THE CONSUMER ELECTRONICS AND HOME APPLIANCE INDUSTRY
The Indian market has a turnover of approximately 190 billion. The industry can be divided into 2:
The white goods like CTV, DVD, Audio etc
The brown goods like Refrigerators, Washing Machines etc
KEY GROWTH INDUSTRY DRIVERS
Rising income levels and increasing affordability; fuelling consumerism and growth in demand for aspirational goods
Change in perception of Consumer goods as ‘basic necessities’ as opposed to ‘luxuries’, largely driven by increased awareness and advertising.
Rationalizing of prices by key players, due to a conducive tariff policy by the Government.
Increasing demand for technology driven replacement of consumer goods and household appliances. The consumption of Television from the company has risen from 17 to 20% whereas washing machines had risen to 25.1%.
Videocon was founded in 1987 by Nandlal Madhavlal Dhoot.
At that time it used to manufacture TV and Washing Machine.
Videocon entered Refrigerators and coolers segment in 1991.
In 1995, Videocon started manufacturing Glass shells for CRT
1998, Videocon started manufacturing Compressors & Compressor Motors.
The Videocon group is the largest homegrown consumer electronics and home appliances company in India today with an annual revenue of $4.1 billion
18 manufacturing facilities and an employee base of 10,000 people.
Currently, it is the number-four player in the Indian household appliances segment and is competing with Whirlpool, LG, and Samsung.
Videocon has the largest distributed manufacturing base across India - 12 facilities.
LG has two, Samsung has one, and Onida has two.
Videocon's distributed capacity has ensured that it has gained ample experience in managing a complex supply chain.
Research & Development
Company has R&D facilities both in India and abroad
Innovation of new products with more features
Improvement in the Productivity & Quality
Neuro-Fuzzy logic washing machines
user friendly no-frost refrigerators
makes components like compressors and printed circuit boards (PCBs)
shells for the picture tubes which accounts for 50% of PTs cost
Manufacturing advantage of mass production and integration of processes
Strategically located manufacturing bases, internationally and domesticallyà company is close to key markets ( eastern Europe, Russia, Central & South America and China)
Multi brand strategy to obtain greater market shareà able to target different socio economic market segments with each brand
The oil& natural gas business provides the company with a stable income stream
The oil produced in the RAVVA oil field is of high quality( >0.01 % of sulphur)
Still considered as a domestic brand only, yet to establish itself as a full fledged brand in international market.
The working capital cycles are higher
Can increase the penetration into the Indian market.
Opportunity to further develop the multi-brand strategy.
Further increase the production to reduce the cost.
Outperform in the market with innovative products like slim televisions, PDP’s and LCD’s
Scope to identify additional oil and gas blocks that are suitable for exploration and have potential for production. ( the company plans to bid for the rights to exploit the hydrocarbon blocks which shall be open for bidding in future.)
Due to stiff competitions, the prices are reducing. If the costs are not controlled then it may prove to be a threat and margins will be under pressure.
The cost of marketing, advertising and after sales service are increasing tremendously
STRATEGIC BUSINESS UNITS
SBU 1 Consumer...
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