Tata is considering to merge Voltas’ project business with Tata Projects, the group’s infrastructure company to improve operating efficiencies along verticals and cut costs, as per a report in The Economic Times.
Meetings between Voltas Chairman Noel Tata and Group Chairman N Chandrasekaran could be a strong indication for the move, which would be a part of Tata Sons’ plan to restructure the group under 10 verticals, the report added.
Moneycontrol could not independently verify the report.
Tata intends for Voltas to scale up capabilities in the durables sector, especially air conditioners and refrigeration, where it faces stiff competition. As such the company has been re-categorised under the consumer vertical.
Voltas did not confirm the development while Tata Sons did not respond to ET’s queries.
Voltas’ projects business takes up turnkeys projects in the domestic and international MEP (mechanical, engineering and plumbing) market, with a significant presence in the Middle East. In fact, while Voltas Projects earned more than 50 percent of its revenue from the international side, Tata Projects is focused on the domestic EPC market, the paper added.
The paper quoted a spokesperson who stated that the Voltas-Beko JV was confident of achieving the Rs 10,000-crore turnover and 10 percent market share by 2025. It added that production at the new Gujarat facility would begin by 2019-end.
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