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.