Voltas denies reports of Tata considering sale of home appliance business

Voltas Ltd on Tuesday, November 7, refuted reports claiming that its parent company Tata Group is considering to sell its home appliance business. The company, in a regulatory filing, said the reports were “totally incorrect and blatantly false, with no factual basis whatsoever.”

It further added that the report, initially published by Bloomberg, has caused "embarrassment, apart from concerns including by the shareholders/investors" and stated that it is separately taking up the matter with the news site to issue a necessary clarification.

"The company is a market leader in room air conditioners and its joint venture with Arcelik for Voltas. Beko products is one of the fastest growing brands in the Appliances business. The organization continues to outperform the market, and exceed revenue targets in all its product categories," the company said.

It further re-affirmed its commitment to the home appliances business, and said the company will further strengthen its market leading position in the categories that it represents.

Bloomberg had reported that 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, the report added further.

Established in 1954, Voltas manufactures products including air conditioners, air coolers, refrigerators, water coolers, commercial refrigeration units, among others, 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 Group and launched a range of home appliances under the brand Voltas Beko in the domestic market.

Last month, Voltas reported a consolidated net profit of Rs 36 crore for the second quarter ended September 30. The company had reported a net loss of Rs 6 crore in the July-September period of the last fiscal.

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