**OT** Here is someone else who has gone global-BPL
Dhanam:
These guys have already bought one or two companies in Eastern Europe if I am not mistaken.I won't be surprised if they list their IT division in the U.S. bplsys.com
bplglobal.com
BPL readies to go global, set up bases abroad
Business Times Bureau
BANGALORE: BPL is all set to globalise its operations and set up bases abroad. The group is also planning to set up a television manufacturing facility in Eastern Europe on account of the cheaper labour cost and growing markets in the region.
This will also circumvent the high transportation costs and 14 per cent duty applicable in the European Union for non-EC products, currently a cost disadvantage. While the operation will be wholly-owned by BPL, the group is not clear on whether they want to promote BPL as a brand in the region owing to high costs of brand building.
In keeping with this globalisation trend, the company has transferred senior personnel to its offices in UK and the US to monitor global operations on the spot. According to Chairman and Managing Director Ajit G. Nambiar, "This is part of the restructuring of our operations, which has been initiated recently."
A new company, BPL Euro Trade Ltd, has been set up in London, with one of the BPL's directors M. Sasi as managing director with effect from April 1, 2000. The new company will work as a trading house, sourcing components and raw materials for BPL's other operations.
Software services in San Jose, California, US, will be put in charge of Steve Lin. The BPL Soft Energy Business Group will be represented in six countries through BPL Euro Trade Ltd, UK, Kleer Industries Inc., USA, Snowman Electronics Ltd Hong Kong, Samson Industries Co. Ltd, Taiwan, IVB Industrie Vermittlung Und, Germany and Elektronika Velenja d.d. Slovenia, respectively. These offices will be responsible mainly for OEM sales.
BPL has a tie-up with the Dixons group of UK to which it exports colour TVs and batteries which in turn are sold under the Matsui brand. According to Director International Operations L.H. Bhatia, the company is currently exporting 12,000 CTVs valued at $52 million during 1999-2000, almost half of which go through Dixons. The partners are currently exploring the possibility of a 28-inch CTV with an in-built DVD. Additionally, Web-centric TVs are also being planned. However, according to Mr Bhatia, the cost-effectiveness of these products has to be worked out. Dixons is very interested in PC monitors, since most components are sourced from China and Taiwan and the cost of transportation is tremendous.
"BPL has an advantage in CTVs because 90 per cent of the components are sourced in-house," Mr Bhatia said.
According to Dixons Asia Managing Director Neil Robertson, Dixons is all set to introduce BPL batteries in other European markets through its chain, but the CTVs will have to be altered to specifications and may also be an option shortly.
BPL is also finalising its plan to manufacture CFC-free refrigerators which will open up a major market in the SAARC countries and South East Asia. Currently, engineers from Sanyo of Japan, which has a technical tie-up with it for the refrigeration business, are training BPL personnel. The product will however be ready by 2003.
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