Voltas has a long history of more than four decades in project business, and this is the first time in the last few quarters (around 1.5 years) that it is facing such headwinds, mainly on account of Qatar, he added.
“As a remedial action, we are becoming very choosy while selecting the project. We are very selective. And wherever we think it is backed up with proper funding, it is through renowned contractors and the client, those who are good paymasters. We are going to them only. Now, we are not taking any chance whatsoever,” he said.
The company has project business in GCC countries, including UAE, Saudi Arabia, Qatar, Bahrain and Oman, and was part of several iconic projects of the region like Burj Khalifa, Mall of Emirates, Bahrain City Center, and Palassio Mall in Qatar, among others.
Over the outlook, the company said it is consolidating its presence further in the room air conditioner sector, as its penetration level is still very low. Moreover, people are upgrading from window to split AC as their disposable income is increasing.
“If you look at our penetration levels in India, which used to be about 3 per cent, nowadays, it has moved to around 5-6 per cent,” he said, adding that “now our consumption base is at par with China. Our population is this sort of blessing in disguise for us as the number of youth is growing”.
