BPL Ltd & Sanyo Electric Co. Ltd: An Enduring Alliance

In the early 2000s, BPLL was the leading company in the Indian consumer durable market and enjoyed credibility and trust of consumers and dealers. Analysts felt that it could prove to be an uphill task for the new company to earn back this trust, especially among dealers. A management consultant with Abacus, D.K. Sabharwal, commented, "Once you vacate the space, it is extremely difficult for the player to return to the same place in one of the fastest growing markets in the world."

However, according to research conducted by the company, consumers still perceived the BPL brand to be trustworthy but felt that it had lost its dominant position because it had fallen behind in technology...

It was also considering launching products with new technology, like Aqualoop in washing machines, which would clean the water used for rinsing and reuse it in the washing process. The high technology products were to be sold through 2,500 or so outlets that were to distribute BPL CTVs as well. The number of such outlets was to be increased to around 15,000 in one year. In April 2006, the BPL group too was seriously evaluating its businesses and preparing a road map for the future.

The long-drawn-out debt restructuring exercise was successful in reducing the company's debt burden from Rs. 15 billion in March 2003 to Rs. 2.6 billion in March 2006...