Voltas Ltd on Tuesday, November 7, issued a statement denying media reports that its parent company, Tata Group, is planning a sale of its home appliance division.
In the statement, sent to the Bombay and National stock exchanges, the company said that the news, originally reported by Bloomberg, was “totally incorrect and blatantly false, with no factual basis whatsoever”.
Bloomberg, earlier in the day, had reported that Tata Group was considering selling Voltas as the Indian conglomerate foresaw difficulties in scaling up the business in a competitive market.
Voltas denied the report saying that it continues to outperform the market and exceed revenue targets in all its product categories.
Shares in Voltas have risen about 3% 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 $1.2 billion in the latest financial year. As of September 30, Voltas Beko had a market share of 3.3% for refrigerators and 5.4% for washing machines in India, its quarterly earnings report shows.
(With inputs from Bloomberg)
First Published: Nov 7, 2023 1:32 PM IST
