Before stepping down, Noel Tata reveals Voltas' big Make-in-India plan for ACs

India's leading air-conditioner maker, Voltas Ltd, is evaluating plans to enter compressor manufacturing, marking a potential step towards greater backward integration and reduced dependence on imports. 

The announcement was made by Voltas Chairman Noel Tata during the company's 72nd Annual General Meeting (AGM), where he also confirmed that this would be his final AGM as chairman.

READ THIS: 'This will be my last AGM as Chairman...': Noel Tata announces exit as Voltas chairman

Speaking to shareholders, Tata said the company is actively reviewing the opportunity.

"At present, we do not manufacture compressors, but it is being reviewed by management, who may take a call in the near future," Noel Tata said at the AGM.

Voltas had earlier attempted to manufacture compressors through a joint venture with Hong Kong-based Highly International, but the proposal was shelved in 2023 after failing to secure government approvals under Press Note 3 regulations.

Compressors are the core component of air conditioners, and India currently relies heavily on imports for them. The company has also been exploring alternative partnership opportunities, including discussions with Korean firms, following the collapse of its earlier joint venture plan.

On the investment front, Tata said Voltas has largely completed its major manufacturing expansion after commissioning what he described as the country's largest air-conditioner production facility in southern India. Going forward, the company plans a capital expenditure of around ₹200 crore in FY27.

The announcement comes at a time when Voltas is riding on a strong demand for cooling products. The company recently crossed the milestone of selling one million room air-conditioners in just 81 days during the first quarter of FY27, highlighting robust consumer demand driven by rising temperatures and increased penetration across urban and semi-urban markets.

ALSO READ: Voltas shares climb 5% as room AC sales hit 10 lakh units in three months

Tata also expressed confidence in the long-term outlook for India's consumer durables sector.

"The consumer durables industry is expected to emerge as one of the fastest-growing segments of the economy, supported by a large and expanding middle class, rising disposable incomes and deeper penetration into semi-urban and rural markets," he said. He added that structural trends such as sustainability, digitisation and regional supply chain realignment would continue to create long-term opportunities for the sector.

The AGM also marked the beginning of a leadership transition, with Noel Tata announcing that he will step down as Voltas chairman after steering the Tata Group company through a period of significant manufacturing expansion and market leadership.