Voltas, a major participant in India’s cooling products business, to see a notable gain in its stock price driven by the strong demand for cooling products in reaction to the unprecedented temperatures.
The stock price of Voltas, a Tata Group firm, has increased dramatically in recent months, hitting new highs every month. The company’s shares have increased by 80% since trading at Rs 827 apiece in December, and they are currently trading at Rs 1,485 apiece. The stock has increased 172% over the previous four years because to this latest rise.
Meanwhile, the stock surged by 33 percent in Q1 FY25 on account of the extraordinary temperatures felt in many states of India, which has triggered the demand for cooling systems. To keep records straight, IMD data reveal that April’s temperatures were the highest since 1901 in the eastern and northeastern (E&NE) region and the second highest in the southern region of India.
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) reports that the June heat wave resulted in record air conditioner sales of six million units in the April-June period, representing a year-over-year (y-o-y) gain of 50%.
In India especially Voltas has the lion share of cooling products since the country’s market leader for RACs is believed to have recorded a steep rise in sales this year. For the Engineering goods and electromechanical projects and services, the firm also has a representation in the Middle East and India through Universal’s MEP Projects & Engineering Services Limited.
Targets 2 million AC unit sales
Voltas sold more than 2 million AC units in the fiscal year 2023–2024, setting a record for the most sales volume for any brand in India in a single year. Within the first half of the current year, the firm hopes to reach this goal.
Based on the most recent data available, the firm accomplished this milestone in an exceptionally short amount of time—within the first 110 days of the current calendar year, it has already sold one million AC units.
RAC market to reach Rs 50,000 crore
This study expected that the RAC market in India would grow steadily at a CAGR of 12 % to Rs 50,000 crore by 2028–2029. A wider channel network is spread across India, an exceptional product portfolio, superior customer services make the firm ready to lead this expansion.
Additionally, a number of other reasons are anticipated to propel expansion in this market, including the pursuit of a better lifestyle with easy access to consumer credit, rising disposable incomes, and progressively hotter summers.
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