According to a top company official, leading domestic air-conditioner manufacturer Voltas aims to build up a compressor manufacturing unit in conjunction with an international partner and would invest around Rs 500 crore.
According to Pradeep Bakshi, Managing Director and CEO of the Tata Group, the company plans to invest in a joint venture company with an international partner, which will require PN3 (Press Note3) approval. Bakshi did not provide any information on its international partner but stated that it is one of the world’s largest compressor makers.
“For that, we have already filed for PN3 approval and we are waiting for it. Once it is done, we will be setting up the plant,” Bakshi said.
When asked about the investment, he said: “We plan to invest a minimum of Rs 350 crore on compressor manufacturing and another Rs 150 to 200 crore for air-conditioning.”
“We have committed an additional investment of around Rs 450 crore to 500 crore to the government on the basis of the approval of PN3,” he added.
The company is currently waiting for the PN3 application to be finalised before deciding on a location for its compressor production factory. “Once PN3 is approved, we will decide on other things,” Bakshi added.
Following the COVID-19 outbreak, the government made prior approval required for foreign investments from countries that share a land border with India to prevent opportunistic takeovers of domestic enterprises. China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan all have land borders with India. According to that judgement, FDI bids from these nations must be approved by the Indian government before they can invest in India in any industry.
Voltas’ bids for producing Cross Flow Fans (CFF), Heat Exchangers, and Plastic Moulding components under the PLI plan have already been authorized by the government. The government stated earlier this month that it had chosen 26 proposals for the air conditioning sector, with a total committed investment of Rs 3,898 crore.
