Voltas, the diversified Tata group company, has shut down its modular furniture business as part of a strategic initiative to focus on its core activities. The division has been carrying out business under the Allwyn brand.
"The division is not taking any fresh orders, and will remain open till the existing orders are completed," senior company officials said. The division contributed around Rs 27 crore to the company's turnover last year.
Voltas had inherited the modular furniture business following its acquisition of the state-owned Allwyn in 1994. It later entered into a technical alliance with Listas of Switzerland for designs, in 1996.
The company has decided to utilise the existing workforce of the division in the commercial refrigeration unit, which has a contract manufacturing deal for Korean chaebol LG for its direct cool refrigerators.
Company executives said the key focus areas of Voltas would be air-conditioners, commercial refrigeration, unitary products and electromechanicals.
"All these businesses have shown sharp growth in the first quarter, in line with the management's emphasis on them," sources said. The air-conditioners and commercial refrigeration business has, in fact, shown a 44 per cent jump in order bookings during the first quarter.
Over the last three years, Voltas has gone through a major restructuring exercise, selling or hiving off unprofitable businesses and subsidiaries. It has sold its thermostat business, the chemicals unit to a group company, and hived off part of the bleeding white goods into a joint venture with Electrolux.
...Fedders JV to be named Universal Comfort Products
Voltas and Fedders Corporation of the US, which recently announced the formation of an equal manufacturing-only joint venture for air-conditioners, has decided to name the new company Universal Comfort Products. The Tata group company will hive off its Dadra unit to the new joint venture and will purchase air-conditioners to be sold under its own brand. Similarly, Fedders will also lift products from the venture. The venture has also kept its options open on foraying into other products in which Fedders has expertise, but no decision has been taken on this.
