Voltas has revived its plans to manufacture air-conditioner compressors in India by forging a partnership with a firm from either Japan or Korea. The home appliance manufacturer has lined up investments of over Rs 1,300 crore to make components like compressors, capacity expansion, and manufacturing of newer home appliances.

The compressor project will involve investment of over Rs 350 crore, while the company is also investing Rs 500 crore immediately in the Chennai plant to produce air conditioners. This will be followed by a round of infusion of another Rs 500 crore in it over the next four to five years.

The company is in the process to set up commercial refrigeration production at Waghodia in Gujarat. In its Sanand plant, where it manufactures refrigerators and washing machines, plans are for starting semi-automatic washing machine manufacturing. Voltas also expects to raise up to Rs 500 crore through debentures on a private placement basis, which would be utilised for capital expenditure for its new manufacturing plants at Chennai and Waghodia.

The company's proposed JV agreement with Highly International to manufacture inverter AC compressors did not receive the regulatory approvals from the government.

The company is transforming into a complete home appliance manufacture. As part of this, it is venturing into small domestic appliances like water heaters and kitchen appliances like hob and mixer-grinder.

Voltas has been a production-linked incentives (PLI) beneficiary for compressors and has presence in semi-automatic washing machine segment. The company forayed into the appliance market under the Voltas Beko brand as part of a partnership with Arcelik Group.