Electrolux Kelvinator breaks even in January

Merger with Videocon Industries likely within 3-4 months, according to company sources.

Electrolux Kelvinator Ltd (EKL) is back in the black, having broken even in January this year with revenue for the month exceeding Rs 35 crore and net profit at Rs 4.2 crore, according to Aniruddh Dhoot, managing director of the company.

The company has set itself a revenue target of Rs 700 crore, with a net profit of Rs 85 crore for the calendar year 2006.

The company, acquired by the Videocon group last year, posted sales of Rs 400 crore last year with net loss for the July- December period at Rs 15 crore, said Dhoot.

Company sources said that its merger with Videocon Industries was likely within 3-4 months as EKL had turned profitable.

However, Dhoot refused to comment on the issue. Dhoot attributed breaking even to factors such as broadening of the company's focus from only refrigerators to other product categories such as air-conditioners and washing machines, resizing workforce, production restructuring and retail expansion.

From 75 per cent of business coming from refrigerator sales a year ago, EKL now earns 55-58 per cent from this category, with air-conditioners contributing 22-25 per cent and the rest from washing machines and microwave ovens.