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This time `B' is brand for BPL

Boby Kurian

V.K. Varadarajan

BANGALORE, Oct 10

THE Rs 3,760-crore BPL group, has indicated plans to leverage its brand to raise funds in future.

To this end, the consumer electronics major is expected to undertake valuation of its mother brand, BPL, through reputed international brand consultants.

In an interview to Business Line, Mr Ajit Nambiar, Chairman and Managing Director, BPL Ltd, said, ``We are strongly examining going in for a formal valuation in the near future.''

Mr Nambiar has had informal talks with a reputed brand consultancy firm abroad in this regard. ``It is important that we know how much our mother brand is worth, especially since BPL Mobile appears to have brought significant value add.

``I know that hardly any Indian company has adopted this approach and not many institutions here are very familiar with this concept. But we may look whether the mother brand can be leveraged to raise funds,'' Mr Nambiar said.

Interestingly, he mentioned that ICICI in the recent past has urged BPL to initiate brand valuation.

``Brand is the most important among our assets. The valuation exercise will help us to know which of our businesses drive value to the brand. It can be used to realign internal management to derive business advantage,'' he said.

The plans for leveraging brands to bring funds comes in the wake of a SEBI ban on the company from accessing the domestic primary markets for next three years.

Currently, BPL, with major business interests in consumer durables and new economy initiatives such as wireless, Internet and broadband services, is mulling various options to meet its capital expenditure demands.

BPL brand, rated by Far Eastern Economic Review's Asia Survey 2000 as ``the most innovative in responding to consumer needs,'' enjoys leadership in CTVs, frost-free refrigerators, alkaline battery exports, cardiology products and cellular phone services.