Predatory Bpl To Set Up Europe Plant

BPL Ltd is on an expansion and acquisition spree with plans to set up a new plant in eastern Europe and acquire telecom-related software companies.

BPL chairman and managing director Ajit G Nambiar told newspersons yesterday that the company intends to increase its geographical reach by developing and delivering products and software services in the US and Europe.

He said the company expects to have a revenue of around Rs 2,000 crore during 1999-2000 and hopes to sell around 1.2 million colour television sets during the current financial year. By the year 2000-2001, sales are likely exceed 2 million.

"We are also looking at acquisitions in the software sector," Nambiar said. He added that this would most probably be a telecom-related software company.

 

BPL's international operations director L H Bhatia said the company was keen to set up a facility abroad.

This would most probably be in eastern Europe," he said. BPL Ltd has also tied up with the Dixons Group based in UK for exporting colour television sets and alkaline batteries. During 1999, Dixons purchased over 60,000 CTV sets valued at around pounds 4.6 million and 3.7 million alkaline batteries valued at pounds 0.6 million from BPL Ltd.

BPL hopes to export over 20 million batteries to the Dixons during 2000-2001. BPL TV sets are sold under the Matsui brandname through the Dixon stores.

BPL and Dixon are also working together to identify new technologies where BPL's manufacturing can be increasingly used to cater to Dixons' customers in the UK. The Dixons has around 1,000 stores in the UK and has a market share of around 20 per cent. It has a turnover of pound 3.5 billion. Dixons recently acquired ELKJOP chain of hyper stories in Scandinavia. Among its range of brand names are Currys, PC World and The Link. To facilitate the ongoing relationship with the Dixons, BPL has decided to relocate M Sasi as Managing Director of BPL Euro Trade Ltd with effect from April 1, 2000.