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Sanyo, BPL invest $20M in joint venture
By agencies
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Monday, 06 February 2006, 20:30 IST
KOLKATA: Japanese electronic major Sanyo Electric Co and India's BPL have pumped in $10 million each in their $80 million 50:50 joint venture (JV) Sanyo BPL Pvt Ltd, to grab a major share in the Indian electronic market.
According to the company sources, The JV is valued at $80 million of which both the partners infused $10 million each and rest were asset transfer in the JV.The JV took off in December 2005, after two years of hard effort.
Now, Sanyo BPL JV has entered the domestic electronic market in a big way targeting to cross $454.54 million turnover over the next three years. Sanyo BPLs Regional Manager (East), Kallol Basu said, We have opened our first brand store 'Gallery' in Kolkata. Soon such brand stores will be opened in cities like Delhi, Hyderabad and Chennai.
The strengthening of the distribution network and presence in top six to seven metros in the next three years will be focus of the company. According to company strategy, BPL will focus on affordable consumer electronics, while Sanyo will bring in high-end products. There will be no co-branding.
The company was looking at a market share of 12 percent and eight percent respectively in the frost free and direct cool refrigerator segment and 15 percent in the microwave oven one. Sanyo BPL was targeting a 16 percent market share in the CTV category and 18 percent in the fully automatic washing machine category by 2008-09 and hoping to break even from the second year onwards.
The company expects India to become the export hub for CTVs to other Sanyo markets. However, for the next few months the company will focus in the domestic market before exploring the overseas market.