The Hindu Business Line : `Electrolux, Videocon merger by next year'

Mr Anirudh Dhoot (left), Managing Director, Electrolux Kelvinator Ltd, with Mr S. Wadhwa, General Manager (Marketing), at a press conference in the Capital on Tuesday. - Kamal Narang

New Delhi , Oct. 4

CONSUMER durables manufacturer Electrolux Kelvinator Ltd (EKL) will merge with Videocon Industries by next year, the EKL Managing Director, Mr Anirudh Dhoot, said today.

"We are planning to merge Electrolux with Videocon Industries shortly, maybe by next year," he told reporters here, adding that a decision on the deal would be taken at the company's board meeting scheduled after Diwali.

He further said that since Videocon's acquisition of EKL's 91 per cent stake in July sales had been good and the company would break even by next March.

Festive season target: EKL is targeting a turnover of Rs 400 crore till December, Mr Dhoot said while announcing the company's promotions for the festive season. It is eyeing an overall sales growth of 40 per cent during the festive season and targeting to achieve 300 per cent growth in microwaves and 150 per cent growth in the air conditioner category.

The company would spend around 12 per cent of its turnover on advertisements during the festive season.

Integration: EKL is also considering the integration of its plants in Maharashtra.

"We are working on a possible merger or relocation of our Butibori plant which is a small plant and not very far from our Warora plant. The process of integrating the plant is on," Mr Sanjeev Wadhwa, General Manager, Marketing, EKL said.

Relaunching brands: EKL is also planning to relaunch its Kelvinator brand with a focus on rural areas. "A decision is yet to be taken, but we are thinking of launching Kelvinator brand. The refrigerators produced under the brand would be targeted at the low-end market. It has not been decided when the Allwyn brand will be launched," Mr Wadhwa said.

Videocon had earlier this year struck an arrangement with AB Electrolux under which it acquired EKL and got the rights to market EKL's brands Kelvinator, Allwyn and Electrolux in India.

Videocon took over EKL's three manufacturing plants. It also gets an opportunity to tap the global market, as it would supply refrigerators and washing machines to AB Electrolux over the next five years.

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