Tata Group is considering the possibility of selling the home appliance division of Voltas, due to challenges encountered in expanding this business in a fiercely competitive market.
According to sources cited by Bloomberg, the management of Tata Group is currently engaged in discussions regarding this potential sale and has not yet arrived at a decision concerning whether to include their local joint venture with Arcelik AS in the deal.
It may be noted that these considerations are in their early stages, and Tata Group might ultimately choose to retain this asset for an extended period.
Voltas, established in 1954, is engaged in the manufacturing of various products, including air conditioners, water coolers, and commercial refrigeration units. The company’s operations span across India, the Middle East, Southeast Asia, and Africa.
This year, the company’s shares have seen an increase of approximately 3 per cent, resulting in a market value of around USD 3.3 billion.
Furthermore, Voltas has a collaboration with Arcelik in India and has introduced a line of home appliances under the brand Voltas Beko in the domestic market.
In the most recent financial year, Voltas Beko reported revenues of roughly USD 1.2 billion. As of 30 September, their market share in India was at 3.3 percent for refrigerators and 5.4 percent for washing machines, as per their quarterly earnings report.
