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Monday, July 27, 1998

BPL set to enter direct-cool refrigerator business again 

Tina Edwin  
New Delhi, July 26: The Bangalore-based BPL is re-entering the direct-cool refrigerators segment next month. Direct cools, or conventional refrigerators, account for almost 80 per cent of the over three-million-unit domestic market.

The company is also studying the feasibility of a foray into the airconditioners market in an effort to become a complete appliances and electronics company. It has also decided to market high-end fully-automatic washing machines of Sanyo. Besides, the company plans to introduce refrigerators with chlorofluro carbon-free (CFC-free) compressors by next year.

BPL's last foray into the direct-cool refrigerator segment had come to a nought, forcing the company to almost abandon production of these machines. This time, the market leader in the frost free segment proposes to source direct-cool refrigerators under an original equipment manufacturing (OEM) contract from the third party manufacturers. BPL has already tied up with Voltas to source refrigerators from its Allwyn facilityat Hyderabad.

Company sources said that BPL may tie up with more companies for sourcing the refrigerators. The company has set a sales target of about 10,000 units this year. Direct-cool refrigerators account for almost 2.5 million units in the three-million refrigerators domestic market and has been recording steady growth. The segment has been attracting multinational companies such as South Korea's Daewoo Electronics, LG Electronics and Samsung Electronics which were keen to increase the penetration levels of their brands. The three companies are also sourcing direct-cool refrigerators from Godrej-GE, Voltas and Videocon.

Sources added that the company was planning a low-key launch of two models of the refrigerators all over the country. Meanwhile, it has introduced a new 200-litre frost-free machine in the market, thereby making these refrigerators available in five sizes. Sources added that the company has already developed CFC-free compressors. BPL is now in the process of testing these compressorsand obtaining necessary approvals for launching them.The compressors, once cleared by the authorities, would be manufactured at the company's facilities at Hyderabad. The company plans to make the CFC-free compressors for refrigerators, airconditioners and other cooling equipments.

On the proposed high-end washing machines of Sanyo, sources said BPL would market these imported machines through select counters in metropolitan cities. The machine would be priced at Rs 40,000 and the advertising campaign to promote the product will begin this week.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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