In a major development, Tata Group is considering selling the home appliances business of Voltas, Bloomberg reported quoting sources. The Tata Group, which has a nearly 30% stake in the business, is facing challenges in expanding the Voltas business in a competitive market, sources told Bloomberg.
The Voltas Ltd. has a market capitalisation of Rs 26,936 crore as of November 7. Tata Group's management is currently in discussions about the potential sale. It has not reached a decision on whether to include its local joint venture with Arcelik AS in the deal, the sources added. Voltas makes air conditioners and water coolers among other products.
Voltas's shares fell nearly 2% to a session low of 813.80 on Tuesday. Last month, Voltas's second-quarter profit fell short of market expectations due to higher raw material costs.
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