New Delhi: 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 longer, the people said. A representative for Tata Group declined to comment.
Shares in Voltas have risen about 3 per cent in Mumbai this year, giving the company a market value of around $3.3 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 per cent for refrigerators and 5.4 per cent for washing machines in India, its quarterly earnings report shows.
Founded in 1954, Voltas manufactures a variety of products, which include air conditioners, water coolers, and commercial refrigeration units. The company operates in regions such as India, the Middle East, Southeast Asia, and Africa.
This year, the company’s shares have witnessed a growth of roughly 3%, resulting in a market valuation of approximately $3.3 billion. Additionally, Voltas has formed a partnership with Arcelik in India and has introduced a range of home appliances under the brand Voltas Beko in the Indian market.
In the most recent fiscal year, Voltas Beko reported revenues of about $1.2 billion. According to their quarterly earnings report as of September 30, their market share in India was 3.3% for refrigerators and 5.4% for washing machines.