Sanyo may make fridges locally

Sanyo is looking at the option of contract manufacturing to go ahead with its plan of producing its range of direct cool refrigerators in India. At present the company imports appliances from its plants in Thailand and Vietnam.

Besides, Sanyo will bring in a range of consumer electronics products, home appliances and digital imaging products from its global stable.

According to company officials, they would look at volume sales through these appliances, while its colour TVs, to be marketed by Sanyo-BPL, will be positioned as a premium brand in India.

On the other hand BPL brand of CTVs, also to be marketed by Sanyo-BPL, will drive the volume business.

BPL, in August last year, had hived off its colour television business into a 50:50 joint venture with Sanyo, Sanyo-BPL, in a deal through which it got $80 million (approximately Rs 322 crore). BPL has transferred its two CTV manufacturing units, besides sales and distribution, to the venture.

Sanyo-BPL is also looking at raising debt-based on the relationship Sanyo has with financial institutions to fuel the growth of its joint venture.

According to sources it will be in the range of at least Rs 50 crore. No official confirmation was forthcoming from the company. "We will not be able to disclose our marketing or capital expenditure plans," a spokesperson for Sanyo-BPL said.

According to BPL-Sanyo, it has achieved a market share of 4 per cent in the CTV segment and hopes to touch 7 per cent during the upcoming festival season.

"Our target is to achieve a market share of 16 per cent over the next three years in the CTV segment," the spokesperson noted.

In an effort to beef up its appliance business, Sanyo is building up its presence at every critical price point with the appropriate product offering.

"Innovations such as ultrasonic washing and tilted tub technologies in washing machines and anti-fungal magnetic strips, and energy-saving compressors in refrigerators have been introduced for the first time in India," he added.

In a related development, the JV partner, BPL Group, is looking at various options on how best to make use of its former assets presently lying idle.

BPL Refrigeration, which came under BIFR, is now under the purview of ARCIL. The BPL group is seeking to buy back at the ARCIL auction the three acres of land in the prime Whitefield area which will be worth close to Rs 30 crore.