72-year-old Voltas turns to 14-year-old Atomberg for help
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Voltas, the electronics major and AC market leader since 2012, has entered into a joint venture with Atomberg Technologies, a relatively young company founded just 14 years ago. The partnership aims to localise Voltas's supply chain for AC compressors, a key component that makes up a fifth of the unit cost of an AC unit. Despite the potential benefits of bringing a critical component onshore, the deal has faced skepticism due to Atomberg's relative inexperience in the AC compressor market.
Voltas's managing director, Mukundan Menon, indicated that the manufacturing plant’s capacity will start at just one million units. The joint venture's success hinges on overcoming the challenges posed by the compressor supply chain, which is almost entirely reliant on two Chinese players, Highly International and GMCC.
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