Tata Group company Voltas and Atomberg Technologies engineering arm Atomberg Innovation are planning a 50:50 joint venture to develop and manufacture room air conditioner compressors in India. The proposed venture is aimed at increasing local manufacturing of a key AC component and reducing dependence on concentrated global suppliers.
Voltas board has approved a binding term sheet with Atomberg Innovation for the proposed joint venture. Both companies will hold equal ownership, while Voltas will nominate three directors and Atomberg Innovation will nominate two to the five member board. The deal is still subject to due diligence, definitive agreements and regulatory approvals.
Voltas And Atomberg AC Compressor Joint Venture
The proposed venture will focus on developing indigenous compressor technology along with manufacturing and supply of compressors for room air conditioners. The companies have not yet disclosed the capital commitment, manufacturing plant location, production capacity or timeline for starting operations.
Atomberg Innovation already works on motors, controllers and compressors for appliance manufacturers. The company recorded Rs 17 crore in revenue in FY25 and has secured orders from Voltas and Bajaj, making the proposed AC compressor joint venture an extension of an existing supplier relationship.
Voltas is also expected to serve as the anchor customer for the proposed venture, while the business could supply compressors to other manufacturers. Voltas currently holds nearly 18% of India’s room air conditioner market, with ACs accounting for about two-thirds of its revenue.
Atomberg Expansion And Voltas Localisation Push
For Voltas, the proposed AC compressor manufacturing venture revives an earlier effort to localise compressor production in India. In 2023, the company ended a planned joint venture with Hong Kong-based Highly International after the proposed venture failed to obtain the required government approval.
The new partnership also comes as Atomberg considers separating Atomberg Innovation from its parent structure and raising Rs 150 crore to Rs 200 crore. Meanwhile, Atomberg Technologies is preparing draft papers for a proposed Rs 1,500 crore to Rs 2,000 crore IPO after reporting Rs 958.4 crore in operating revenue in FY25.
FAQs
- What is the Voltas Atomberg AC compressor joint venture?
Voltas and Atomberg Innovation are planning a 50:50 joint venture to develop and manufacture room AC compressors in India.
- Why are Voltas and Atomberg Innovation forming this joint venture?
The partnership aims to increase local AC compressor manufacturing and reduce dependence on global suppliers.
- What will the Voltas Atomberg JV manufacture?
The proposed venture will develop indigenous compressor technology and manufacture compressors for room air conditioners.
- Who will own the Voltas Atomberg joint venture?
Voltas and Atomberg Innovation will each hold a 50% stake in the proposed joint venture.
