BPL Set For OEM Pact With Loewe

Bangalore, July 26: | Updated: Jul 27 2002, 05:30am hrs
Consumer electronics major BPL’s plan to boost its original equipment manufacturers (OEM) business seems to be on a roll. The company is now all set to transform its marketing and co-branding alliance with $400-million German top-end consumer electronics major — Loewe —- into an OEM alliance. This move will see BPL replacing Dutch major Philips as Loewe’s key OEM partner. Interestingly, Loewe was the company which made the world’s first TV in 1932 and still holds the worldwide patents for television. The long time OEM alliance between Philips and Loewe is expected to come to an end shortly.

Following the signing of the deal which is in the final stages of negotiation, BPL will service Loewe’s requirements in the VCR and 20-29 inch television segment, primarily to cater to the requirements in European market. While BPL’s VCR manufacturing plant in India will fall into action, the company’s Slovenia plant is expected to manufacture the television sets. Manufacturing is expected to commence in the next two months.

Speaking to FE, Loewe’s marketing manager Far East and Australia (consumer electronics export division) Volker Hahn said BPL was likely to manufacture between 10,000-15,000 VCRs and close to 50,000 television sets every year for Loewe.

“Loewe has a production capacity of 4,00,000 TV sets, but we want to focus only on the manufacturing of 29 inch TVs and upwards. So we are in close negotiations with BPL for outsourcing manufacturing of 20-29 inch TVs to BPL,” Mr Hahn said.

The VCR manufacturing arrangement would also cater to the European market where the demand for the traditional VCR is still growing unlike the downward trend in other markets, particularly Asia.