Voltas Ltd. has denied news reports that the Tata Group is considering selling the home appliance operations of the company.
The report that appeared on Bloomberg, and was also picked up by a few other publications is “totally incorrect and blatantly false, with no factual basis whatsoever”, the company said in an exchange filing on Tuesday.
Bloomberg reported that the Tata Group is considering selling the home appliance operation of Voltas, as the conglomerate foresees difficulties scaling up the business in a competitive market, quoting 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, it further said.
Voltas said that the news “caused embarrassment”, apart from concerns among shareholders, and is separately taking up the matter with Bloomberg to issue a necessary clarification.
“Voltas re-affirms its commitment to the home appliances business, and the company will further strengthen its market-leading position in the categories that it represents,” it said in a statement.
Shares of Voltas closed 1.70% lower at Rs 813.8 apiece, as compared with a 0.03% decline in the benchmark Nifty 50 on Tuesday.
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