In India, consumer durables manufacturer Electrolux Kelvinator Ltd (EKL) will merge with Videocon Industries by next year, the EKL Managing Director, Anirudh Dhoot said.
"We are planning to merge Electrolux with Videocon Industries shortly, maybe by next year," adding that a decision on the deal would be taken at the company's board meeting.
He further said that since Videocon's acquisition of EKL's 91 percent stake in July sales had been good and the company would break even by next March.
It is eyeing an overall sales growth of 40 percent during the festive season and targeting to achieve 300 percent growth in microwaves and 150 percent growth in the air-conditioner category. The company will spend around 12 percent of its turnover on advertisements during the festive season.
EKL is also considering the integration of its plants in Maharashtra. "We are working on a possible merger or relocation of our Butibori plant which is a small plant and not very far from our Warora plant. The process of integrating the plant is on," Sanjeev Wadhwa, general manager of Marketing for EKL said.
EKL is also planning to relaunch its Kelvinator brand with a focus on rural areas. "A decision is yet to be taken, but we are thinking of launching Kelvinator brand. The refrigerators produced under the brand would be targeted at the low-end market. It has not been decided when the Allwyn brand will be launched," Wadhwa said.
Videocon had earlier this year struck an arrangement with AB Electrolux under which it acquired EKL and got the rights to market EKL's brands Kelvinator, Allwyn and Electrolux in India.
Videocon took over EKL's three manufacturing plants. It also gets an opportunity to tap the global market, as it would supply refrigerators and washing machines to AB Electrolux over the next 5 years. (Sify Finance)
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