Sanyo To Invest Rs 40 Crore To Hike Stake In Bpl Jv

The $21-billion Japanese transnational Sanyo has committed to pump Rs 40 crore into BPL Sanyo Utilities, the merged entity of BPL Refrigerators and BPL Sanyo Utilities and Appliances. The equity infusion will raise Sanyo's stake to 25 per cent in the company.

In addition, Sanyo is also in talks with the TPG Nambiar-controlled BPL group for a substantial increase in its stake to around 40 per cent.

"The board is interested in allowing Sanyo to increase its stake to 40 per cent but no formal decision has been taken yet," L H Bhatia, managing director of BPL Sanyo Utilities said.

Bhatia said: "Sanyo will put in the additional equity after the high court's approval on the merger."

Currently, Sanyo holds 11 per cent in the home appliances company. Subsequently, BPL's stake will come down to 51 per cent from 60 per cent in the present dispensation.

BPL's home appliances business comprises refrigerators, washing machines, microwaves, cooking range, gas tables, dish-washers and vaccum cleaners. The company is aggressively looking at introducing air-conditioners in their product portfolio by next year.

Senior company officials said, "We want to enter every segment of the market. So the thrust of our research and development will cater to all the needs of the Indian customer."

BPL Sanyo Utilities has clocked sales of Rs 18.20 crore for the first quarter ended June 2000 against Rs 24.04 crore in the corresponding quarter last year. It incurred a net loss of Rs 67 lakh against a profit of Rs 41 lakh in the corresponding quarter previous year.

BPL Refrigeration posted sales of Rs 40.46 crore in the first quarter ending June, 2000, against Rs 41.16 crore in the corresponding quarter last year. It incurred a net loss of Rs 3.13 crore against Rs 3.97 crore.