VOLTAS LTD.

SUBJECT- STRATEGIC MANAGEMENT

A PROJECT SUBMITTED
TO THE UNIVERSITY OF MUMBAI
FOR THE DEGREE OF
MASTERS IN COMMERCE
SEMESTER - 1
IN THE PARTIAL FULFILLMENT REQUIREMENT
OF THE COURSE
(ACADEMIC YEAR 2015-16)
BY

PRAFUL K. VEGDA
ROLL NUMBER:UNDER THE SUPERVISION OF
PROF:- JHALAK KHADIWALA
DEPARTMENT OF MCOM
BHARTIYA VIDYA BHAVANS
HAZARIMAL SOMANI COLLEGE OF ARTS AND SCIENCE
PLACE - MUMBAI
DATEINTERNAL SIGN OF SUPERVISION
SIGN OF EXTERNAL SUPERVISOR
NAME

CERTIFICATE
This is to certify that this project report entitled
STRATEGIC MANAGEMENT Submitted by PRAFUL K.
VEGDA in partial fulfillment of the requirement for
the degree Master of Commerce (M.Com) Part 1
(Semester 1) is a bonafide research work
completed under my guidance and supervision . No
part of this project has ever been submitted for
other degree .the assistant rendered during the
course of the study has been duly acknowledged.

External Examiner
Examiner

Internal
Professor Name

JHALAK KHADIWALA
Date-

DECLARATION
Certified that I PRAFUL K. VEGDA of Master of Commerce (M.com)
Part 1 (Semester 1) have prepared titled STRATEGIC
MANAGEMENT the guidance of Prof. JHALAK KHADIWALA.
Department of Commerce Bhavans Hazarimal Somani College.
Chowpatty, Mumbai in partial fulfillment of the requirement for the
degree of Master of Commerce (M.com). Their by no part of this project
has ever been submitted any other degree.

PRAFUL K. VEGDA
Roll No.
M.com (part-1)

INDEX
Sr.n
o.
1
2
3
4
5
6
7
8
9

Contents
Introduction Of SWOT
Objective
Research Methodology
Profile Of Company
Different Products Of Voltas
Strengths
Weakness
Opportunities
Threats
Conclusion
Bibliography

SWOT analysis - Introduction

A SWOT analysis (alternatively SWOT matrix) is

a structured planning method used to evaluate
the strengths, weaknesses, opportunities and
threats involved in a project or in
a business venture. A SWOT analysis can be
carried out for a product, place, industry or person.
It involves specifying the objective of the business
venture or project and identifying the internal and
external factors that are favorable and unfavorable
to achieve that objective. Some authors credit
SWOT to Albert Humphrey, who led a convention at
the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data
from Fortune 500companies.[1][2] However,
Humphrey himself does not claim the creation of
SWOT, and the origins remain obscure. The degree
to which the internal environment of the firm
matches with the external environment is
expressed by the concept of strategic fit.
Strengths: characteristics of the business or
project that give it an advantage over others.
Weaknesses: characteristics that place the
business or project at a disadvantage relative
to others.
Opportunities: elements that the project
could exploit to its advantage.

 Threats: elements in the environment that

could cause trouble for the business or
project.
Identification of SWOTs is important because
they can inform later steps in planning to
achieve the objective.
First, the decision makers should consider
whether the objective is attainable, given the
SWOTs. If the objective is not attainable a
different objective must be selected and the
process repeated.
Users of SWOT analysis need to ask and answer
questions that generate meaningful information
for each category (strengths, weaknesses,
opportunities, and threats) to make the analysis
useful and find their competitive advantage.

Internal and external factors

So it is said that if you know your enemies and
know yourself, you can win a hundred battles
without a single loss. If you only know yourself, but
not your opponent, you may win or may lose. If you
know neither yourself nor your enemy, you will
always endanger yourself.
The Art of War by Sun Tzu
SWOT analysis aims to identify the key internal and
external factors seen as important to achieving an

objective. SWOT analysis groups key pieces of

information into two main categories:
1.internal factors
the strengths and weaknesses internal to
the organization
2.external factors
the opportunities and threats presented by
the environment external to the
organization
Analysis may view the internal factors as
strengths or as weaknesses depending upon
their effect on the organization's objectives.
What may represent strengths with respect to
one objective may be weaknesses (distractions,
competition) for another objective. The factors
may include all of the 4Ps; as well
as personnel, finance, manufacturing capabilities
, and so on.
The external factors may
include macroeconomic matters, technological
change, legislation, and sociocultural changes,
as well as changes in the marketplace or in
competitive position. The results are often
presented in the form of a matrix.
SWOT analysis is just one method
of categorization and has its own weaknesses.
For example, it may tend to persuade its users to

compile lists rather than to think about actual

important factors in achieving objectives. It also
presents the resulting lists uncritically and
without clear prioritization so that, for example,
weak opportunities may appear to balance
strong threatIt is prudent not to eliminate any
candidate SWOT entry too quickly. The
importance of individual SWOTs will be revealed
by the value of the strategies they generate. A
SWOT item that produces valuable strategies is
important. A SWOT item that generates no
strategies is not important.

Strengths

Weakness Opportuni
es
ties

Threats

Reputation in Shortage of
marketplace consultants
at operating
level rather
than partner
level

Well
established
position with
a well
defined
market niche

Large
consultancie
s operating
at a minor
level

Expertise at

Identified

Other small

Unable to

partner level deal with

in HRM
multiconsultancy disciplinary
assignments
because of
size or lack
of ability

market for
consultancy
in areas
other than
HRM

Objective of Studies-:

consultancie
s looking to
invade the
marketplace

->To Study the profile of VOLTAS LTD. company and

to evaluate the SWOT analyses of VOLTAS LTD
company.

Research Methodology -:
Secondary Data Secondary data is data
collected by someone other than the users
common source of secondary data for social
science included censuses, organizational records
and data collected through qualitative
methodologies or qualitative research.

Sources of Secondary data1) External data is data that is collected by other

people or organization from your organizations
external environment.
2) Internet sources. E.g. Google chrome, Wikipedia

VOLTAS LTD

Voltas Limited is an engineering, air

conditioning and refrigeration company based
in Mumbai, India. It makes equipment for industries
in areas such as heating, ventilation and air
conditioning, refrigeration, construction equipment,
materials handling, water management, building
management systems, indoor air quality and
chemicals.
The Company was Incorporated on 6 September
1954 at Mumbai. The Company was promoted in
1954 by M/s. Volkart Brothers and Tatas
Voltas is a part of the Tata Group. The managing
director is Mr. Sanjay Johri. Its shares are traded on
the Bombay Stock Exchangeunder symbol 500575
with a turnover of INR 5364.35 crore in 2011-12.

Voltas provided the air-conditioning for the world's

biggest ocean liner, the RMS Queen Mary 2 and
also the world's tallest building, the Burj Khalifa.[7]
The Voltas company has large Service Network.
Voltas has its own service center in each major city.
In 2014, Voltas was ranked 39th among India's
most trusted brands according to the Brand Trust
Report, a study conducted by Trust Research
Advisory.[8]

Voltas Limited

Type

Public company
(BSE: 500575)

Industry

Home appliances
Engineering

Founded

1954[1]

Headquarters

Voltas House, Mumbai, India

Products

Heating, Ventilation and Air

conditioning, Refrigeration

Revenue

53.66 billion(US$810 million)

(2014)[2]

Operating
income

3.4 billion (US$51 million)

(2014)[3]

Net income

2.45 billion (US$37 million)

(2014)[4]

Total assets

47.45 billion(US$720 million)

(2014)[5]

Total equity

18.19 billion(US$270 million)

(2014)[6]

Website

Voltas official website

HISTORY
Voltas is one of the world's premier engineering
solutions providers and project specialists. Founded
in India in 1954, the company offers engineering
solutions for a wide spectrum of industries in areas
such as heating, ventilation and air conditioning,
refrigeration, electromechanical projects, textile
machinery, mining and construction equipment,
materials handling equipment, water management
& treatment, cold chain solutions, building
management systems, and indoor air quality.
With manufacturing units at Thane, Dadra and
Pantnagar, Voltas possesses total capability in the
manufacture of room/split air conditioners,
industrial air conditioning and refrigeration
equipment, water coolers, commercial
refrigerators, visicoolers and freezers, as well as
forklift trucks, cranes, warehousing and
construction equipment. All these products bear
the stamp of stateoftheart plant, machinery and
processes, resulting in consistently high quality and
reduced costs.
Business area of the company
ElectroMechanical Projects & Services

Electrical, Mechanical & Refrigeration Solutions

Electrical & Mechanical Solutions

(international)

Water Management & Treatment

Engineering Products & Services

Textile Machinery

Mining & Construction Equipment

Materials Handling Equipment

Unitary Cooling Products

Air Conditioners

Commercial Refrigeration

Water Coolers & Dispensers

Subsidiaries

Rohini Industrial Electricals

Universal Comfort Products

Weathermaker

Saudi Ensas Company

Metrovol FZE

VIL Overseas Enterprises B V

Awards/ Recognition

20082009: Top industry honours at UAE and

Silver LEED certification.

20062007: Export Excellence Award and

Project Export Promotion Council (PEPC).

20052006: Maximum foreign exchange earned

and repatriated to India from overseas
construction and engineering projects and second
place in the category of 'maximum turnover in
overseas construction and engineering projects.

20042005: Maximum foreign business

attempted.

20032004: Maximum foreign works secured in

new areas and secondbest performance in the
category of 'maximum turnover from overseas
construction contracts.

20022003: Maximum foreign exchange earned

& repatriated to India from overseas construction
contracts and secondbest performance in the
category of maximum turnover from overseas
construction contracts.

20012002: Maximum overseas construction

contracts secured and secondbest performance
in the category of 'maximum foreign exchange

earned and repatriated to India from overseas

construction contracts.

19992000: Secondbest performance in the

category of maximum foreign exchange earned
and repatriated to India from overseas
construction projects.

19981999: Maximum turnover in overseas

construction projects.

19971998: Secondbest performance in the

category of foreign exchange earned and
repatriated to India from overseas construction
contracts.

Achievements

Voltas leads in air conditioning projects in

India.

Voltas is India's largest exporter in the field of

electromechanical projects.

Voltas manufactures one of India's leading air

conditioner brands.

Voltas is one of India's most trusted names in

supply, service and support of mining and
construction equipment.

Voltas leads in sourcing, installing and

servicing stateoftheart textile machinery in
India.

Voltas is a leader in forklift trucks,

manufactured to inhouse design.

Company Profile Details

Voltas Ltd.

Chairman : Ishaat Hussain

Industry : Diversified

Mkt Cap.(Cr.)

8758.5
2

Book
Valu
e

63.5
3

Face
Valu
e

1.00

03/08/2015

Price/BookValu
e

4.17

EPS

11.6
2

P/E

22.7
9

264.7

52WeekH/L

360/21
8

Div
Yield

0.85

M/L

ISIN No

INE226A0102
1

Bookclosur
e
Price

The Profile page of the company captures the details in brief on Company's Address,
Top management, Listings in detail.
Registered Office
Voltas House `A', Dr. Babasaheb Ambedkar
Road, Chinchpokli Mumbai, Maharashtra 400033
Tel: 022-66656666
Fax: 022-66656231
Email: shareservices@voltas.com
Website: www.voltas.com

Registrar & Share Transfer Agent

TSR Darashaw Ltd.
No. 6-10, Haji Moosa Patrawala Ind.
Estate, 20, Dr. E. Moses Road, Mumbai 400011, Maharashtra.
Tel: 66568484
Fax: 66568494
Email: csg-unit@tsrdarashaw.com
Website: http://www.tsrdarashaw.com

Key Officials
Name

Designation

Sanjay Johri

Managing Director

V P Malhotra

Vice President (Legal) & Co. Secretary

Other Details

Business Group

Tata Group

BSE Code

500575

NSE Code

VOLTASEQ

Listings

BSE , MCXSX , NSE

Incorporation

06/09/1954

Quarterly Trends

(Rs. in crore)

Year Ends (Months)

Last 4 Quarters
201506(3)

201503(3)

201412(3)

201409(3)

1,558.15

1,507.71

954.35

967.59

Other Recurring Income

21.38

30.22

30.90

58.72

Operating Profit

84.84

122.77

35.25

58.22

0.00

0.00

0.00

0.00

Reported PAT

82.25

88.41

97.40

81.90

Equity Capital

33.07

33.07

33.07

33.07

OPM (%)

5.44

8.14

3.69

6.01

GPM (%)

0.00

0.00

0.00

0.00

NPM (%)

5.27

5.86

10.20

8.46

Operating Income

Gross Profit

Annual Trends

(Rs. in crore)

Year Ends (Months)

Last 4 Annual Results

201503(12)

Equity Capital

201403(12)

201303(12)

201203(12)

33.07

33.07

33.07

33.07

Reserves & Surplus

1,806.44

1,564.87

1,449.53

1,330.59

Operating Income

5,168.95

5,151.36

5,565.43

5,169.76

Operating Profit

304.93

163.73

193.41

301.97

Other Income

149.11

131.46

96.96

110.81

Reported PAT

329.23

181.48

180.07

151.87

OPM (%)

5.89

3.17

3.47

5.84

NPM (%)

6.36

3.52

3.23

2.93

EPS (Rs.)

9.95

5.48

5.44

4.59

PRODUCTS OF VOLTAS

SWOT ANALYSIS
VOLTAS

Parent
Company

TATA GROUP

Category

ELECTRONES, EQUIPMENTS, AIR

CONDITIONS
Sector

CONUSMER ELECTRONICS

Tagline/
Slogan
USP

RELIABLE SERVICE AND VAST

DISTRUBUTOR NETWORK
STP

Segment

ELECTRO MACHENICAL
PROJECTS, ENGINEERING
COOLING SOLUTION

Target
Group

CONSTRUCTION BUSINESS
MIDDLE & UPPER CLASS
INDIVIDUAL

Positioning ALL WEATHER AIR CONDITION

SWOT Analysis
Strength

1. Voltas is Indian largest air

conditioning company
2. Sustained growth in revenue
and profitability in textile

business.
3. Leader in terms for market
share in cooling products
segments.
4. Rated amount the top in brand
equity index-the highest amount
all pure ac brands
5. Creative R & D and marketing
in the cooling solution business.

Weakness

1. Decreasing operating profit

over the past year in a concern.
2. Depended on copper for electro
mechanical projects (while
cropper prices a rising) keep the
profit margin lower.
1. Recovering construction
market in middle east.
2.growing demand for yarn in
domestic and global market
leading to increase sales for its
textile machinery business
3.lower market presentation in

Indian ac industry implies huge

Opportunity potential for growth

Threats

1. Sluggish economic and

exchange rate fluctuation, playing

spoilsport.
2. Increase competition for
Japanese brand in cooling
products.
3. Apparent climatic shift toward
shorter summer (more sales
during summer) especially in
north Indian.

competitors

1.Samsungs.
2.2. Lg.
3.Blue stars
4.Alemco

COCLUSION
Employees Employees tend to be more productive
if their superiors and management tend to display
trust, praise, and commitment Within Volta, Inc.
employee turnover is high according to the
readings (because of their low compensation
packages). This could be a problem on their part
since...

BIBLIOGRAPHY

www.google.com
www.voltas.com
http://en.wikipedia.org/wiki/
/