MP turns down Voltas' sop plea for new plant

The Madhya Pradesh government has turned down the Tata group-owned Voltas' plea for excise and sales tax relief for setting up a new manufacturing plant in the state.

"We held talks with the state for setting up a new plant and had demanded some relaxation in excise and sales tax. But the government was not ready for it," K J Jawa, vice-president (operations) at Voltas, said.

A senior commercial tax official with state government said, "A number of companies are approaching us in setting up of plants in various sections. But we are inviting them to set up plants at the special economic zone (SEZ) in Indore. As regards Voltas or any other company we will go by rules and regulations. We will announce our new industry policy on October 2 and there will some attractive schemes for various companies."

"We have to see the options at SEZ Indore," Jawa said.

The company has triggered a price war by launching its new small air-conditioner in the 0.50 tonne range in Madhya Pradesh and Chhattisgarh. The company has priced the air-conditioner at Rs 8,500.

The leading air-conditioner and engineering products manufacturer is also planning to increase its distributor and dealer network in Madhya Pradesh and Chhattisgarh.

"We have plans to increase dealerships from 270 to 300 and retailers from 400 to 750 within next 12 months all over India and we will try to appoint more dealers and our Voltas Domes (new showrooms) in Madhya Pradesh and Chhattisgarh," Jawa said.

The company is upbeat on its new range of Vertis air-conditioners, which are available in the range of 1.25 tonne, 0.75 tonne and 0.50 tonne.

"It is a test market and we are hopeful that the market sees new competition. We have launched a Rs 10 crore ad campaign for the purpose and our target customers are bank and insurance executives, small families etc. We will launch another range in window and split air-conditioners, slimline and ductable split and water dispensers. These product will help us grow by 20 per cent in the coming season," Jawa said.