Videocon group chairman Venugopal N Dhoot told The Financial Express that Kitchen Appliances has retained the majority stake in the new company.

The newly-floated company is currently awaiting the requisite clearance to commence operations, company sources said. The joint venture is part of the group's strategy to emerge as a global player in the consumer durables business through alliances, joint ventures and acquisitions. Videocon has set itself a target to emerge as leading player in the consumer durables market by year 2007. By 2001, the group expects its four consumer durables companies -- Videocon International, Videocon Appliances, Videocon VCR and Kitchen Appliances -- to together contribute over Rs 5,000 crore in turnover.

While details of the joint venture agreement as well as the name of the new companyare still under wraps, Dhoot stated that the foreign partner would buy back as much as 50 per cent of the production from the joint venture company for exports to other markets.

The new company would out-source the production of vacuum cleaners and other sophisticated floor-cleaning products to Kitchen Appliances which has its manufacturing facilities at Aurangabad.

Sources said the foreign partner would make available technology for various kinds of floor-cleaning equipments, which are particularly suited for Indian conditions. Sources added that the joint venture company was planning to launch one-stop solutions for floor-cleaning, which would combine functions such as cleaning, polishing and steaming. Kitchen Appliances was floated by the Videocon group a few years back to manufacture and sell appliances.

The company launched its range of products such as mixer grinder, steam irons, sandwich toasters, juicers, toasters, blenders and shavers under the Kenstar brand late 1996.

Subsequently, thecompany entered into an alliance with Sansui Electric Company of the Semi-Tech group to manufacture and market the foreign brand's television and other electronic products. Kitchen Appliances, meanwhile, is expected to report turnover of Rs 350 crore for the year ended March 1999, and continue to grow at around 20 per cent per annum over the next two years, Dhoot said.