Hotline breaks ties with Konka

Hotline joins the growing list of Indian companies which have fallen out with their foreign partners. Konka Electronics I Ltd is a three-way joint venture in which the Chinese company holds 51 per cent stake while Hotline and Wittis group of Hong Kong hold 25 per cent and 24 per cent respectively.

Konka had on Monday announced plans of investing Rs 500 crore in India for the manufacture of a range of consumer electronic products. Also in the offing was setting up of a Ramp;D facility in the country.

quot;We have verbally informed them thatwe are no longer interested in continuing as a partner in the joint venture,quot; said a senior Hotline official.

Konka Electronics director Ronald Zhang, however, said the reports of split in the alliance were not true. quot;We have not received any communication from Hotline. This is mischief of our competitors,quot; he said, hinting that a Korean consumer electronics company was behind it.

Reacting to Konka8217;s denial of the break-up, Hotline officials said that by denying the rift, the Chinese company is just trying to buy time.