A four-figure annual output of forklift trucks is just one of several planned competitive thrusts
On 25th January 2007, Voltas' Thane works saw the celebration of a significant event: the roll-out of the 1000th forklift truck to be manufactured in FY2006 – with two months still remaining in the year. In fact, it was the first time the Materials Handling business had hit the annual four-figure mark in the product category.

It's no accident, but rather part of a systematic strategy to tap into a market which is seeing some exciting growth - 30% in the last year compared with an average of 20-25% in the previous five years, propelled by increasing investment in numerous sectors. The market today stands at about Rs 800 crores, with growth expected to be sustained for at least the next half-decade. Voltas' response has been to consciously 'forklift' itself into a more competitively advantageous position - in many and varied ways.

Investment in retail & manufacturing makes a material difference
Among the phenomena driving the market growth: manufacturing capacity addition in sectors like automobiles, engineering, steel, plastics and chemicals, among others. Substantial growth in retail chains for food and beverages, pharmaceuticals and mall-type multi-product outlets. Projects in railways, power, airports, urban construction and other infrastructural development. All adding up to fast-rising need for equipment for materials movement, warehousing and supply chain operations.

It's no wonder that foreign manufacturers' radar screens are lighting up with signals of rising opportunities. It's attracted foreign players such as Toyota, Daewoo, Linde, and Chinese supplies like Dalin and Heli. In the last year, these global outfits have supplied over 200 machines, creating a noticeable impact on the industry...and posing a challenge to which Voltas is rising in a concerted manner.

A comprehensive competitive plan
The key to Voltas' response is to recognise and build on its distinctive competitive offerings. These are primarily ruggedness and reliability, suitability for Indian conditions, competitive pricing, ease of servicing, and low operation and maintenance costs, aided by wider service reach and accessibility.

Voltas' mission is to sharpen its edge in these very areas, while increasing speed of delivery and manufacturing capacity - of which the 1000th forklift truck is just the start. Over the next three years, additional facilities will be developed. The Company will engage in a continuing drive towards pricing advantages, even better market coverage and after-sales support, and closer relationships with customers.

It is also intended to build up a more comprehensive line-up of products, which will include stackers, pallet trucks, container stackers and other new introductions, as well as new models of forklifts and cranes to widen the customer's choices.

Voltas will also seek ongoing improvement in those areas in which overseas players are seen as superior - especially product features, ergonomics, styling, finish, and superiority in some components such as engines, transmission and hydraulics.

Improving that personnel touch
Another challenge to be engaged is the deficit of trained and qualified service engineers, whose numbers are not keeping pace with the sectoral growth. Voltas is thus head-hunting in related industries such as construction equipment, automobiles and farm equipment, and helping them cross over. There is also a programme of training fresh engineers and ITI mechanicals, and use of franchisees as support resources.

It's a need to be addressed, but not one that is impeding the Company's growth in volumes for forklifts, warehousing equipment and cranes. With its milestone capacity expansion at its Thane works, Voltas has shown that the demands of growth are not too great a load to carry.