Voltas rose 1.05% to Rs 134.90 at 12:20 IST on BSE after the firm said it has executed a JV pact with Dow Chemical Pacific (Singapore) Pte, for establishing a JV firm in India, to tap the growing water and waste water treatment market in the country.
The announcement was made after market hours on Friday, 28 February 2014.
Meanwhile, the S&P BSE Sensex was down 74.81 points or 0.35% at 21,045.31.
On BSE, so far 1.77 lakh shares were traded in the counter as against average daily volume of 4.39 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 1.79% at the day's high of Rs 135.90 so far during the day, which is a 52-week high for the counter. The stock lost as much as 0.48% at the day's low of Rs 132.85 so far during the day. The stock had hit a 52-week low of Rs 62.70 on 4 September 2013.
The mid-cap company has equity capital of Rs 33.09 crore. Face value per share is Re 1.
Voltas said that the proposed new joint venture (JV) company - Voltas Water Solutions will have equal capital contribution from Voltas and Dow Chemical Pacific (Singapore) Pte (Dow). The JV company will market and distribute standard packaged Water Treatment Systems and Waste Water Treatment Systems of capacity up to 20 metre cube/hour, to residential and commercial complexes and light industrial markets in the Indian subcontinent, Voltas said. The entity's operations would include designing, procuring, testing, marketing, selling and servicing of such standard water treatment systems and waste water treatment systems, it added.
Sanjay Johri, Managing Director of Voltas said, "Water has been identified as a key focus area for the Tata group, and we are very happy to work with Dow Group, in this area. With its unrivalled know-how and technological leadership in the water treatment space, the partnership, will help Voltas Water Solutions cater to the growing water treatment requirements of the Indian subcontinent. The partnership will simultaneously leverage the brand and distribution strength of Voltas, along with the technology prowess of the water and process solutions division of the Dow Group. We will work towards establishing the joint venture as a leading provider of water treatment solutions".
Snehal Desai, Global Business Leader for the water and process solutions division of Dow Group commented, "We are proud to form an alliance with Voltas -- a Tata company. Water treatment has significant business potential in India, and Voltas is an ideal partner with a strong brand reputation, and a wide-spread sales and service network. As part of our long-term strategy, we intend to establish the joint venture, to fully exploit the untapped potential of the Indian market. This joint venture is a significant step towards further strengthening our position in mid-market water systems in India".
Voltas said that the Water and Waste Water Treatment market targeted by the new company is largely catered to today, by unorganized players. The new JV will provide a branded and differentiated product line, with a focus on quality and service delivery, the company said in a statement.
On a consolidated basis, Voltas's net profit fell 19.4% to Rs 61.92 crore on 3.1% decline in net sales to Rs 1114.99 crore in Q3 December 2013 over Q3 December 2012.
Voltas is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.
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