Sharp Corporation considering stake sale in Indian arm

NEW DELHI: With Japan-based Sharp Corporation exploring possibility of stake sale in its Indian arm, Sharp India today said it has approved a proposal allowing the parent firm to do due diligence on its operations.

The board of Sharp India today permitted "a due diligence on the operation of company by Sharp Corporation and potential buyer based on the information regarding the company", the company said in a filing to the BSE.

Sharp Corporation is exploring options, including stake sale in its Indian arm as part of its turnaround strategy.

On December 4, it had said Sharp Corporation, Japan the majority shareholder, "is exploring various options and strategic alternatives, including sale of its shareholding in the company to potential buyers".

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

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

Besides, in business products category, it sells multifunction printers, projector, solar Photovoltaic and touch screen etc.

Sharp India had a revenue of Rs 189.04 crore in 2014-15. For the first two quarters of the current fiscal, the company had posted net loss of Rs 9.99 crore and Rs 2.84 crore respectively.