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M Ramesh

Chennai, Aug 9

The Japanese consumer electronics major, Matsushita Electric Industrial Company, which has 40 per cent stake in the Chennai-based Nippo Batteries Company Ltd, is likely to divest a fourth of its holding in the company, possibly in the secondary market.

Today, the promoters’ stake in Nippo Batteries is close to 85 per cent — of which 44.4 per cent is held by the Indian promoters (industrialist Mr Obul Reddy). The promoters’ stake needs to be brought down to 75 per cent, as per the company’s listing agreement with the stock exchanges. Sources said that Matsushita intends to sell 10 per cent.

Asked for a confirmation of this, officials of Nippo Batteries said they would not like to comment on this. “This question is best answered by Matsushita,” they said.

Industry sources also said Matsushita divesting 10 per cent stake could be a precursor to the company exiting Nippo Batteries altogether. Asked if the Indian promoters would buyout the foreign collaborators, officials of Nippo Batteries said there were “no such plans at present.”

However, sources, noting that the Indian promoters cannot possibly comment on such a sensitive issue, point out that Matsushita, better known by its brand Panasonic, happens to be a partner in two Indian rival companies — Nippo Batteries and Panasonic Battery India Company Ltd, manufacturers of Novino batteries, in which the Japanese major has a 51 per cent stake.

The Rs 339-crore Nippo Batteries has a 30 per cent of the Rs 1,100-crore dry cell market in India, in which the leader is Eveready, with 45 per cent share. Panasonic (Novino) has 18 per cent of the market.

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