Matsushita Eyes 100% Of Panasonic India

Japanese consumer electronics major Matsushita Electric is seeking to hike its stake in Indian subsidiary National Panasonic India from 80 per cent to 100 per cent by buying out its Indian collaborators, following differences over running the company.

Of the 20 per cent minority shareholding, 10 per cent is held by the Khaitan-Jiwarajka family through their own investment companies. The family is also the promoter of television company Salora India, a joint venture partner of Matsushita in a separate company, Matsushita Television & Audio. The balance 10 per cent is held by three other joint ventures of Matsushita in India Indo-Matsushita Appliances, ma-nufacturers of National rice cookers, carbon rods maker Indo-Matsushita Carbon and batteries maker Indo-National. National Panasonic markets and distributes the products of Matsushitas manufacturing subsidiaries.

 

Relations between Matsushita and Khaitan have been strained of late, with the Khaitans complaining that they had no say in the running of the loss-making company, which has failed to pay any dividends in the past five years.

Salora managing director R P Khaitan acknowledged: We have asked Matsushita to buy us out, but we have not negotiated any price for our shares. As it is a loss-making company, we will be happy to get even book value.

There is no point for us to continue in NPIL, as we are not even on the board and have no say in the management, he added.

NPIL applied to the Foreign Investment Promotion Board last month to hike its foreign equity from 80 to 100 per cent. The case is expected to come up for hearing before the FIPB on February 26.