Logistics (Physical Distribution Management) at Voltas

Abstract

Refrigerator Business Group (RBG), a division of Voltas Ltd., is producing 2.5 lakh refrigerators from its plant at Warora, Maharashtra. It has a licensed capacity of 5 lakh units and is planning to increase its production capacity. The firm has two options: to expand the existing plant at Warora or to set up a new plant elsewhere. This case is an attempt to identify different potential locations for the new plant. It identifies key considerations for the location decision: potential market spread, distribution costs, market share, and area-specific benefits. It also provides information about the current market spread of Voltas, sales figures, capacities and locations of competitors, sources of raw material, Voltas' distribution network, various cost elements in distribution, and taxes.