Financial Daily from THE HINDU group of publications
Thursday, Jan 26, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Alliances & Joint Ventures


Sanyo-BPL joint venture takes off — Eyes Rs 2,000-cr revenues in 3 years

Our Bureau

Bangalore , Jan. 25

SANYO-BPL on Tuesday said it expects to post revenues of around Rs 2,000 crore by 2009 and lead the market in consumer electronics and white goods in five years.

Unveiling the joint venture's plans, the Sanyo-BPL Pvt Ltd Chairman and Chief Executive Officer, Mr Ajit G. Nambiar, told newspersons that the company expects to become the leader in consumer durables and white goods in five years.

"We have been out of the market for over two years now. We are confident we will regain our market share," Mr Nambiar said. Sanyo-BPL is a 50:50 joint venture between Sanyo Corporation and BPL Ltd.

The Sanyo-BPL President and the Chief Operating Officer, Mr Keiji Oshima, said Sanyo expects 5 per cent of its global revenues to come from its operations in India. Currently, 50 per cent of its total revenues are from its overseas markets.

Mr Nambiar said both the brands will be marketed separately. While the BPL brand will be a volume driver, the Sanyo brand will be value driver. While most of the company retail outlets will have both the brands, some of them will have only Sanyo products. Mr Nambiar said most of the products will be manufactured at the BPL's plant near Bangalore and sourced through contract manufacturing especially in North India to gain sales tax benefit.

Mr Oshima said the company will source certain products like washing machines from Sanyo's plant in Vietnam. Sanyo will also look at using India as its sourcing base. "Sanyo is not against using India as its sourcing base," Mr Nambiar said. Sanyo has already started sourcing slim TVs from India. The joint venture expects to post revenues of around Rs 2,000 crore in three years and within two years, it expects to start making profits, Mr Nambiar said. The company has earmarked 5 per cent of its revenues for advertisement.

Sanyo-BPL head for marketing, Mr V.G. Rajagopalan, said Sanyo will launch products in the entertainment electronics segment, digital products and appliances categories, while BPL will focus on consumer electronics space.

In the CTV market, BPL expects to have a market share of 10 per cent in three years while Sanyo expects to have a share of 6 per cent. In volume terms, the joint venture expects to have a 16 per cent share and in value terms, 20 per cent share.

In the washing machine category, six models will be introduced initially.

More Stories on : Alliances & Joint Ventures

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Caught fire


Brand valuation of Tata cos moves up to Rs 24,396 cr
L&T-Samsung Heavy consortium bags ONGC order
Power Finance public offer slated for April-June — Merchant bankers to be appointed shortly
Synygy plans foray into new markets
JB Chem to raise funds by pref issue; net up 24 pc
Madras HC clears BPL Cellular's capital reduction programme
E-filing facilities: Cabinet nod for ordinance to amend Companies Act
Novartis loses patent claim on cancer drug — Patents Controller upholds Natco contention
Dunlop EGM approves takeover by Ruia group — `Company need not go for open offer'
Sundram Bleistahl flags off first consignment — Targets Rs 135-cr turnover in seven years
Rama Newsprint okays capacity expansion plan
Jindal to set up refinery, smelter plants in Vizag
NALCO plans expansion
`Toyota yet to finalise new plant location'
Tube Investments to invest Rs 30 cr in China plant
Sanyo-BPL joint venture takes off — Eyes Rs 2,000-cr revenues in 3 years
Hikal hopes to get European nod for 3 APIs by April
ONGC-Reliance PMT venture wants MRPL, instead of IOC, to lift oil
Reliance for inorganic growth to reach global leadership
Narottam Sekhsaria is new ACC chairman



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line