Tata Group is reportedly exploring the potential sale of the home appliance division operated by Voltas, a subsidiary under its umbrella.
What Happened: The Indian conglomerate is likely facing a challenge in expanding this business amid an increasingly competitive market, Bloomberg reported, citing sources familiar with the situation.
The management at Tata Group is currently engaged in deliberations about the feasibility of such a sale. However, they have not reached a definitive decision on whether to include their local joint venture with Arcelik AS in the deal.
These sources emphasised to the business publication that these considerations are at a relatively early stage. Tata Group may ultimately choose to retain this asset for an extended period.
Voltas, founded in 1954, specializes in manufacturing a diverse range of products, including air conditioners, water coolers, and commercial refrigeration units. It is present across India, the Middle East, Southeast Asia and Africa.
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This move to potentially divest the home appliance business comes at a time when Voltas’ shares have risen around 3% this year, giving the company a market value of around $3.3 billion (₹27,475 crore).
Voltas has established a joint venture in India with Arcelik and introduced a series of home appliances bearing the Voltas Beko brand to the domestic market.
Price Action: Voltas’ share price was down 1.7% at ₹813.80 near the end of trade on Tuesday.
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