Financial Daily from THE HINDU group of publications
Wednesday, Jun 05, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jun 05, 2002 |
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Corporate
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Alliances & Joint Ventures BPL signs pact with Fedders-Voltas for ACs Boby Kurian
BANGALORE, June 4 BPL has entered into a joint venture with US-based Fedders Corporation and Voltas Ltd to manufacture air-conditioners. Speaking to Business Line, Mr L.H. Bhatia, Chief Operating Officer (COO), Home Appliances Business, BPL, said that the company has set a modest target of 12,000 units for the entire year. "We don't want to be in the volume business initially,'' he said. It is expected to put in place a trade channel soon and price the products competitively. BPL offers one tonne and 1.5 tonne air-conditioners (window and split) sourced from Fedders-Voltas plant located at Dadra near Goa. Meanwhile, BPL has restructured its home appliances portfolio by discontinuing the production of microwaves, vacuum cleaners and gas tables. Its main focus will be on refrigerators and washing machines. Mr Bhatia said the company sold 18,500 refrigerators last month. By October, when the festive season begins, the company hopes to sell at least 20,000 refrigerators and 8,000 washing machines.Mr Bhatia said BPL was on course to merge two of its home appliances companies - BS Refrigerators Ltd and BS Appliances Ltd. The process is expected to begin by October after the issue of debt recasting of these companies is settled. The combined debt of these two entities, as on September 2001, is estimated at around Rs 249 crore. The reduction in debt burden, lower interest cost and improved working capital flow are crucial for the survival of BPL's home appliances business. It has submitted a plan to ICICI for recasting of debts. According to the plan, Sanyo of Japan is expected to pick up a significant stake in the restructured home appliances business.
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