Voltas, Atomberg Innovation plan 50:50 venture to manufacture AC compressors

Tata group firm Voltas and Atomberg Technologies’ engineering arm plan to set up a 50:50 joint venture to develop and manufacture room air conditioner (AC) compressors in India, reviving Voltas’ efforts to localise a critical component while expanding Atomberg Innovation’s industrial business.

Voltas’ board approved a binding term sheet with Atomberg Innovation Private Limited on Friday, an exchange filing showed. The venture will be owned equally, although Voltas will nominate three directors to its five-member board and Atomberg Innovation two. Voltas owns no stake in Atomberg Innovation.

The filing did not disclose the capital commitment, plant location, capacity, or production timeline. The transaction remains subject to due diligence, definitive agreements, and approvals. Voltas said the venture would develop indigenous compressor technology, strengthen supply-chain resilience, and reduce dependence on concentrated global suppliers.


The new venture comes at a time when Atomberg is considering spinning off Atomberg Innovation, currently a wholly-owned subsidiary, and looking to raise a Rs 150-200 crore round led by Mirae Asset Management. ET first reported this on July 29.

Atomberg Innovation, led by Atomberg cofounder Manoj Meena, develops motors, controllers, and compressors for appliance manufacturers. It recorded Rs 17 crore in FY25 revenue and had secured orders from Voltas and Bajaj, making the venture an expansion of an existing supplier relationship.

Meanwhile, its parent Atomberg Technologies plans to file draft papers in the coming weeks for a Rs 1,500-2,000 crore IPO comprising fresh shares and an offer for sale. It converted into a public company on July 31. Its FY25 operating revenue rose 20% to Rs 958.4 crore, while net loss narrowed 41% to Rs 117.4 crore.

Voltas is India’s largest room air-conditioner maker, with a market share of nearly 18%; the category generates about two-thirds of its revenue.

The agreement revives an earlier attempt by Voltas to manufacture compressors locally. In 2023, it terminated a joint venture with Hong Kong-based Highly International after government approval was not forthcoming. Highly was to own 60% of that venture, which planned to make inverter compressors, motors, and associated components in India.