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In Focus: Cool Breeze

The unitary division of Voltas is expected to break even this financial year

Voltas, a strong player in air conditioning and water dispensers, is looking for diversification. The company is planning an aggressive foray into water treatment, purifying, recycling and desalination businesses. The Rs 2,200-crore company is expecting these new businesses to be its key growth drivers.

For the fourth quarter of FY 06, the company posted a net profit of Rs 24 crore, up 4 per cent from the corresponding period last year. The company's order book is up 54 per cent at Rs 2,036 crore.

The company has three lines of businesses: electro-mechanical and services (air conditioning for institutions), engineering products and services (material handling business, marketing machines for mining, construction etc.), and unitary cooling business (air conditioners for households).

Its electromechanical & services and engineering products and services division grew 40 per cent and 59 per cent last financial year. The company has executed several high-end projects in the areas of water management. It has several joint ventures and subsidiaries in Middle East countries, which have boosted its international revenues. As the air conditioning market is growing 25 per cent per annum in India, the concerned division of the company's order book will grow. The unitary division is expected to break even this financial year.