Before this, Matsushita Electric Works had bought out a German company for around Rs1,000 crore.

Anchor, the market leader in the Indian electrical accessories and wiring devices market with annual sales exceeding Rs900 crore will become a consolidated subsidiary of Matsushita Electric Works, Ltd after the transaction. MEW will introduce new products such as home appliances, lighting, home automation, interior design solutions and security systems and security products in India. It will also look at improving the manufacturing efficiency.

Anchor is eyeing 100 per cent growth in the next four years and a 500 per cent growth in the next 10 years.

The price-earnings ratio for the deal is 15 times the 2006-07 earnings.

Anchor Electricals recorded net sales of Rs922 crore for the year ended March 2006 and net profit of Rs187 crore. MEW''s sales stood at $13.7 billion for the year ended March 2006.

For the moment, the joint venture will continue to be called Anchor Electricals. The company will also continue to sell products under the brand name Anchor until Matsushita gets a fair understanding of the Indian consumer and the distribution network in the country, top officials said. The reconstituted board will have six representatives from Matsushita and four members from the Shah family.

Senior Matsushita executive Toshihide Arii will be the chairman and CEO of the new venture, while Atul Shah will continue to be MD of the company.

The joint venture will allow Anchor Electricals to expand its product portfolio and access Matsushita''s proprietary technologies. For Matsushita, Anchor is an ideal launch pad to kick off a full-fledged business operation in India, one of the fastest growing markets in Asia.