Sanyo to invest Rs 500 cr in CTV venture with BPL

BPL Ltd has announced the setting up of a new 50:50 joint venture for colour television business with Sanyo Electric Company in a deal worth close to Rs 900 crore.

Sanyo will invest a total Rs 500 crore in the venture, of which Rs 370 crore will be for its 50 per cent stake. The remaining Rs 130 crore will be used as working capital.

In turn, BPL will transfer its assets "" including the colour television business, worth Rs 370 crore. The CTV business includes the BPL brand, manufacturing, sales, service, marketing and distribution infrastructure. In addition, BPL will invest in the share capital of the proposed joint venture, an amount not exceeding Rs 45 crore.

The new joint venture company will start with colour televisions and soon explore entry into other consumer electronics product areas in India. This partnership with Sanyo will signify completion of a key step in the restructuring of BPL Ltd, which commenced last year.

BPL patriarch T P G Nambiar said: "We have cemented our close long-term relationship with Sanyo through this agreement, and believe that Sanyo and BPL, working together, will create an impressive platform of global, technologically advanced products for the Indian consumer."

Ajit Nambiar, chairman and managing director of BPL, said "The rapid growth in the CTV market in India offers a great opportunity to BPL with its brand, sales, distribution, marketing, service and manufacturing infrastructure and Sanyo's state of art technologies and R&D capabilities to enhance the product offering, increase the market share and achieve number one status in the Indian market."