Sharp in talks with firms like Foxconn to divest in India arm

Japan-based Sharp Corporation is in talks with two companies, including a Foxconn group firm, to explore possibility of stake sale 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.

As of today, we have narrowed the 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, it added.

"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 said.

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.

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 a net loss of Rs 9.99 crore and Rs 2.84 crore, respectively.