The Tata Group, India’s largest conglomerate, is considering the sale of its home appliances business, Voltas, as it finds it challenging to expand in a highly competitive market.
According to media reports, the Tata Group is in the early stages of talks with other players in the market to sell its 30 per cent stake in Voltas. It is unclear whether the sale would include Voltas’ consumer durables joint venture with Turkish firm Arcelik, Voltas Beko.
The Tata Group has not yet commented on the matter, but shares of Voltas declined 1.70 per cent on Tuesday following the report.
Voltas is a leading manufacturer of air conditioners, water coolers, washing machines, refrigerators, and microwaves in India. It is also a major player in the engineering solutions and project specialist space.
The Tata Group’s decision to consider the sale of Voltas is a sign of the increasing competition in the Indian home appliances market. The market is dominated by a few large players, such as LG, Samsung, and Whirlpool, and it is difficult for new entrants to gain a foothold.
The Tata Group may be looking to divest its home appliances business to focus on its core areas of expertise, such as automotive, IT, and financial services.
