BPL returns favour, to help Flipkart re-enter Kerala

Last year, Flipkart revived BPL, which had lost out to LG and Samsung, helping it make televisions and selling them on its platform

Electronic brand BPL is helping e-commerce giant Flipkart to re enter Kerala, a market that most e-commerce sites had stopped delivery due to lack of clarity in taxes in the southern state.

Flipkart had won a case in the Kerala high court against the local commercial taxes department over a Rs 47.15 crore penalty citing that they were merchants. The court had held that e-commerce firms were facilitators between buyers and sellers. The state had also prohibited e-commerce firms for using public transport to deliver large e-commerce products. For the Onam season, the ban has been lifted.

Now, Flipkart is betting on BPL, which started in Palghat in Kerala, to re-enter the small but crucial market to sell consumer durables including television sets and washing machines.

BPL, once India's largest consumer durable company, lost its sheen after the country opened up its market for foreign companies and lost out to the aggressive Korean conglomerates LG and Samsung. Last year, Flipkart revived the brand; helped the company to make televisions and began selling them on its e-commerce platform. Since then, BPL had sales of over Rs 100 crore and hope to look at sales of Rs 800 crore by next year by launching newer television sets, washing machines and other products.

"Our journey began with our first ever factory in Palakkad in 1963. The factory is still operational. We owe a lot to the state of Kerala that had empowered us to begin this success story. Its an emotional moment for all of us at BPL to be a part of this grand homecoming for one of Kerala's favorite brands. We are excited and look forward to introduce our finest quality television to the people of Kerala," said Ajit Nambiar, Chairman and Managing Director of BPL India.

According to RedSeer, a Bengaluru-based researcher which tracks performance of Indian e-commerce firms had stated in its first quarter report on Etailers that electronics dominate the state with large share of sales coming from exclusives. While the percentage of commission is just 5 to 9 per cent on Electronics they account for 25 per cent of e-tailing industries revenue, it said.

BPL offers 24 inch, 32 inch and 40 inch LED televisions on Flipkart and will soon introduce larger models in the coming months. Other than TV the e commerce firm has also recently introduced its range of automatic and semi automatic washing machines.

BPL is looking at an online only strategy as of now. "The government's proactive measures to digitally empower the citizens and its high number of internet users have triggered the decision for the brand to extend it online only strategy to Kerala as well. This has helped cut down offline distribution costs and extend better pricing to our customers," added Nambiar.