In response to news reports regarding the potential sale of the Voltas Home Appliance business by its parent Tata Group, Voltas issued a statement vehemently denying the claims.
The statement released by Voltas expressed strong discontent with the news, labelled it as “totally incorrect and blatantly false,” stressing that there was no “factual basis” to support the claims made.
“This is with reference to the news ‘Tata Considering Sale of Voltas Home Appliance Business’ which appeared on Bloomberg.com this afternoon, which was also picked up by few other publications/channels, without ascertaining the facts from the Company’s officials before publishing the same,” Voltas said in its statement, adding, “In this connection, we wish to categorically state that the aforesaid news is totally incorrect and blatantly false, with no factual basis whatsoever. The Management therefore denies any such development.”
Voltas reiterated its commitment to the home appliances business and vowed to strengthen its leading position in the sector. Commenting on the news reports causing embarrassment and raising concerns among shareholders and investors, the company said it is initiating steps to address the issue with Bloomberg, seeking clarification.
“Voltas re-affirms its commitment to the Home Appliances business, and the Company will further strengthen its market leading position in the categories that it represents,” Voltas said and added, “As the aforesaid news has caused embarrassment, apart from concerns including by the shareholders/investors, we are separately taking up the matter with Bloomberg to issue a necessary clarification.”
Founded in 1954, Voltas manufactures products including air conditioners and water coolers as well as commercial refrigeration units, according to its website. The Tata Group company 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.
“The Company is a market leader in Room Air Conditioners and its Joint Venture with Arcelik for Voltas. Beko products is one of the fastest growing brands in the Appliances business. The organization continues to outperform the market, and exceed revenue targets in all its product categories,” Voltas said.
Voltas reported a consolidated net profit of Rs 36 crore for the second quarter ended September 30, compared with a net loss of Rs 6 crore in the July-September period of the last fiscal. The company said its total income increased to Rs 2,364 crore for the second quarter against Rs 1,833 crore in the year-ago period.
Voltas Beko reported revenue of around 96.7 billion rupees ($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.