ISTANBUL and MUMBAI, India, May 24,
2017 /PRNewswire/ --
The JV targets market leadership
in 10 years
Beko, part of Koç Holding A.S. (Koç Holding),
Turkey's largest industrials
conglomerate, and Voltas Limited, part of the Tata Group,
India's largest conglomerate, have
announced a deal that will see Beko and Voltas, India's largest air conditioning brand, enter
into a joint venture (JV) for consumer durables.
The proposed new company, to be incorporated in India, will be an equal partnership. The JV
will be incorporated between Ardutch B.V. (49%), wholly owned
subsidiary of Arçelik, owner of Beko Brand, Koç Holding (1%),
Voltas (49 %), and Tata Investment Corporation Limited (1%). The
partnership, once regulatory approval is received, will launch
refrigerators, washing machines, microwaves and other white goods
and major domestic appliances for the fast-growing consumer
durables market in India.
The Joint Venture Company (JVC), with an equity capital of
$100 million, will leverage the Beko
brand and its expertise in the major domestic appliance sector
across the globe, as well as Voltas' strong brand presence and wide
sales and distribution network in India.
The JV is key to Beko's "Silk Road" business strategy, which
seeks to create a continuous and strong presence in the corridor
between Turkey and the
Asia Pacific region. This move
aims to tap into the Indian market which offers great potential
with its approximately half billion middle-income consumers. The
white goods market in India is
expected to reach US$ 12 billion by
2027.
With the new greenfield investment, the JV looks to achieve a
market leadership position in white goods. The new production
facility is aimed to be operational by the end of 2018. The JVC
will also sell major domestic appliances produced in various
facilities of Beko around the world.
The JV demonstrates a joint vision of building a long-term
sustainable durables business in India and Beko's ongoing focus on the Asian
continent as the key driver in its strategic growth plans.
Commenting on the partnership, Fatih Kemal
Ebiçlioğlu, President of Consumer Durables Group of Koç
Holding, said: "Given the accelerating shift of global economic
power to Asia, this joint venture
will be a critical step for Beko's growth in the region.
India stands out as an important
opportunity window as it offers a great potential with its 1.3
billion population. In the last ten years alone, the Indian major
domestic appliances market grew by nearly 9 percent, surpassing the
overall 3 percent growth of global white goods market. With this
joint venture, we make a strategic move to increase our global
competitive advantage."
Hakan Bulgurlu, CEO of
Arçelik, said: "Our joint venture with Voltas and Tata Group
demonstrates Beko's commitment to India and showcases Beko's "Silk Road"
strategy, which seeks to capitalise on major growth opportunities
in countries across the Asia
Pacific.
"India's rapidly expanding new
middle class presents a major opportunity for our business. This
young, urbanizing population includes many first-time buyers
investing in white goods. The potential for growth in this market
is incredibly exciting and we are proud to be partnering with the
Tata Group to deliver this ambitious new partnership.
"By combining our global manufacturing expertise and innovation
capabilities with Voltas' expertise, we're confident the company
will deliver economic growth and act as a platform for our
continued business success going forward."
Ishaat Hussain, Tata Sons Director and Chairman of
Voltas Ltd., said: "Consumer Durables is a
logical extension for Voltas, and we are delighted to be forming
this Joint Venture with Arçelik, part of the Koç Group. The strong
technology platform, combined with the global manufacturing and
sourcing capabilities of Arçelik, will help the JVC offer many
unique and differentiated products to the Indian market. The
Voltas-Beko partnership will also leverage the well-known
brand and distribution strengths of Voltas, and we will work
towards establishing the joint venture as a market leader for
consumer durables in India."
Sanjay Johri, Managing
Director of Voltas Ltd., added: "Our long history, and our
unique understanding of Indian customers combined with our brand
and distribution strengths, has helped us become market leaders in
room air-conditioners in India.
Voltas' core competence, and the manufacturing capabilities and
wide product range of Beko will help us become a leading player in
the consumer durables market in the country. The Indian consumer
has always been at the forefront of all our plans, and the
expansion in our product portfolio, through this foray, will as
always, provide our customers products 'made for India', which specifically cater to their
needs. We remain committed to our goals of sustainable profitable
growth, and this Joint Venture will create enhanced value for our
customers and shareholders."
Note to Editors
About Arçelik & Beko
Today Arçelik A.Ş. offers products and services around the world
with its 30,000 employees, 18 production facilities in 7 countries
(Turkey, Romania, Russia, China, South
Africa, Thailand and
Pakistan), its 34 sales and
marketing offices in 32 countries and its 11 brands (Arçelik, Beko,
Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy,
Altus and Dawlance) serving products and services in 145 countries.
As the third largest home appliances company in Europe, the consolidated turnover of Arçelik
A.Ş. was totalled at TRY 16.1 billion in 2016. Generating 60% of
its income from global markets Arçelik A.Ş. owns 14 R&D
centres, employing over 1,300 employees. Arçelik is listed in ISE
(Borsa Istanbul) since 1986. Beko, the global brand of Arçelik
A.Ş., has been the fastest growing home appliances brand of
Europe since the millennium. Brand
is the market leader in UK and Poland and the #1 freestanding white goods
brand of Europe.
About Voltas
Voltas Limited is a premier engineering solutions provider and
project specialist. Founded in India in 1954, Voltas Limited is part of the
Tata Group, and 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. The Company is also the market leader in
room air conditioners in India.
About Koç Holding
Koç Holding, the parent company of Arçelik A.Ş., is the leading
investment holding company in Turkey and Koç Group is Turkey's largest industrial and services group
in terms of revenues, exports, taxes, number of employees and
market capitalization on the Borsa İstanbul with over 95,000
people. Koç Holding has leading positions with strong competitive
advantages in various sectors, such as energy, automotive, consumer
durables and finance, which offer strong long-term growth
potential. Following an average annual growth rate of 11% in
consolidated profit in USD terms between 2006 and 2016, Koç Holding
ranks among the world's top 500 companies according to Fortune 500
with consolidated sales of around US$ 23.5
billion as of year-end 2016. Koç Group has been a driving
force of the Turkish economy with total sales corresponding 6% of
Turkey's GDP, exports comprising
9% of Turkey's total exports and
Koç Holding and its listed subsidiaries making up 20% of Borsa
Istanbul's market capitalization.
About Tata Group
Founded by Jamsetji Tata in 1868, the Tata group is a global
enterprise, headquartered in India, comprising over 100 independent
operating companies. The group operates in more than 100 countries
across six continents, with a mission 'To improve the quality of
life of the communities we serve globally, through long-term
stakeholder value creation based on Leadership with Trust'.
Tata Sons is the principal
investment holding company and promoter of various Tata companies,
including Voltas. Sixty-six percent of the equity share
capital of Tata Sons is held by
philanthropic trusts, which support education, health, livelihood
generation and art and culture. In 2015-16, the revenue of Tata
companies, taken together, was USD 103.51
billion. These companies collectively employ over 660,000
people.
Each Tata company or enterprise operates independently under the
guidance and supervision of its own Board of Directors. There are
29 publicly-listed Tata enterprises with a combined market
capitalization of about USD 116.41
billion (as on March 31,
2016). Going forward, Tata companies are building
multinational businesses that seek to differentiate themselves
through customer-centricity, innovation, entrepreneurship,
trustworthiness and values-driven business operations, while
balancing the interests of diverse stakeholders including
shareholders, employees and society.