Tata Considering Sale of Voltas Home Appliance Business, Sources Say
Tata Group is considering selling the home appliance operation of Voltas Ltd. as the Indian conglomerate foresees difficulties in scaling up the business in a competitive market, according to people familiar with the matter.
(Bloomberg) -- Tata Group is considering selling the home appliance operation of Voltas Ltd. as the Indian conglomerate foresees difficulties in scaling up the business in a competitive market, according to people familiar with the matter.
Tata Group’s management is deliberating the possibility of the sale and hasn’t decided whether to include its local joint venture with Arcelik AS in a deal, the people said, asking not to be identified because the information is private. Considerations are at an early stage and Tata Group may decide to keep the asset for longer, the people said.
A representative for Tata Group declined to comment when previously reached by Bloomberg News. In a later statement to the exchange on Tuesday, Mumbai-listed Voltas denied the development and said the report is “totally incorrect.”
“Voltas reaffirms its commitment to the home appliances business, and the company will further strengthen its market leading position in the categories that it represents,” Voltas said in the statement.
Shares in Voltas have risen about 2% in Mumbai this year, giving the company a market value of around $3.2 billion.
Founded in 1954, Voltas manufactures products including air conditioners and water coolers as well as commercial refrigeration units, according to its website. It has a presence across India, the Middle East, Southeast Asia and Africa.
The company also has a joint venture in India with Arcelik and launched a range of home appliances under the brand Voltas Beko in the domestic market.
Voltas Beko reported revenue of around 96.7 billion rupees ($1.2 billion) in the latest financial year. As of Sept. 30, Voltas Beko had a market share of 3.3% for refrigerators and 5.4% for washing machines in India, its quarterly earnings report shows.
(Updates with Voltas’s exchange filing from third paragraph.)
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