Financial Daily from THE HINDU group of publications
Wednesday, Jul 28, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jul 28, 2004 |
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Corporate
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Alliances & Joint Ventures Rs 500-cr investment planned for BPL-Sanyo joint venture Our Bureau
Mr Eiji Kotobuki, Chief Operating Officer (Consumer Group), Sanyo Electric Company, with Mr Ajit G. Nambiar, Chairman and Managing Director, BPL Ltd, after signing the agreement in Osaka on Tuesday.
Bangalore , July 27 BPL Ltd today announced creation of an equal joint venture with Japan's $22-billion Sanyo Electric Company with investments of nearly Rs 500 crore. BPL will transfer its existing colour television business undertaking, including the brand, manufacturing, sales, service, marketing and distribution, into this 50:50 venture "with the intention to create one of India's leading and most technologically advanced consumer electronics company". The new company will be jointly managed with BPL's Chairman & Managing Director, Mr Ajit G. Nambiar, heading it as the Chief Executive. Sanyo executives will hold crucial portfolios, which will be announced shortly. The Rs 500-crore investment include the value of the CTV business to be transferred to the joint venture by BPL, valued at Rs 370 crore. The CTV plant in Slovenia, acquired by BPL about three years ago, will not form part of the joint venture. Mr Ajit Nambiar said, "The rapid growth in the domestic CTV market offered opportunity to BPL and Sanyo to enhance product offering, increase the market share and achieve the number one status in the Indian market," Mr Ajit Nambiar said. Mr T.P.G. Nambiar, the founder-promoter of BPL, said, "We have cemented our close long-term relationship with Sanyo through this agreement, and believe that Sanyo and BPL, working together, will create an impressive platform of global, technologically advanced products for the Indian consumer." Sanyo, which has a technology relationship with BPL since 1982, believes that its entry into India in alliance with BPL is a major step in its strategy to enter new international markets. The new joint venture will start with colour televisions and soon explore entry into other consumer electronics product areas. Sanyo's businesses cover a broad range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries and other products. The Sanyo comprises 84 manufacturing companies, 37 sales companies and 39 other companies worldwide.
More Stories on : Alliances & Joint Ventures | Consumer Electronics
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