Tata Group considering sale of Voltas home appliance business: Sources

Tata Group is reportedly exploring the possibility of selling the home appliance division of Voltas Ltd. due to concerns about scaling up the business in a highly competitive market. The consideration is in its early stages, and Tata Group's management has yet to decide whether its local joint venture with Arcelik AS will be part of the deal, as reported by sources familiar with the matter. Shares in Voltas have witnessed a 3% increase in Mumbai this year, resulting in a market value of approximately $3.3 billion for the company.

Voltas, founded in 1954, is a manufacturer of various products, including air conditioners, water coolers, and commercial refrigeration units. The company has a substantial presence in India, the Middle East, Southeast Asia, and Africa. It also established a joint venture with Arcelik in India, launching a range of home appliances under the brand Voltas Beko in the domestic market.

 In the latest financial year, Voltas Beko reported revenue of around 96.7 billion rupees ($1.2 billion) and held a market share of 3.3% for refrigerators and 5.4% for washing machines in India as of September 30, according to its quarterly earnings report.