Voltas rivetted to its 52-week high of Rs 68.70 in early trades as the counter was rife with rumours that the company is likely to bag a huge order.

Even as the scrip eased from that high as trading progressed, it was still placed higher than yesterday's close, at Rs 66.70, up 7.06%. A total of 75,643 shares were traded on BSE by 11:10 IST. The stock of Voltas has now risen 33.4% from Rs 50 on 11 April 2003.

Rumours are abounding that the company is likely to bag a huge export order.

Early this month, Tata group company Voltas announced the bagging of an order worth Rs 26.25 crore from the Government of Gujarat. The order encompasses three pumping projects, to be executed by the end of the year. The project is designed to alleviate the recurring drought in north Gujarat caused by the continuous depletion of water levels in the Dharoi reservoir.

Earlier, the company had embarked on brushing up its brand equity with increased allocation towards marketing initiatives and marketing communications. The company has planned an expenditure of Rs 18 crore for FY 2003-04. It also plans to continue its focus on the household segment, which is estimated to grow much faster than the institutional segment, at a compounded annual growth rate (CAGR) of 27% for the next three years.

In order to meet the demands of new emerging markets and increasing customer expectations, Voltas plans to introduce, in the coming season, a range of new products in window and split air conditioners: slimline and ductable splits and water dispensers. These products would help it to grow by 30% in the coming season, the company expects.

The company also plans to widen its reach by increasing its retailers from 400 to 750 and dealers from 270 to 300, within the next 12 months. Additionally, 20 outlets exclusively selling Voltas products, titled 'Voltas Dome', have been opened all over India. Their numbers will also treble by the end of this year, the company said.

Through all these concerted strategic initiatives, Voltas has set its sights on increasing market share from the current 11% to 15% in the Indian air-conditioner segment, in spite of formidable competition from multinational companies

Promoted in 1954 by Tata Sons and Volkart Brothers, a Swiss firm operating in India since 1851, Voltas has established a strong leadership presence as India's premier air-conditioning company and as a provider of engineering and back-up services. The company's strengths lie in design and manufacture of industrial equipment, management and execution of electro-mechanical projects, sourcing, installation and servicing of technology based systems and representation of global technology leaders, serving diverse industrial sectors and application.

Its products include room airconditioners and refrigeration equipment, water coolers, forklift trucks, cranes, pumps and modular office furniture systems. The products have the stamp of automated manufacturing plants bearing ISO 9001 certification, resulting in consistent high quality and reduced costs. The company's sourcing and marketing operations cover textile machinery, machine tools, mining and construction equipment and industrial chemicals. In these sectors, Voltas demonstrates its specialised engineering expertise, as well as its extension network of global sources.

For the third quarter ended 31 December 2002, the company recorded a massive rise in net profit to Rs 2.85 crore (Rs 0.04 crore) on a 38% jump in net sales to Rs 251.24 crore (Rs 182.33 crore).

Recently in June 2003, there were reports that Tatas (through Tata Sons) have further raised their holding in Voltas by acquiring the Andhra Pradesh government's 2.6% stake at a price of Rs 60.50 per share. Last year (in FY 2002-03), the Tatas had increased their stake in Voltas to stave off a takeover attempt by an Ahmedabad based company. The promoters increased their stake to 25.69% as on 31 December 2002 from 24.85% as on 31 March 2002.

As on 31 December 2002, the public and institutions held 31.65% and 23.20% respectively.