Voltas had hived off its loss-making refrigerators and washing machines business including manufacturing facilities and permission to use the flagship brand name to a 26:74 joint venture with Swedish white major AB Electrolux last year.

Speaking to reporters here after press conference to announce the contract with LG Electronics, Khurody stated: "We are willing to sell our 26 per cent stake in the joint venture to Electrolux right now."

Voltas had transferred its refrigerators and washing machines business to the joint venture as a part of the restructuring exercise to get out of loss-making businesses. The Tata group company had decided it would focus on engineering and engineering related activities.

Khurody further stated that Voltas intended to discontinue manufacture of airconditioning compressor that werebeing made in small numbers to meet demand for the government contracts. The manufacture of refrigerator compressors had been transferred to the Electrolux-Voltas joint venture.

On the progress on voluntary retirement scheme (VRS) to reduce its work force, Khurody said the company has so far finalised agreement with 850 people. The company proposes to further reduce the staff strength by 1,000 people once the funds are tied up later this year, he added. Another lot of 500 people would be eased out when the company completes the process of deploying information technology all through the organisation.

Voltas has farmed out all its information technology related activities to Tata Consultancy Services. TCS has subsequently set up a "Voltas cell" in the company. Khurody said the 45-odd Voltas IT staff are being shifted to TCS and will, till further notice, work under the guidance of software company. "This will enable us to combine the best of Voltas and TCS," Khurody felt.

Meanwhile, the company isimplementing Operation Star, a programme intended to bring the customers closer to the company. The campaign was introduced at Chennai office of the company in May this year. It is now being extended to Delhi and Mumbai.