Voltas Set to Increase AC Prices Amid Rising Copper Costs and Weakening Rupee

Voltas, a leading air conditioning manufacturer, is preparing to increase AC prices by 5-15% this year due to a notable rise in copper prices and the depreciation of the rupee against the dollar. Managing Director Mukundan Menon highlighted this in an interaction on Tuesday.

The company, which holds an 18% market share in the domestic scene, forecasts a 15-20% rise in domestic sales by 2026, rebounding from last year's challenges. Increased production costs are attributed to energy efficiency upgrades requiring more materials such as copper, aluminium, and steel.

To counter rising costs, Voltas plans to enhance its production capacity while aiming to boost the localization of components from 70% to 90% over two years. These efforts are part of the company's strategy to maintain its market leadership and work with the government to boost exports.