R&D and Innovation in Energy Efficient Products slide image

R&D and Innovation in Energy Efficient Products

May 2020 International Growth - India • Why India? Huge potential with its large population size and economic growth expectation • 2nd largest country (1.3 billion) in terms of population (18% of World's total) • 248 million households About Voltas - Our JV Partner . • Part of India's largest conglomerate TATA Group • Leading player in Indian A/C market • . Stable GDP growth over the years ✰ Average of 7.3% in 2010-2015 period Expected GDP growth in 2016-2021 is 7.8% (CAGR) • An estimated market size of 12 million units of refrigerators and 6.5 million units of washing machines (worth app. USD 4.5 billion) • Low penetration for home appliances, resulting in high growth rates (CAGR of 9% for MDA9* in 2006- 16 period) • Sales of USD 895 mln. in 2015/16 FY JV at a Glance Arçelik A.Ş. Leverage both parties strengths: Arcelik's technology and brand image; Voltas' local expertise and sales network Total CAPEX of USD 155 mln. in 10 years • USD 100 mln. capital • Arcelik started supplying products to the JV in 2H18, and sales to India reached around TRY 100 mn in 2019. Around 10% market share and USD 1 bln. revenue in 10th year Products are labelled under Voltas-Beko co-brand. Refrigerator plant in Gujarat started mass production by January 2020. Arçelik
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