Tata Group is considering selling Voltas Ltd’s home appliance operations as the Indian company foresees difficulties growing the business in a competitive market, according to people familiar with the matter.
Tata Group management is mulling the possibility of a sale and has not decided whether to include the local joint venture in a deal with Arcelic AS, the people said, asking not to be identified as the information is private.
Considerations are at an early stage and the Tata group may decide to hold the asset for longer, the people said. A representative for the Tata Group declined to comment.
Shares of Voltas have risen about 3 percent this year in Mumbai, giving the company a market value of about $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, Middle East, Southeast Asia and Africa.
The company also has a joint venture with Arcelik in India and has launched various home appliances under the Voltas Beko brand in the domestic market.
Voltas Beko reported revenue of about 96.7 billion rupees ($1.2 billion) in the last financial year. As of September 30, Voltas Beko had a market share of 3.3 percent for refrigerators and 5.4 percent for washing machines in India, its quarterly earnings report showed.
