Voltas, Atomberg Innovation plan 50:50 venture to manufacture AC compressors
Voltas’ board approved a binding term sheet with Atomberg Innovation Private Limited on Friday, an exchange filing showed. The venture will be owned equally, although Voltas will nominate three directors to its five-member board and Atomberg Innovation two. Voltas owns no stake in Atomberg Innovation.
Tata group firm Voltas and Atomberg Technologies’ engineering arm have agreed to form a 50:50 joint venture to produce room air conditioner (AC) compressors in India, aiming to localize a crucial component while growing Atomberg Innovation’s industrial business. The venture will be equally owned, with Voltas appointing three directors to the five-member board and Atomberg Innovation two.
The exact capital commitment, plant location, capacity, or production timeline have not been disclosed, but the deal is contingent upon due diligence, definitive agreements, and approvals. Voltas stated that the partnership will advance indigenous compressor technology, enhance supply-chain resilience, and decrease reliance on dominant global suppliers.
This move comes as Atomberg ponders spinning off Atomberg Innovation, its wholly-owned subsidiary, and seeking a Rs 150-200 crore investment round led by Mirae Asset Management, a report on July 29 by the Economic Times. Atomberg Innovation, headed by cofounder Manoj Meena, creates motors, controllers, and compressors for appliance makers, earning Rs 17 crore in FY25 revenue and securing deals with Voltas and Bajaj, further expanding its ties to the industry.
Meanwhile, Atomberg Technologies aims to file documents for a Rs 1,500-2,000 crore IPO comprising new shares and an offer for sale. Its FY25 operating revenue grew 20% to Rs 958.4 crore, while its net loss decreased by 41% to Rs 117.4 crore. Voltas, India's leading room air-conditioner manufacturer with an 18% market share, previously attempted to manufacture compressors locally in 2023 via a joint venture with Hong Kong's Highly International, but terminated the partnership due to a lack of government approval.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
