Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Electrolux Divests Indian Operation, Signs Distribution Agreement
Jul 7, 2005
 Printable format
 Email this Article
 Search

Sweden-based appliance maker Electrolux has signed an agreement for divestment of its Indian appliance operation, including all three production facilities to Videocon, one of India's largest appliance and consumer electronics maker.

The agreement grants Videocon the right to use the Electrolux brand in India for 5 years, as well as a license to use the Kelvinator brand in India and selected markets for an unlimited time.

Electrolux said the license agreement will include strict criteria regarding design, quality, product offering, and market communication for the Electrolux brand. The Swedish appliance maker will have a branch office in New Delhi for implementation of the license agreement as well as for purchasing.

"Although the operation in India showed substantially improved profitability in 2004 and 2005, it would take time to achieve an appropriate level of profitability with its present structure," said Johan Bygge, head of Electrolux Major Appliances Europe and Asia/Pacific. "We are now changing over to a distribution agreement with Videocon, the leading company in consumer electronics and appliances in the Indian market. The Electrolux brand will thus maintain its presence in the Indian market and will benefit from Videocon's extensive distribution network."

For Electrolux, the agreement will involve a maximum cost of SEK 600 million (approx. U.S. $75.9 million), which will be taken in the third quarter of 2005. The effect on Electrolux's cash flow is expected to be approximately SEK 350 million (approx. $44.2 million). As part of the agreement, Electrolux will become owner of approximately 5 percent of the shares in Videocon Industries Ltd.

Electrolux said the transfer of the operation to Videocon will be effective immediately.

Back to Daily News

 

Daily News

...........................................................

Oct 2, 2014: Consumer confidence down in September

Oct 2, 2014: Canadian HVAC/R wholesaler sales down 0.8% in August

Oct 1, 2014: Whirlpool on Manufacturing Day: on track to exceed $1 billion U.S. investment goal

Oct 1, 2014: Commercial appliance spending and other restaurant capital spending solid in August

Oct 1, 2014: Appliance maker Gorenje is first Slovenian company with a European Works Council

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows