Tata-owned Voltas Ltd has termed ‘incorrect’ a report by a news wire agency that said that the group was considering the sale of the company’s home appliances business.

In a clarification issued to the exchanges, the company said the news was “totally incorrect and blatantly false, with no factual basis whatsoever. The management, therefore, denies any such development.” It reaffirmed its commitment to the home appliances business and said that it would further strengthen its market position in the categories that it represented.

The Bloomberg report, citing unnamed people in the know of developments, said the Tata Group’s management was “deliberating the possibility of the sale”, as it was foreseeing difficulties in scaling up the business in a competitive market.

In its release, Voltas said the company was a market leader in room air conditioners and its joint venture with Arcelik for Voltas Beko products was one of the fastest-growing brands in the appliances business. “The organisation continues to outperform the market and exceed revenue targets in all its product categories.”

In 2017, Voltas and Istanbul-based Arcelik had entered into an equal joint venture to form Voltbek Home Appliances to market a range of appliances and consumer durables including refrigerators, washing machines, and microwaves in India.

In the September quarter, Voltas Beko sold over 4 million units, a rise of over 40 per cent from year ago. Its market share in refrigerators was 3.3 per cent and 5.4 per cent in washing machines. The company had said it expected break-even by FY25 though it would have to extend by 2-3 years, its timeline of achieving 10 per cent share due to disruption of Covid.

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