Sharp in talks with Foxconn, Japan's INCJ to sell Indian arm

Japan's Sharp Corporation is in talks with two companies, including Innovation Network Corporation of Japan (INCJ) and a group firm of Taiwan's Foxconn, to sell stake in its Indian arm.

"Sharp Corporation has been holding negotiations with several companies regarding our initiatives for management reconstruction such as fundamental structural reforms of our LCD Panel business," Sharp India said in a BSE filing.

The release said the company has narrowed the selection of potential candidates down to two companies, Innovation Network Corporation of Japan (INCJ) and Foxconn's Hon Hai Precision Industry Co Ltd, to proceed with the negotiations.

"Sharp will hold negotiations with each of the companies, aiming to select a definitive partner and conclude an agreement. Sharp expects to select a definitive partner in around a month," the statement added.

In December last year, Sharp said its parent firm Sharp Corporation is exploring options, including stake sale in its Indian arm as part of its turnaround strategy.

Sharp Corporation, Japan had, in December last year, said it "is exploring various options and strategic alternatives, including sale of its shareholding in the company to potential buyers," as part of a turnaround strategy the Indian arm.

Sharp had reportedly registered 50 billion operating loss during the first half of 2015 on account of loss-making LCD business unit.

Sharp in India sells TV panels, refrigerators, ACs, washing machines, vacuum cleaners etc in the home products category.

The company also sells multifunction printers, projector, solar Photovoltaic and touch screen etc. Sharp India had a revenue of Rs189.04 crore in 2014-15. For the first two quarters of the current fiscal, the company had posted a net loss of Rs9.99 crore and Rs2.84 crore, respectively.