The company's management team will be appointed by Electrolux, according to a press release. However, the entire work force of Voltas' plants will be absorbed by the new company.

The first phase of the joint venture, which came into effect from October 1, involves the transfer of two Voltas factories--a refrigerator and compressor factory in Warora and a washing-machine plant in Butibori near Nagpur--to Electrolux.

In the second phase, two additional Voltas factories, a refrigerator plant in Nandalur and a compressor unit in Hyderabad, will be transferred to the new company, along with the Allwyn brand. This is expected to take place on April 1, 1999.

The Electrolux group has three joint ventures in India, Maharaja International, which manufactures andsells the Kelvinator brand of refrigerators, Intron, which manufactures and sells Electrolux brand front-loading washing machines and Eureka Forbes, which manufactures and sells water purifiers and vacuum cleaners.

AB Electrolux holds a 55 per cent stake in Maharaja International, a 74 per cent in Intron and a 40 per cent equity in Eureka Forbes.