BPL signs a strategic partnership with SANYO

Company release, July 27, 2004

Bangalore

BPL Limited has today announced a landmark partnership with Sanyo Electric Company Limited of Japan (a Fortune 500 consumer electronics major) to create a joint venture for the colour television business in India. BPL will transfer its existing colour television business undertaking to this joint venture, constituting the BPL brand for CTV business, manufacturing, sales, service, marketing and distribution infrastructure. Both BPL and SANYO will be equal equity partners (50:50) in the joint venture with the intention to create one of India's leading and most technologically advanced consumer electronics company.

On the signing of this partnership, TPG Nambiar announced, "We have cemented our close long-term relationship with SANYO through this agreement, and believe that SANYO and BPL, working together, will create an impressive platform of global, technologically advanced products for the Indian consumer."

Investment into the Joint Venture Company is expected to be approximately Rs.500 Crores, including value of the CTV Business Undertaking to be transferred to the Joint Venture Company by BPL, valued at Rs. 370 Crores.

Ajit Nambiar, Chairman and Managing Director of BPL said "The rapid growth in the CTV market in India offers a great opportunity to BPL with its brand, sales, distribution, marketing, service and manufacturing infrastructure and SANYO's state of art technologies and R&D capabilities to enhance the product offering, increase the market share and achieve number one status in the Indian market"

The two joint venture partners have had a relationship since 1982 and SANYO has provided latest technologies to BPL for colour televisions, refrigerators, compressors, washing machines, components, alkaline batteries etc. The BPL brand, sales, distribution, service, marketing and manufacturing infrastructure and SANYO's economies of scale, global base, research and development, state-of-the-art technologies will propel the joint venture company to greater heights in the fast growing colour television market in India. The new joint venture between BPL and SANYO will start with colour televisions and soon explore entry into other consumer electronics product areas in India.

SANYO believes that its entry into India in a strategic alliance with BPL is a major step in SANYO's strategy to enter new international markets. SANYO with BPL desire to achieve number one status in the Indian consumer electronics market.

BPL has entered into the business of GSM & GPRS mobile phones as also WiFi phones, which also has good export potential.

This partnership with SANYO will signify completion of a key step in the restructuring of BPL Limited, which commenced last year.

About SANYO:

SANYO Electric Co., Ltd. is one of the worlds major consumer electronics companies. Leading the way in innovations that expand the scope of multimedia product technology, SANYO continues to advance business enterprise development supplying world-class electronic products to satisfy rapidly evolving markets. SANYOs businesses cover a broad range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries and other products. SANYOs net sales in the fiscal year ending on March 31, 2004, amounted to 2,508 billion yen (US$22.2 billion). The SANYO group is truly an international organization, comprising 84 manufacturing companies, 37 sales companies and 39 other companies worldwide.

About BPL Limited:

BPL Group was promoted by the founder, TPG Nambiar. The flagship company, BPL Limited was incorporated in 1963 as a private limited company under the name British Physical Laboratories India Private Limited for the manufacture of electronic test and measuring instruments in collaboration with BPL Instruments Ltd. UK. The company further expanded into such electronic products as medical systems and equipments, powerline carrier communication equipments, copiers, monitors etc. Making its foray into consumer electronics in 1982, BPL quickly established itself as one of India's most trusted consumer durable brands. Huge investment in manufacturing, marketing & distribution infrastructure, and brand building have made BPL a leader in the consumer durable industry. BPL today enjoys the highest brand awareness amongst consumer electronics brands and also has one of the highest preference shares in the CTV industry. BPL is currently engaged in the production and sales of televisions, home theatre systems, medical equipment, automotive parts, electronic components and alkaline batteries.

For more information on BPL Limited please visit - www.bplworld.com

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