Electrolux losses soar as two arms continue to bleed

New Delhi, July 3: Losses of Swedish multinational giant AB Electrolux from its two subsidiaries - Maharaja International and Intron Ltd - h...

New Delhi, July 3: Losses of Swedish multinational giant AB Electrolux from its two subsidiaries – Maharaja International and Intron Ltd – have accumulated to a staggering Rs 114 crore as on March 31, 1998.

Company insiders fear that losses could increase further as Electrolux has now entered into another joint venture Voltas also for manufacture of refrigerators and washing machines, which will hurt Maharaja and Intron owing to to increased competition with Electrolux-Voltas.

The Electrolux-Voltas joint venture proposal was cleared by FIPB on June 27.

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It is learnt that Electrolux was not asked to obtain a `no-objection certificate’ from the existing partners and original promoters of Intron and Maharaja. FIPB has been of late insisting on no-objection letters from Indian partners of existing joint ventures if the foreign partner proposes to enter into a fresh joint venture with another Indian company, especially for manufacture of similar products.

When contacted Intron vice-chairman and its originalpromoter Inder Khosla, who is now a minority shareholder, confirmed that he had not issued any no-objection letter for Electrolux joint venture with Voltas.

Maharaja International vice-chairman and original promoter Harish Kumar, could not be contacted for his comments.

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