The proposed joint venture will have an equal holding by Voltas and Fedders and will be operational only after all statutory clearances and other arrangements are in place.

Fedders is a leading global manufacturer of air treatment products, including air-conditioners, air cleaners, dehumidifiers, humidifiers and thermal technology products. It brings to the joint venture its expertise in manufacturing and product development, global sourcing network, and command of the most up-to-date and relevant global technology. In 2000, revenues from such products stood at US $ 410 million.

Voltas, India’s premier air-conditioning and cooling appliances company (with sales of over Rs.10 billion of which 70% is in the area of air-conditioning and cooling appliances), will transfer its existing manufacturing facility at Dadra, which has the ISO 9001 certification by RWTUV-Germany, to this joint venture. Subsequently, the facility will be further enhanced to manufacture a broad line of world-class window and split system air-conditioners for the domestic and export markets.

The primary objective of the joint venture is the achievement of truly international quality and technology standards in a cost-efficient manner, with economies of scale fusing Voltas’ decades of experience in climate control with the state-of-the-art technologies and product design of Fedders. The resulting products of global quality will be marketed separately by Voltas and Fedders.

Commenting on the joint venture, Daryl Erbs, senior vice-president, International, said, "Fedders has researched many potential investment options in India. We are pleased to team up with one of the pioneers in air-conditioning in India. The "manufacturing only" JV will enable Fedders to produce state-of-the-art air-conditioners in India, where the market has been growing at a rate of over 20% per annum and the residential market penetration is only 1 to 2 per cent. We look forward to working closely with Voltas to make world-class air-conditioning products in this important venture."