and application expertise, manufacturing ecosystem, supply chain capabilities and scale with Atomberg Innovation’s capabilities in proprietary compressor technology, first-principles engineering, product design capabilities and track record of innovation in energy efficient motors and control drives.
We are aligning this development with the evolving regulatory framework, applicable industry standards, energy efficiency requirements, and the broader objective of strengthening domestic manufacturing and building a progressively localized and competitive supply ecosystem.
Voltas will be an anchor customer of the Joint Venture, providing a strong and stable demand base, while Atomberg Innovations will be the technology partner, bringing its technology and innovation capabilities to the venture. The Joint Venture will also have the opportunity and flexibility to supply Air Conditioner Compressors to other customers, enabling broader market participation, scale, and long-term competitiveness.
Mr. Mukundan Menon, Managing Director, Voltas Limited, said: “Compressor is the heart of an Air- conditioner and is central to its performance, energy efficiency and reliability. This partnership is an important step towards building indigenous technology capability and strengthening our long-term supply chain resilience. By combining Atomberg’s technology and engineering strengths with Voltas’ market knowledge, manufacturing ecosystem and scale, we intend to build compressors designed for India.”
Mr. Manoj Meena, Founder, Atomberg, said: “Atomberg has developed deep-tech capabilities in efficient motors, control drives and advance engineering. This partnership gives us the opportunity to combine our technology strengths with Voltas’ extensive air conditioning expertise, manufacturing capability and market scale. Together, we aim to create an efficient compressor technology platform developed and manufactured in India.”
The proposed transaction is subject to satisfactory completion of due diligence, execution of Definitive Agreements and receipt of applicable approvals.