Voltas refutes reports of Tata mulling sale of home appliance business

livemint.com:

Voltas Home Appliance Business’ which appeared on Bloomberg, which was also picked up by few other publications/channels, without ascertaining the facts from the Company’s officials before publishing the same. 'In this connection, we wish to categorically state that the aforesaid news is totally incorrect and blatantly false, with no factual basis whatsoever. The Management therefore denies any such development," the company said in a regulatory filing.

The Company is a market leader in room air conditioners and its Joint Venture with Arcelik for Voltas.Beko products is one of the fastest growing brands in the Appliances business. The organization continues to outperform the market, and exceed revenue targets in all its product categories. Voltas re-affirms its commitment to the Home Appliances business, and the Company will further strengthen its market-leading position in the categories that it represents.

Earlier Bloomberg 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.

Considerations are at an early stage and Tata Group may decide to keep the asset for longer, the people said. A representative for Tata Group declined to comment. Shares in Voltas have risen about 3% in Mumbai this year, giving the company a market value of around $3.3 billion.