According to Voltas managing director ND Khurody, the company expects to offer VRS to 80 per cent of the 1,700 employees while the rest would be leaving the company through the normal retirement process.

Khurody explained that over the next two years the company's focus would be on efficient cost management. "We have no choice otherwise we will drown," he said. The company is also planning to reduce costs in its production process through intensive application of information technology. Khurody said Voltas is reducing the number of in-house processes such as manufacturing of compressors. This would enable the company to reduce the delivery period from 15-20 days to five days as well as make the production line more need-based, he added.

According to Khurody, Voltas wouldconcentrate on maximum value addition and outsource most of the components. He said the company has identified two businesses as its core areas -- air-conditions and engineering trading.

The company has facilities in Thane, Chinchpokli, Sanat Nagar and Dadra in Maharashtra, and, in Calcutta and Delhi. Voltas is also planning to double its capacity in Dadra, Khurody said.

With the hiving off of all its white goods division, Voltas is currently restructuring its position as an engineer-focussed group. However, the company has no plans to spin off its AC business. On the subject, Khurody said without the AC business the company would lose its "jacket".

Significantly, the company has launched a range of new ACs. The new range comprises Voltas Vectra, Voltas Verdant, Voltas Vertis and Voltas Visionaire. The new range is in the healthcare category which would have the unique feature -- "Electrostatic Dust Absorber".

Significantly, in 1998 Voltas' 1.5 tonne room air-conditioner was the largest selling modelin the category, which constitute 70 per cent of the total room AC market.

The company is now looking at both the high-end as well as low-end of the AC market. In the engineering trading business, Voltas is into areas like textile machineries and pumps. The engineering division of Voltas has got a shot in the arm when it bagged an order worth Rs 671 crore from Coal India Ltd.