Diversification Strategy

Topics: Cathode ray tube, Videocon, Videocon d2h Pages: 7 (1823 words) Published: January 23, 2013
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Videocon Industries Ltd. Videocon Logo.svg
Type Public
Traded as BSE: 532129
Industry Conglomerate
Founded 1979
Founder(s) Venugopal Dhoot [1]
Headquarters Gurgaon, India
Key people Venugopal Dhoot
( Chairman & Managing Director) [1]
Products Consumer Electronics
Home Appliances
Office Automation
Mobile phones
Satellite television
Revenue DecreaseINR 127.565 billion (US$2.32 billion)(2011)[1] Net income DecreaseINR5.45 billion (US$99.19 million)(2011) [1] Employees 9,000 (2012)
Subsidiaries Videocon Telecommunications Limited
Videocon d2h
Videocon Consumer Electronics & Home Appliances
Website www.videocon.com

Videocon Industries Limited (BSE: 511389, NSE: VIDEOIND) is an industrial conglomerate headquartered in Gurgaon, India, with interests all over the world, and is an Indian multinational company. The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world.[2][3] The group is a US$4 billion global conglomerate. Contents


* 1 Corporate profile
o 1.1 Consumer electronics
o 1.2 Mobile phones
o 1.3 Colour picture tube glass
o 1.4 Oil and gas
o 1.5 DTH
o 1.6 Telecommunication
* 2 Acquisition of Thomson SA
o 2.1 Acquisition rationale
o 2.2 Thomson’s perspective
o 2.3 Other competitors for the acquisition
o 2.4 Pre-merger scenario analysis
o 2.5 Post merger situation (2008)
o 2.6 Thomson’s exit from Videocon
* 3 Possible purchase of General Electric's Appliance division * 4 References
* 5 External links

[edit] Corporate profile

The Videocon group's core areas of business are consumer electronics and home appliances. They have recently diversified into areas such as DTH, power, oil exploration and telecommunication. [edit] Consumer electronics

In India the group sells consumer products like colour televisions, washing machines, air conditioners, refrigerators, microwave ovens and many other home appliances, through a multi-brand strategy with the largest sales and service network in India.[4] [edit] Mobile phones

In November 2009, Videocon launched its new line of mobile phones.[5] Videocon has ever since launched a number of innovative handsets ranging from basic color FM phones to high-end Android devices. And in February 2011, Videocon Mobile Phones launched the revolutionary concept of ZERO paise per second with pre-bundled SIM cards of Videocon mobile services along with 7 of its handset models. [edit] Colour picture tube glass

Videocon is one of the largest CRT glass manufacturers in the world, operating in Mexico, Italy, Poland and China. [edit] Oil and gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day.[6] [edit] DTH
Main article: Videocon d2h

In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in the Indian DTH market, Videocon offered LCD & TVs with built-in DTH satellite receiver with sizes 19" to 42". This concept in 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 BIG TV providing only the set top box. [edit] Telecommunication

Videocon Telecommunications Limited has license for mobile service operations across India. It launched its services on 7 April 2010 in Mumbai. [edit] Acquisition of Thomson SA

Videocon through its Wholly Owned Offshore Subsidiary acquired the Color Picture Tube (CPT) businesses from Thomson S.A having manufacturing facilities in Poland, Italy, Mexico and China along with support research and development facilities. [edit] Acquisition rationale...
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