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Videocon Industries was incorporated in 1986.
The company has two core activities, which include
the manufacturing, assembly, marketing and
distribution of consumer electronics and home
appliances, and exploration and production of oil and
gas.The company presently has seven operating
business divisions, in which major divisions are
consumer electronics, home
appliances,components, etc.
In India,Videocon has eleven manufacturing
facilities.The manufacturing facilities produce a
complete range of consumer electronics, home
appliances and critical components such as
compressors, etc. It is the only manufacturer
of glass panels in India.The facility at Bharuch is
largest in the world at a single location and the third
largest overall. Videocon is one of the major CRT
manufacturers globally, with plants in Poland, China
and Mexico.The Poland plant also produces glass
shells. It assembles air conditioners in Oman and
CTV¶s in Italy.
The company has emerged as one of the largest
colour picture tube (CPT) manufacturer in the world
after the acquisition of Thomson's CPT business, and
expects this to grow its international sales to EUR
782.36 million within three years.
‘

It is an ISO 14001 and OHSAS 18001 certified

company and has received the CE approval for
exports to the EU. It has also been certified by
the VDE Testing and Certification Institute and
corresponds with British standards as well.The
company believes that its strategy of end to end supply
chain integration with global scale and low cost base and
with entry into the global brand space through the
acquisition route will transform it into a global CE & HA
powerhouse with a strong cash flow from the oil and gas
business.
   
     

The strategic acquisition of a manufacturing facility in

Poland has provided Videocon with a fully integrated
facility as well as experienced
manpower. Being cheaper than other EU nations,Poland
also acts as a low cost manufacturing base for the
company in the EU.
An additional benefit accruing to the company is the scope offered by
the Poland plant for expansion into other areas.The company plans to
optimise its glass sourcing
‘

by expanding the plant capacity as well as by using the

synergies with other glass factories of Videocon, so that it
can be at par with the tube capacity.
‘

    
R&D is an ongoing process for Videocon, due
to the rapid obsolescence of technologies and
products witnessed in this industry.The company has
three product development centres located at China,
India & Italy. It has recently applied for a patent for a low
cost production process for the plasma panel
manufacturing. In the LCD space, the company have
signed a patent assignment agreement covering 70
patents with a major US corporation.
    !
 lobal majors AB Electrolux and Thompson
Electronics have recently acquired stakes in
Videocon, their nominees are on the Board of
Videocon Industries and the resultant experience and
expertise of these companies should help it in capturing a
significant share of global markets including the EU.
   "

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Videocon proposes to upgrade the facilities
acquired from Thomson SA by adding new product lines
including Slim Tube, Plasma, LCD and other flat panel
displays. In the long term, the company plans to develop
into a global sized vertically integrated entity in the
display device segment along with CPT glass
manufacturing.
‘

This acquisition is in tandem with an increase in its

domestic CPT manufacturing capacity to 24 million
pieces per annum (presently 17 million pieces) as well as
additional capacity of five million pieces per annum from
the alliance with BPL and JCT. It will help the Videocon
 roup to transform into one of the largest players in the
world in integrated manufactur-
ing of CPTs with CPT glass.
The company intends to make investments
of over EUR 391.18 million to meet these plans,and will
source these funds from domestic or international
markets at an appropriate time.
In its Italian facility, the company has re-engineered the
plant and it now assembles end products such
Multinational players are making their presence felt. The
company¶s integration strategy and global scale has
enabled it to supply consumer electronics and
home appliances products in India to organised retail
chains such as Reliance Retail, Pantaloon Retail and
international brands such as Wal-Mart Best Buy etc.
which would ensure a regular off-take
of products.The company plans to further leverage on
this strategy.
‘

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Videocon  roup will launch its mobile services in
Mumbai and Chennai by March, it is planning to
increase the number of its retail outlets across the
country to facilitate its foray. The company plans to
cover the entire country with its  SM mobile services
within the next 18 months. . Datacom has now been
renamed as Videocon Telecommunication Ltd, which
has earmarked an investment of Rs9,000 crore and is
looking at becoming profitable in coming years.
   '    
The group has a strong presence in the oil exploration
business,both domestic and overseas. It is currently
involved in exploration activities in various oil blocks. It
has oil blocks Australia, Brazil,Mozambique and
Istanbul. Videocon is planning to enter the oil
extraction business and has received some proposals
from foreign players. The company also plans to start
extraction activities in oneof its Brazilian blocks by next
year.
‘

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Videocon  roup, a consumer electronics giant, is
planning to set up a 500MW power plant in its
homeland, Maharashtra. It also expects
to achieve financial closure for its  ujarat-based
1,200MW power plant by end-March. The financial
closure for the first phase of
600MW has been achieved; the second phase¶s
financial closure is getting completed. The company is
looking into the land availability issue and other issues
like coal transportation
  %+,    
The BM-C-30 offshore block in the Campos Basin of
Brazil, owned by a consortium of which Videocon
Industries and Bharat Petroleum Corporation (BPCL)
are part through their units, has discovered More
than 90 feet of high-quality net oil pay while drilling the
Wahoo-2 or Wahoo North well in the region. The
Wahoo North well is located five miles to the north and
down-dip from the original Wahoo discovery well, which
had encountered oil in 2008.Anadarko also expects to
drill two to four additional exploration wells in the
Rovuma Basin this year.
‘

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Leading conglomerate Videocon, has forayed into
mobile handset space, it plans to achieve a pan-India
presence by end of February and roll out 15 more
models of handsets in two months in addition to
exploring the option of coming out with 3-  handsets.
 '   '   
Videocon plans to expand its activities in the oil and
gas sector. It has recently bid for block in Egypt and is
also exploring opportunities in the CIS block and other
potential countries.The company is also
hoping to be successful in the New Expl-
oration and Licensing Policy ± V (NELP V) for which it
has already submitted bids.
 - ,      
The company has been chosen as the preferred
bidder to acquire South Korea¶s third largest
electronics manufacturer Daewoo Electronics from its
creditors, who presently hold 97 per cent of the
company. This acquisition would allow it to strengthen
its presence in key markets including The US,Korea,
Japan and the EU.The acquisition would also result in
deriving value out of synergies from back end due to
better cost efficiencies.
‘

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Videocon plans to enter the insurance sector, a growth
area for the Indian economy.The company is in talks
with three French multinational insurance companies
for a possible joint venture for the same. The Ind-
ian economy is growing at a very healthy rate of over 8
per cent per annum.Traditionally consumer durables
have grown at least three times the  DP growth
rate.The company expects the domestic market to grow
at least 20 per cent per annum.With the wide product
range, an extensive distribution network and strong
brand equity it isn well positioned to lead the growth in
this industry.The organised retail industry is one of the
fastest growing segments in the economy. Large Indian
and Multinational players are making their presence
felt.The company¶s integration strategy and global scale
has enabled it to supply consumer electronics and
home appliances products in India to organised
retail chains such as Reliance Retail,Pantaloon
Retail and international brands such as Wal-Mart Best
Buy etc. which would ensure a regular off-take of
products.The company plans to further leverage on this
strategy.
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After the acquisition of Thomson in 2005, Videocon
has emerged as one of the largest Colour Picture
tube manufacturers in the world. It has plants in
Mexico, Italy, Poland and China and manufactures a
range of high-tech products such as slim CPT, extra
slim CPT and High Definition 16:9 format CPT.
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In 2009, Videocon launched its DTH product, called
'd2h'. As a pioneering offer in the Indian DTHm ark et,
Videocon offeredL CD& TVs with built-in DTH
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the DTH service is relatively new in the presence of
other players like ZEE tv's Dishtv, Tata Sky, Air tel
Digital Tv and Reliance's BI  TV providing only the
set top box.
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Videocon Telecommunication Ltd has license for
mobile service operations across India. It launched its
services on 7 March 2010 inMu m b ai.
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The LCD television segment is one of the fastest in
terms of growth rate in Italy. The compounded growth
rate is projected to be around 70% in the next few
years. Videocon in partnership with the local
government is going for a  reenfield venture in this
segment. The Italian central government is giving a euro
180 million grant whereas the regional authorities are
giving a 40 million grant. Videocon would itself pitch in
with about euro 300 million whereas bank loans would
provide a further 700 million.

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When Videocon acquired Thomson¶s CPT business, it
also gained control of Thomson¶s Mexican plants.
However Videocon Industries has a view that it would
expand in the country only if the government gives it
enough incentives. Videocon is demanding a 25-30%
cash benefits from the authorities who are currently
ready to give only about 20%.
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There has been strong competition between the major
MNCs like Samsung, L , and Sony. L  Electronics
India Ltd. has announced its extension plan in 2006.
The company is going to invest $250 million in India by
2011 and is planning to establish a manufacturing
facility in Pune. TCL Corporation is also planning to
establish a $22 million manufacturing facility in India.
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Industries
and Onida are also planning to expand. Videocon has
acquired Electrolux brand in India. Also, with the
acquisition of Thomson Displays by Videocon in
Poland, China, and Mexico, the company is marking
its international presence.
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The&   roup is committed to create a better quality of life for people
and furthering the interests of society, by being a responsible corporate
citizen.
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Electronics and Energy, create products and services that will improve the
quality of life, realize the goals of the world community and protect the
environment.
    
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ensuring mutual prosperity and growth through the implementation 
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 corporate strategies, aimed at identifying opportunities and
responding intelligently to the dynamics of change.
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Today, Videocon InternationalDtd., the flagship company of
the Videocon  roup, is India's leading manufacturer of
Consumer Electronic
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Committed to giving the consumer the best the world has to offer,
Videocon has developed near zero wastage technology which helps
reduce manufacturing costs by optimizing material inputs. Coupled
with quality-consciousness at every stage, the consumer benefits
enormously by getting premium products at affordable prices.
The company currently manufactures Colour TVs, Black & White TVs
and Audio products. At its modern plant at Chitegaon and
Aurangabad, the Company has also undertaken complete backward
integration to manufacture all critical and important components of
its products, such as Electronic Tuners, FBTs, ATDMs and Deflection
Yokes, thereby reducing costs, ensuring quality control and
becoming vertically integrated. It has
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Videocon produces a sophisticated range of Home Audio Systems,

Stereo Radio, Recorders and Personal Stereos, as well as the
contemporary international range of Kenwood Digital Hi Fi
Systems.
     

  


indigenous manufacturing has
been and continues to be an integral part of the company's
philosophy. Perceived as an innovator in its field, Videocon has
notched up many exciting firsts, by exploring the world's most
advanced technologies. In Colour TVs, Videocon was the first
Indian Company to introduce Picture-In-Picture, Turbo Sound,
Surround Sound, Larger Screen Sizes, the Full Flat Square Tube,
Bazooka technology and the Freedom series.
‘

  - 
Looking beyond India, Videocon is now a global player,
acknowledged by the world. It is the first Indian company to win
the prestigious CE approval for exporting its Colour TV to Europe.
Videocon is now entering world market with its operations in the
Middle East, Europe, Indonesia and South Africa.
Videocon Narmada  lass (VN ): a division of Videocon
International Ltd., has the distinction of having set up India's first
plant for the manufacture of  lass Shells for Color Television
Picture Tubes, in technical collaboration with Techneglas Inc., USA
(formerly known as OI-NE  TV Products Inc., USA), world leader in
 lass Shell Technology. The projects in 1990, when the then Prime
Minister of India, the late Shri Rajiv  andhi, laid the foundation
stone for the project.
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VN  has some remarkable achievements to its credit, starting with the
successful absorption of sophisticated technology from Techneglas Inc.,
USA. The CTV  lass Shells manufactured by VN  are at par with
international standards and the Color Picture Tubes made with VN  glass
have already received VDE approval. The facilities include a state-of-the-
art Tool Room and Mould Shop to manufacture and maintain its mould
requirements. Having initially successfully established its 20V, 19V and
13V CTV glass parts, VN  has now developed the 20V 2R the latest
models.
 - "   "    
Till 1994, Indian manufacturers of CTV Picture Tubes were importing  lass
Shells. VN 's production has replaced these imports, thereby saving
almost Rs.200 crores of precious foreign exchange every year.
‘

VN  has now surpassed the norms of performance guaranteed by the

collaborator, Techneglas Inc., U.S.A. and is operating the plant with 150%
capacity utilization - with efficiencies exceeding international standards.
Where fields of sugarcane grow tall and proud. Where bushes of cotton
bud blooms. Where tourists flock to the world-famous caves of Ajanta and
Ellora.
Where India's NO.1 Consumer Electronics and Home Appliances take
shape, to take millions of Indians into a better, brighter future.
This is Marathwada, India, where the Dhoot family launched Videocon
International Limited in 1984, with the avowed purpose of producing
world-class Colour Television through a technical tie-up with Toshiba
Corporation of Japan. Within a decade, Videocon emerged as India's
leading brand of both Colour and Black &White Televisions and continues
to dominate this highly competitive market.
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relentlessly pursuing quality to achieve variousinternational standards of

Quality ControlBreakingthrough, time and again, with innovative products
for abetter life.
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Introduce CCTVs as it has the demand in several areas like restaurants,
airport, railways stations,banks, hospitals, shopping malls, company
offices.
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People do not see the television as a mere electronic device providing
sight & sound. It has now become an entertainment experience and a
lifestyle statement that people are willing to pay for. Since consumers are
ready to shell out money for a lavish entertainment experience, there is
today no limit to the number facilities that a television can envision of
offering. From in built recording to internet facilities to supreme sound etc.
The opportunity for this industry lies in coming up with new features to the
conventional CTV. There is therefore lot of scope for growth and
innovation.
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investments, line speed up / mergers? Target is to increase output and
decrease product costs by increasing productivity of existing lines
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factory by making some changes into furnaces including electrical
boosting. Consider increasing capacity through one more furnace.
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position and can reduce impact of glass pricing volatility
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base of additional 4 million units CTV (other than India)
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The players like  odrej, BPL , Whirlpool, Videocon and Electrolux have
achieved economies of scale.  odrej has a capacity utilization of 75% and
the highest capacity in the industry. This declines their unit cost of every
function of business and enables them to keep their prices low. This will
force the entrant to come in at a large scale and risk strong reactions from
them or come at a small scale and accept a cost and price disadvantage.
 odrej also possesses economies of vertical integration
as
it manufactures its own compressors, which
constitutes a
substantial part of the manufacturing cost. The other
players like BPL and Videocon who are currently
‘

outsourcing their compressors also plan to set up their

own manufacturing units for compressors in the long
run.
 "  
The companies like  odrej, BPL and Videocon, being very old players in
the Indian market enjoy high brand awareness and consumer loyalties.
These brand names are associated with trust and reliability in the Indian
market.
The Korean players like L  and Samsung who engaged in heavy
advertising and brand promotion during the last year have also created a
niche for them in the premium segment. Their brand awareness has grown
tremendously after the recent Cricket World Cup Tournament, during
which they advertised heavily.
These create a barrier to entry by forcing the entrant to spend heavily to
overcome existing consumer loyalties and to build a brand image.
‘


 , 

Huge Capital requirements are posed in front of the new entrant in terms
of advertising, product development, Production facilities, Distribution
channel credit, inventories and for covering up the start-up losses.
 -      
The Indian players like  odrej, Videocon and BPL which are catering to
the mass market have a strong distribution and dealer network.. They have
a presence in the urban as well as the rural areas. Moreover these
companies have established developed ties with the channel members
over the period of time, which are hard to break. Whirlpool has also
developed a strong network of 4000 dealers in urban and semi urban areas
in a period of few years. The South Korean Majors like Samsung and L 
have a dealer network of more than 1500, mainly in urban areas and plan
to expand it in rural and semi urban areas also. This poses a major threat
in front of the new entrant as the
‘

existing firms already serve the channels and the new entrant will have to
persuade the channels to accept its product
 

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promotional allowances, better credit
facilities and advertising support, which will reduce the profits.

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like  odrej, BPL, Videocon are high on the experience curve, as they know
the Indian Market well. This Experience lowers their costs in production,
marketing, and distribution and in other areas of business, thus giving a
cost disadvantage to the new entrant.
 %   O %   
levying duties on the imported Refrigerators and refrigerator parts gives
an advantage to the Indian Players and in a way protect them from price
competition in the market with the MNCs.
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If the company enters in the Frost free, high capacity segment (above 300
Ltrs) it will have to face main competition from L , Samsung, BPL and
Whirlpool.
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Colour Televisions 2. Washing Machines 3. Air Conditioners
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and many other home appliances, selling them through a
Multi-Brand strategy with the largest sales and service
network in India . Videocon  roup brands include Akai,
Electrolux, Hyundai, Kelvinator, Kenstar, Kenwood,
Next, PlanetM, Sansui, Toshibha, Philips (TV Products)
etc.
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