Mumbai, Aug 7: The Videocon group and Matsushita of Japan are forming two separate joint ventures for producing washing machines and air conditioners in the country. In both the ventures, Matsushita will hold a 70 per cent stake with the balance being held by Videocon.

It is also understood that talks are on to manufacture refrigerators as part of a separate venture or one of the joint ventures. However, no decision has been reached on this front.

The washing machines and air conditioners that would be manufactured by the new joint venture companies would be sold under the `National' brandname.Confirming the move to set up two different joint ventures with Matsushita, Videocon director PN Dhoot, said the equity capital of the washing machine venture would be Rs 80 crore and that of the air conditioner company Rs 35 crore.

Videocon Appliances presently manufactures washing machines, air conditioners and refrigerators in technical collaboration with Matsushita and sells them under the Videocon brandname. The company would continue to operate in the same way even after the formation of the new joint ventures.According to Dhoot, there would be no clash of interest between Videocon Appliances and the two joint ventures that are being formed. He added that the products of these companies would not compete with each other.

According to sources, Videocon Appliances manufactures produces that are targeted at the lower and middle end of the market. The new ventures would manufacture the top of the line models of washing machines and air conditioners and would target them exclusively at the premium market.

The joint venture between the two groups has been in the offing for some time now. It is believed that previously Videocon was insisting on a 45 per cent stake in the venture while Matsushita was the offering the Indian partner only 35 per cent.

Videocon is a diversified group with interests in consumer electronics, power, real estate and oil. It is a major manufacturer of colour televisions, VCRs, VCPs, audio products, washing machines and refrigerators. The group is also jointly developing the Ravva field (it is extracting about 35,000 barrels per day and selling it to Hindustan Petroleum) and is in the process of setting up a 1,050 MW power plant in Tamil Nadu in a joint venture with Asea Brown Boveri (ABB). It is also doing a feasability study for setting up a fully integrated petrochemical complex in Karnataka. Matsushita is one of the world's largest manufacturers of consumer electronics and white goods. This Fortune 500 company owns famous brands such as `National' and `Panasonic'.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.