The Tata Group is considering the sale of the home appliances division of Voltas, Bloomberg reported on Tuesday. Tata owns nearly 30% stake in the ₹27,400 crore ($3.29 billion) company.
According to the report quoting people familiar with the matter, the Indian conglomerate anticipates challenges in expanding the business in a competitive home appliances market.
Voltas specializes in a comprehensive range of cooling solutions including room air conditioners, air coolers, air purifiers, water dispensers, water coolers, commercial refrigeration, and commercial air conditioning products, with its businesses spread across India, the Middle East, Southeast Asia, and Africa.
Incorporated in 1954, the company was jointly promoted by Switzerland’s Volkart Brothers and India’s Tata Sons Pvt Ltd. The company operates in three segments — unitary cooling products, electro-mechanical projects and services, and engineering products and services.
Voltas also has a joint venture in India with Turkey-based Arcelik and offers a range of home appliances under the brand Voltas Beko. The Bloomberg report did not confirm whether the joint venture would be included in the deal.
Besides its home appliance operation, Voltas offers commercial heat, ventilation, and air conditioning (HVAC) and mechanical, electrical, and plumbing (MEP) solutions. It works with the central and state governments in India for various rural electrification and water management projects. It is also one of the leading contractors in the Middle East with businesses in the United Arab Emirates, Oman, Qatar, and Bahrain, according to the company website.
Under its engineering products and services business, Voltas offers sale, distribution, and after-sales services of textile machinery and mining & construction equipment.
Most of Voltas’s business, however, comes from its unitary cooling products.
According to its quarterly results, Voltas reported a consolidated total income of ₹2,364 crore ($284 million) in the quarter ended 30 September 2023, 29% higher than ₹1,833 crore ($220 million) in the corresponding quarter last year. Of these, ₹1,209 crore ($145 million) came from its unitary cooling products business.
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