BPL share price shot up over 11 per cent on NSE yesterday after the electronic brand decided to return the favour and help e-commerce giant Flipkart to re-enter Kerala, a market to which most e-commerce sites had stopped delivery because of lack of clarity in taxes in the state.
Meanwhile, BPL share price was trading 11.36 per cent higher at Rs.57.35 on NSE today. The stock opened at Rs.53.25 from a previous closing of Rs.51.50.
Flashback:
Flipkart had proved victorious in a case in the Kerala high court which they had been fighting against the local commercial taxes department over a Rs.47.15 cr-penalty stating that they were merchants. The court had held that e-commerce companies were facilitators between the buyers and sellers. The southern state had also prohibited e-commerce companies for using public transport to deliver large e-commerce products. The ban has been lifted for the Onam season.
Flipkart is now betting on BPL, which began in Palghat in Kerala, to re-enter the small but vital market to sell the consumer durables including washing machines and television sets.
BPL, once nation's largest consumer durable company, lost its charm after the country opened its market up for foreign companies and lost out to the giant, aggressive Korean conglomerates LG and Samsung. It was last year, when Flipkart revived the brand and helped the company to make televisions and also started selling them on its e-commerce platform. Since then, BPL reported sales of more than Rs.100 cr and hopes to post sales of Rs.800 cr by next year by launching novel television sets, washing machines and other items.
For more information, visit BPL share price history.
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