The Rs 2,014-crore plus electronics major BPL Ltd. has decided to form a holding company for its home appliances business, which will be called BS Home Appliances. The company has offered its technical collaborator Sanyo of Japan a stake up to 40 per cent in the holding company.
The decision has been prompted by the delay in securing the court approval for the proposed merger between the home appliances arms, BPL Sanyo Utilities & Appliances Ltd. and BPL Refrigeration Ltd.
The home appliances division comprises refrigerators, washing machines, microwave ovens, vacuum cleaners, cooking ranges, gas tables and dish washers. Apart from Sanyo, BPL has tie-ups with technology leaders like Toshiba, Media One, Harris Communication and Octel.
The year 2000-01 has not been a good year for the consumer durables market, which has impacted BPL’s performance for the third quarter of the current fiscal.
Though the company maintained its leadership position in many of its product ranges including the frost free refrigeration segment, its net profit declined by 28 per cent to Rs 20.05 crore in the third quarter from Rs 28.01 crore in the corresponding period the previous year.
The company has brought down its total expenditure to Rs 429.44 crore in the third quarter of the current fiscal from Rs 525 crore in the corresponding period last year.
For the nine-month period ended December 31, 2000, BPL has posted a 20 per cent decline in net profit to Rs 61.27 crore on a turnover that has fallen 16 per cent to Rs 1,356 crore over the previous corresponding period.