Electrolux forms new JV with Voltas

MUMBAI, OCT 1: The Electrolux group, the world's leading household appliances manufacturer, today announced a joint venture in India with...

MUMBAI, OCT 1: The Electrolux group, the world8217;s leading household appliances manufacturer, today announced a joint venture in India with Voltas Ltd8211;Electrolux Voltas Pvt Ltd8211;for the manufacture of household appliances in the country.

While Electrolux would hold 74 per cent of the equity in the new company, the remaining 26 per cent would be with Voltas, a company statement said here.

According to the joint venture agreement, two Voltas factories, a refrigerator and compressor unit in Warora and a washing machine factory in Butibori, near Nagpur, would be transferred to the new company. Though the management team for the new company would be appointed by Electrolux, the entire workforce of the Voltas plants being transferred to Electrolux Voltas Pvt Ltd would be absorbed by it. The transfer of the companies along with the Voltas brand name would be effective from today, the statement said.

In the second phase of the joint venture expected to take place in April next year, two additional Voltasfactories, a refrigerator factory in Nandalur and a compressor factory in Hyderabad, would be transferred to the new company along with the quot;Allwynquot; brand name.

quot;The two phases together will make the US a major refrigerator and washing machines manufacturer, offering a complete range of refrigerators and washing machines. This will more than double Electrolux sales in India,8221; company8217;s country manager R Ramasundar said.

The Electrolux group is already involved in three joint ventures in India with Maharaja International Ltd, Intron Ltd and Eureka Forbes Ltd. While Electrolux holds 55 per cent of the equity in its joint venture with the Maharaja International Ltd for manufacturing of refrigerators under Kelvinator brand name, it has 74 per cent stake in Intron Ltd, which manufactures and sells Electrolux brand front-loading washing machines.

Electrolux holds a minority stake of 40 per cent in Eureka Forbes Ltd, which manufactures and sells water purifiers and vacuum cleaners.