Voltas To Sell 74% In Switchgear Arm
Tata group company Voltas is divesting its 74 per cent stake in Voltas Switchgear, a wholly owned subsidiary, after a four-year hunt for a strategic partner.
The stake is being sold to the Sheth Group, which has a presence in engineering and construction. However the price at which the stake is being sold could not be ascertained but company officials said that the group had offered a fair price for the business.
The remaining stake will be held by Voltas, but within less than a year this too would be sold to the Sheth group, officials said.
Also Read
Voltas Switchgear recorded a turnover of Rs 16.7 crore for the nine months ended March 31, 2000, and reported losses of Rs 3.8 crore for the period.
The switchgear arm was on top of the divestment agenda after the company's turnaround plan was chalked out in 1997.
However, Voltas was unable to find any buyer in this period, and was working on a turnaround plan for the company.
The company had earlier said that various options were under consideration to find a solution to the deteriorating performance of Voltas Switchgear. Its fiscal year was stretched to 18 months, ending September 30, 2001.
Voltas is also seeking an alliance for the other ailing subsidiary Perfect Moulds, after the company's bid to forge a joint venture with Jaud SA of France fell through for diverse reasons. Voltas is currently in negotiations with another company for a possible joint venture.
Over the last three years, Voltas has gone through a major restructuring exercise, selling or hiving off several of its unprofitable businesses and subsidiaries. It sold its thermostat business, the chemicals unit to a group company and hived off part of the bleeding white goods business into a joint venture with Electrolux.