- Tata Group was rumoured to sell its Voltas brand.
- Voltas has officially responded to the situation denying any such reports.
- Voltas says that the company is committed to serving to the Indian market under the Tata Group umbrella.
Voltas is a renowned name in the home appliances market in India. The Tata Group subsidiary is a solid player in the country for air conditioners and refrigerators. Voltas products are known for their affordable pricing and wide range of SKUs.
Voltas is the biggest air-conditioner brand in India with a market share of over 20%. The company is not just popular in India but also has a presence in the Middle East, Southeast Asia, and Africa.
Tata Group Is Not Selling Voltas: Official Statement
Earlier today, Bloomberg reported that the Tata Group was considering selling its Voltas brand and taking an exit from the home appliances market. As per close sources requesting anonymity, the Tata Group was taking this steep move due to increased competition in the market.
However, Voltas has now officially released a statement saying that all the reports citing the Tata Group selling Voltas are false. Voltas says that the news is not factual, and is blatantly false. The company further added that Voltas is seeking clarification from Bloomberg for publishing such embarrassing news for its shareholders.
Voltas has been a highly successful brand under the Tata umbrella. The Voltas division is also listed on the National Stock Exchange and is valued at over Rs 27,000 crores. The company also reported a profit of Rs 136 crores in the last financial year.
As per Statista, Voltas is the biggest air-conditioner brand in India, with a market share of 21%. It also holds roughly 5% market share in the refrigerators and washing machines segments respectively.
These numbers clearly suggest that the Voltas brand has been doing exceptionally well for the Tata Group. Hence, it does not make any sense for Tata to sell Voltas.
Voltas is also a huge player in local manufacturing, as the company has over five factories in India situated across Uttarakhand, Gujarat, and Tamil Nadu. Voltas also employs around 9000 people in India directly, with additional indirect jobs.
Voltas Has a 70 Year History in India
Voltas was founded in 1954 as a joint venture between Tata Sons and Sweden-based Volkart Brothers. The company starts its operations in the air cooling, electro-mechanical, and engineering segments while focusing on local manufacturing in India.
As per available records, Voltas is also the first brand in India to sell air-conditioners. The company was also the first in its segment to introduce split-ACs in the country. Ever since Voltas has emerged as one of the largest brands in India.
The success of Voltas can be seen not just in India, but from its international projects as well. The world’s tallest building Burj Khalifa uses air-conditioning from Voltas. The company also maintains the cooling solutions for the Ferrari World Theme Park in Abu Dhabi, and the Dubai Mall in the UAE.
The official statement from Voltas should bring the rumour mill grind to a halt, as the Tata Group has no plans to sell one of its most successful companies.