"The preliminary talks are for identifying the products which can be manufactured by us at our existing facilities. We may also seek technical tie-ups with other domestic players for the purpose. Plans are also afoot to enter the two-wheeler component sector," highly-placed BPL sources said.

It is believed that the preliminary discussions are on with automobile majors like Mahindra & Mahindra and the TVS group to offer the products on an original equipment manufacturer (OEM) basis. BPL Sanyo Technologies Ltd, a group firm, has already supplied car stereos to Mahindra Ford on OEM basis. The cost effective components can also be exported at a later stage to the developed countries, the sources said.

At present, revenuefrom the components division forms around 12 per cent of the group turnover, which has been pegged at around Rs 3,000 crore. With the group seeking more export destinations, the division's output is expected to double in the next two years.

To achieve the target BPL has divided its components division into four parts -- automobile, information technology, telecom, and consumer electronic products. While the IT components are manufactured at BPL Ltd's IT division, telecom products are produced at BPL Telecom Ltd's manufacturing facility. Consumer electronic components are manufactured by other group companies.

Sources said the proposed automobile components division is likely to come under the Electronic Research Ltd (ERL), another BPL group company. ERL, at present, manufactures deflection yokes, flyback transformers, electronic tuners, and modulators.

"While the BPL colour television (CTV) component accounts for more than 50 per cent market share, the group sees a 25 per cent growth in other divisions.We supply electronic components to leading audio/video companies like Sony, Sharp, Voltas, Aiwa, Videocon and Grundig," the sources said.