Voltas Ltd, a subsidiary of Tata Group, has denied reports that its home appliance business is up for sale. The company issued a regulatory filing stating that the reports were “totally incorrect and blatantly false, with no factual basis whatsoever”.
The report, initially published by Bloomberg, has caused embarrassment and concern among shareholders and investors. Voltas further added that it is separately taking up the matter with the news site to issue a necessary clarification.
Voltas is a market leader in room air conditioners and has a joint venture with Arcelik for Voltas Beko products, which is one of the fastest growing brands in the appliances business.
The company continues to outperform the market and exceed revenue targets in all its product categories. Voltas has reaffirmed its commitment to the home appliances business and stated that it 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, reported Business Today.
Established in 1954, Voltas manufactures products including air conditioners, air coolers, refrigerators, water coolers, commercial refrigeration units. It has a presence across India, the Middle East, Southeast Asia and Africa. Last month, Voltas reported a consolidated net profit of ₹36 crore for the second quarter ended September 30.
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