Convenience & care with an emphasis on Connectivity - Voltas’ focus in 2022

Pradeep Bakshi, MD & CEO, Voltas Limited, and Deba Ghoshal, Vice President and Head of Marketing, Voltas Limited, share how 2021 has been for the company. Bakshi highlights the three priorities for Voltas in 2021 – Agility, Consumer Centricity, and the next level of Digitisation. Ghoshal, on the other hand, mentions how Propositions, Products, Pricing, Offers, Channel (Distribution) and Media – all elements of the marketing mix – have seen a shift towards being more relevant, immediate and meaningful.

Pradeep Bakshi, MD & CEO, Voltas Limited:

“2021 will be known as the year of resilience and re-alignment with the new world, with businesses focusing on reinventing themselves. At Voltas, this year, we have focused on three priorities – Agility, Consumer Centricity, and the next level of Digitisation. We aimed to turn obstacles into opportunities and have successfully strengthened our market leadership position in Room Air Conditioners business, with the highest lead over nearest competition. We have also achieved a formidable presence and lead across all our other businesses, right from Commercial Refrigeration, Commercial Air Conditioning, Domestic & International Projects, as well as our new Home Appliances business of Voltas Beko.

Owing to the second wave of the pandemic, and an intense summer, after the lock-downs were lifted, Voltas witnessed a pent-up demand for Room Air Conditioners and its range of Cooling products like Air Coolers and Commercial Refrigeration. The pan India off-take for our products slowly started getting back after the lock down, and we witnessed a good traction especially from mini-metros and Tier 2 and 3 markets. Our sales are higher than the industry benchmarks in these markets, and this can be attributed to Voltas’ strong distribution network which allows us to reach our customers, wherever they are. As a part of our ‘Smart Thinking’ philosophy, Voltas has the highest Brand Equity, as well as the highest Distribution Reach in the country, which has grown multiple times, to more than 24,000 consumer touch points. Additionally, during this festive season, despite an overall increase in input costs, we have witnessed an uptick in health and hygiene products like our Maha Adjustable PureAir Inverter ACs, that has a state-of-the-art UVC LED system that disinfects the indoor air. This gives us the confidence to continue investing in R&D that caters to the evolving requirements of our loyal customers.

We are optimistic that post the festival season, all categories of cooling products and home appliances will continue to gain ground as witnessed in the previous quarter. Our Home Appliances JV, Voltas Beko, successfully completed the second year of operations at the Sanand facility in FY 22. A new Washing Machine line is also being built-up on the same premises. We are pleased to share that Voltas Beko has recorded significant growth across all its categories including Refrigerators, Washing Machines and Microwave Ovens, and was also able to achieve a market leading position in Dishwashers, which saw a growth in sales post the outbreak of the pandemic. Given our new entrance in the market under tough conditions, this is a notable feat.

With the introduction of the PLI scheme for white goods, the government has strengthened the foundation for domestic manufacturing, both for domestic and export markets. We are honoured to be one of the 42 companies selected under PLI Scheme for white goods and our proposal for manufacturing of Cross Flow Fan (CFF), Heat Exchangers and Plastic Moulding components has been approved. The Government is encouraging the production of electronics and AC components completely in India to meet domestic as well as international demands. Voltas is ready to Make in India for the world with plants at Waghodia (Gujarat), Pantnagar (Uttarakhand), Sanand (Gujarat) and is consistently ramping up production to meet the demand, not only in the domestic market, but also for enhancing the export business. In fact, we are planning to set up a compressor manufacturing unit in partnership with an international partner and have already filed for PN3 approval.  We are confident that India will soon become a hub for global manufacturing, and we look forward to proudly contributing to the nation’s growth story in the years to come.”

Deba Ghoshal, Vice President and Head of Marketing, Voltas Limited

“In 2021, the marketing landscape for consumer durables, especially cooling products and home appliances, continued to be dominated by digital. There has been a significant shift in the way marketers have reached out to consumers, by adopting an omnichannel strategy of building consumer-connect. Propositions, Products, Pricing, Offers, Channel (Distribution) and Media, all elements of the marketing mix have seen a shift towards being more relevant, immediate and meaningful, in these times of uncertainty. From a media perspective, while Electronic and Print have made a strong comeback, the biggest leap was for Digital in 2021, where brands have consistently invested. The impetus for online will continue to go up as more people continue searching online and making purchases. Our new webstore, www.voltaslounge.com, is a step forward in embracing the digital transformation, and it has already received a good response.

As we enter 2022, we will witness that the consumer will be more cautious and connected. And in order to break the inertia towards new purchases, marketers will need to continue to create propositions which are tangible and relevant. We will witness a market of end-users who have witnessed two difficult years of the pandemic, and to win the confidence of this consumer, will be a key factor for all brands in all categories. Keeping in mind the expected supply chain challenges in the industry, the pricing dynamics in the market have to be handled carefully, by creating the right value propositions.

And it goes without saying that Digital will continue to be the pivot for all decisions related to consumer outreach. Particularly, Search, Social and Influencer strategies need to be carefully crafted. In 2022, brands must continue to drive their omni-channel presence, by integrating digital, electronic, and on-ground activations. A strategic decision needs to be made by all marketers to adopt the hybrid marketing model which will allow brands to enhance their physical and digital presence to create real-time customer delight. At Voltas, in 2022, our focus would continue to be on Cooling, Comfort, Convenience, Care with an emphasis on Connectivity.”