Bpl Kitchen, Home Units Merged

BPL Ltd's business group, which manufactures kitchen appliances and gas tables, has been merged with the BPL Home Appliances Division. Also, Japanese home appliances major Sanyo is likely to increase its present 14 per cent stake in BPL-Sanyo Utilities and Appliances, a senior company spokesperson said.

BPL-Sanyo Utilities and Appliances, to be formally launched in June, will hit the domestic market with a slew of products like Net-ready refrigerators, Internet-enabled kitchen devices and appliances that can be controlled via wireless Web pads. The products can also access a host of Internet-based home services. The company is also considering entering the air-conditioner market soon.

 

"With Sanyo coming in as an equity partner, it opens up the entire Sanyo range of products and technology to us," said M K Tribhuvan, business head, BPL Home Appliances Division.

"Strategically, the merger has been done with a view to bring about a greater size in the appliance company because it means more assets, more borrowing power in the capital market and better economies of scale in purchases," Tribhuvan said.

After capturing the top slot in the `frost free' segment, BPL is looking at the conventional refrigerator market led by Godrej where it has nibbled a four per cent market share within one year of launching its 220-litre product. Godrej has a 20 per cent share in this market.

"We will be able to get at least a 10 per cent market share in the conventional segment within two years," Tribhuvan said.

Refrigerators have been the main drivers of BPL's home appliance business which now includes washing machines, microwave ovens, gas tables, cooking ranges, and vacuum cleaners.

BPL's immediate agenda is to create major inroads into the conventional refrigerator segment and drive sales of its latest winner _ `Converti'. The `Converti' technology, a `world-first' developed in-house by BPL's research and development wing, gives the option of converting the freezer space into a refrigerator and back into a freezer whenever required. The new technology is being introduced in BPL's entire frost-free range.

For the conventional market, BPL is initially planning to come out with a variety of sizes to supplement its `220-litre only' offering, which happens to be the only product that offers a -18 degree celsius temperature in the freezer.

With the frost-free models ranging from 190 litre to 550 litre, BPL commands a 32 per cent market share in the country.