No takers for GE's appliances unit

New Delhi: Global aviation to finance major, General Electric (GE) is having serious trouble getting rid of its consumer appliances unit globally. The company, that has been looking for a strategic partnership, spin off or even a possible sell off of its appliances unit, has none of the options going for it yet.
Sources close to the development told SundayET that dearth of serious buyers in the market, depressed sentiments and flawed business model have amplified the company’s problems. “It is already hurting the company’s ability to grow earnings in the near future. The unit has become a thorn in the flesh,” said a company insider.
The immediate result at least in the Indian context is that many employees from the GE Appliances R&D centre in Bangalore have already left the organisation.
A GE India spokesperson said: “The company doesn’t respond to rumour or speculation.” An e-mail sent to the global communications and public affairs official of GE didn’t elicit any response. Headquartered in Kentucky, GE Appliances is a $7.2 billion (Rs 36,000 crore) business and employs about 13,000 people worldwide.
It must be noted that China’s Haier, Korea’s LG, Mexico’s Controladora Mabe, and Turkey’s Arcelik had all earlier shown interest in the business.
A senior consumer analyst who spoke on conditions of anonymity said it is difficult to find a buyer for a company not making money.
16/11/08 Mansi Tiwari & Aman Dhall/Economic Times

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Categories: Foreign Nov 2008, Indian Aviation- In General Nov 2008