Voltas new management is planning to spin off the companys white goods and chemicals businesses into separate subsidiaries.
The move is seen as a precursor to a sale of the two divisions. The white goods divisions of Voltas and Allwyn were merged earlier last year. We are working on the plans. The two businesses are becoming autonomous divisions, said Voltas sources. This is part of the companys plans to separate the two businesses from the main company and thereby minimise losses.
Voltas suffered a Rs 18 crore loss in 1996-97, its first in many years, and the trend continued in first half of 1997-98. Sources said, the units will have their own marketing, finance and HRD setups. The company is also scouting for possible buyers for some of its subsidiaries such as Premium Granite and Voltas Switchgears. Though the switchgear business has done well in recent times and has also shown a profit this year, the company is not averse to sell it for a good bargain, industry sources said.
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Voltas recently sold off its other subsidiary, WNC, involved in the manufacture of thermostats. It also signed an MoU with Swiss pump manufacturer Sulzer for exporting its pumps to the European Union and Asia Pacific countries, last week. The company manufactures the pumps in India under a licence from Sulzer. Sulzer has also placed orders with Voltas to supply vertical turbine pumps for six of its projects in Switzerland.
With the spinning off of the chemicals and whitegoods businesses, Voltas will be left with its core business of air conditioning, besides marketing operations which deals with capital equipment, textiles machinery, mining and construction equipment, machine tools, and manufacturing and machine handling divisions involved in the manufacture of industrial pumps.
These businesses will be retained and will form a part of the companys core business following its restructuring.
The company will also continue to operate its other subsidiary Voltas International.