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BPL in talks with Pioneer

Boby Kurian

BANGALORE, April 21

BPL Ltd, consumer electronics major and flagship of the Rs 4,000-crore BPL group, is in talks with Japan's Pioneer Corporation for a joint venture in the domestic audio entertainment segment.

Highly-placed BPL sources told Business Line that the company had been engaged in ``protracted talks'' with Pioneer. These talks, sources added, had not yet taken any concrete shape as Pioneer remained undecided on the timing of its Indian foray. Mr Ajit Nambiar, Chairman & Managing Director, BPL Ltd, was unavailable for comments.

But it is reliably learnt that Pioneer has committed to keep BPL's company as and when it decides to enter the domestic market. Last year, both companies came close to formalising joint venture details before Pioneer backed out expressing reservations ab out the Indian market.

The main reason cited for Pioneer's indecision is the fear about thriving local grey market for its products, especially in the car audio segment. The Japanese entertainment electronics major is also chary about a recession hit Indian consumer market.

The initial talks between two companies centered around the domestic car audio segment, but later expanded its ambit to include the entire audio entertainment market. The details regarding profile and equity participation of both companies in the joint v enture is not yet clear.

It must be mentioned that BPL recently allowed its technology partner Sanyo to pick up 14 per cent stake, with the option of increasing it to 49 per cent at a future date, in BPL Sanyo Utilities and Home Appliances Ltd.

Pioneer Corporation, which has its origin in late 1930s, is a diversified consumer electronics entertainment giant with presence in home audio and video products, car electronics products and industrial and commercial use audio-video products. Pioneer op erates across the Americas, Europe, Asia and Oceania regions through 159 subsidiaries and affiliates.