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

            
 
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Case Details:

Case Code : BSTR223
Case Length : 21 Pages
Period : 1982-2006
Organization : Sanyo BPL Pvt. Ltd., BPL Ltd, Sanyo Electric Co. Ltd.
Pub Date : 2006
Teaching Note :Not Available
Countries : India, Japan
Industry : Consumer Electronics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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EXCERPTS

About SECL

SECL began as Sanyo Electric Works in 1947 in Moriguchi, Osaka. Initially, it manufactured bicycle generator lamps. Right from the start, it was known for the quality of its products.

In 1950, it changed its name to Sanyo Electric Co. Ltd. In 1952, SECL became the first company to launch plastic radios in Japan. In 1953, the company started manufacturing televisions. It also launched washing machines with the 'pulsator', a revolutionary technology then.

In 1954, the company was listed on the Tokyo and Osaka stock exchanges. In 1956, the company launched electric fans and heaters. In 1961, it started manufacturing home-use split air conditioners in Japan, the first company to do so. In 1969, it established two subsidiaries - Sanyo Electric Credit Co. Ltd (SECCL) and Sanyo BC. In 1970, the company established a product development center...

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BPLL And SECL: An Enduring Alliance

Technical Collaboration: The relationship between SECL and BPLL began as early as 1982. SECL provided technology to BPLL in diverse product categories. For example, BPLL's alkaline battery business used state-of-the-art technology from Sanyo Energy Tottori Co. Ltd., a subsidiary of SECL.

SECL was a major player in the battery business and its batteries had even been approved by NASA, USA, for its space application programs. The batteries manufactured at BPLL's plants were also shipped to SECL. SECL also held stakes in several companies in the BPL group.

However, until 2005, it stayed away from assuming management responsibilities in any of the companies. In early 2001, SECL picked up a 14% stake in BPLL's subsidiary in the home appliances business - BS Appliances Ltd. The subsidiary manufactured and marketed appliances like washing machines, microwave ovens, vacuum cleaners, dishwashers, gas tables, and cooking ranges...

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