BPL, Sanyo to set up TV joint venture

Wednesday, 28 July 2004, 07:00 Hrs
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BANGALORE: India's consumer electronics major BPL Ltd will set up a joint venture with Japan's Sanyo Electric Ltd to take over its colour television business.

The Bangalore-based firm Tuesday notified the Bombay Stock Exchange that it has decided to transfer its colour television business to the proposed 5 billion ($108.19 million) joint venture with the Japanese group.

A meeting of the company's board also decided to invest $10 million in the share capital of the joint venture with 50:50 equity stake.

"The board's resolutions are subject to the approval of shareholders and statutory agencies. The company will soon enter into agreements with Sanyo to form the joint venture," the notification said.

Assets valued at 3.7 billion ($80 million) to be transferred to the new company include the BPL brand for colour TV business, manufacturing, sales, service, marketing and distribution networks.

"Our game plan is to create one of India's leading and most technologically advanced consumer electronics company," a company release said.

According to BPL chairman Ajit Nambiar, the rapid growth in India's colour TV market offers great opportunities for BPL with its brand and facilities in Bangalore and Noida near Delhi.

As one of the world's major consumer electronics companies, Sanyo's businesses are spread over a range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries and other products.

Worldwide, the $22 billion Sanyo group has 84 manufacturing units, 37 sales offices and 39 other operations.

Source: IANS
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