BPL Plans To Form 50:50 JV With Sanyo For CTV Biz

Bangalore, July 27 | Updated: Jul 28 2004, 05:41am hrs
BPL Ltd, the beleaguered Bangalore-based consumer durables company, on Tuesday announced that it was setting up a 50:50 joint venture with long time technology partner, Sanyo Electric Company of Japan to address the colour television market in India. The decision was taken at a board meeting held on Tuesday.

In a notification to the stock exchange, the company said that it would transfer the colour television business to the proposed joint venture for a consideration of $80 million. It will also invest in the share capital of the new company an amount not exceeding $10 million.

The existing colour television business will include the BPL brand for CTVs; its manufacturing facilities, and sales, service and marketing. All this has been valued at Rs 370 crore, said a press release.

The JV is expected to leverage BPLs distribution network and manufacturing and Sanyos technology and R&D capabilities.

Sanyo has been BPLs technology partner since 1982 and has provided technology for CTVs, refrigerators, compressors, washing machines, components, and alkaline batteries.

The new venture will start with CTvs and explore entry into other areas, said the release.

BPL reported a loss of Rs 87.4 crore on sales of Rs 176.2 crore for the year ended March 2004.