On an aggressive note

02 October 2000

Japanese air conditioner major, Fujitsu General, is holding negotiations with the $1.3 billion ETA Ascon group for an equity stake in ETA General Private Ltd, Chennai. This is confirmed by Mr. Tsuguo Yagi, president, Fujitsu General, who says that negotiations are on with the ETA Ascon group in this regard.

The ETA Ascon group has its major operations in the Middle East, where it is involved in a range of businesses like family entertainment centres, retailing, jewllery, real estate, electronics and construction. It also has a joint venture with Mitsubishi Electric to sell elevators in the Middle East.

In India the group has interests in electrical contracting, real estate development, automobile dealerships and education. It has several engineering and polytechnic colleges under its fold and is planning to open a medical college.

ETA General, promoted by ETA Engineering Private Ltd, Chennai, manufactures the famed O General brand air conditioners sourcing completely knocked down kits and technology from Fujitsu General.

It is learnt that the Indian group wishes to retain majority control in the company. However, whether the Japanese company would agree to that is doubtful, as the Indian group is dependent on Fujitsu General technology, the differentiating factor in a competitive scenario.

Mr. Yagi was here to inaugurate ETA General's Rs 30 crore, 60,000 units per annum plant in Pondicherry and formally launch the air conditioner in India. The ETA group plans to invest similar amount in the second phase and gradually scale up the capacity to 2.5 lakh per annum, in five years time.