"A partnership with WLC would help Asian Electronics to penetrate the globally market especially in Europe and the US," said Suresh H Shah, chairman & managing director, Asian Electronics. The deal might be concluded in a few months.
The association with Asian would also help WLC to make India as a global hub of its outsourcing operations, replacing China.
"WLC would source products to the value of $230 million from India, which would be 90 per cent of its total sourcing by five years. Westinghouse sources products of $10 million from India," said Angelo
The Asian Electronics stock closed at Rs 303.50 on Wednesday at the Bombay Stock Exchange, 5 per cent higher than yesterday's closing of Rs 289.05.
WLC sources requirements of $150 million from China, and to a minimal extent from countries such as India, Thailand and Vietnam.
Asian Electronics would be responsible for the selection of vendors and sourcing of appliances for WLC in India. It would also be the marketing partner of Westinghouse in the country.
The partnership would also make Westinghouse brands available in India. "WLC would introduce high design electric fans and lamps in the country. We would be setting up an outlet for our products across major shopping malls here. We are in talks with Big Bazaar in this regard," said Angelo.
Westinghouse is a global marketer of appliances such as electric fans, electric lamps, portable lamps, lighting fixtures and ballasts. The US firm has targeted a turnover of $200 million this year, said Stan Angelo, chairman, WLC.
Asian Electronics is a manufacturer of energy efficient lamps in the country. Some of the key brands of Asian Electronics are Asian E+, Retrolux, Lumini and Dualite Luminaire.
The company registered net sales of Rs 107.7 crore (Rs 1.07 billion) for the year ended March 2005 and a net profit of Rs 10.77 crore (Rs 107.7 million).
Tuning it on
- Asian Electronics will pay Rs 100 crore (Rs 1 billion) for the stake in Westinghouse Lighting.
- The association will help make India a global hub of its outsourcing operations, replacing China.
- Asian Electronics will be responsible for the selection of vendors and sourcing of appliances for WLC in India.
