Sep 9, 1999|
Videocon focuses on Europe
The Videocon Group plans to launch a new 14-inch colour television (CTV), to spearhead its entry in the European consumer electronics market.
The Videocon group manufactures and markets a wide range of consumer durables, which include refrigerators, washing machines, air conditioners, and other household appliances. The company has tied up with Matsushita Electronics, Japan for producing and marketing white goods. Videocon is the market leader in the washing machines segment with a 58% market share and commands 20% market share in the refrigerators segment. It is also a leading producer of television sets, audio and video systems.
Videocon has already initiated talks with some European companies that can provide an assembly line to manufacture the 14-inch CTVs. Industry watchers are of the view that the group may opt for Italy, as it already owns an Italian compressor manufacturing company known as Necci.
The group plans to source vital components from India to make its products price competitive. But, the colour picture tubes will have to be sourced from its European counterparts, as they attract high import duties. In the long term, the group is targeting to corner at least 3% in global markets in each product category it operates in and hopes to become a Rs 200 bn global consumer durables giant by 2007.
If the company manages to get recognition in the overseas market, it will help it leverage its brand in other white goods segments and spur its globalisation drive. The group will be able to hedge its operations since it will be catering to a wider market. On the flip side, the European market is very competitive and hence margins are likely to be thinner.
More Views on News
Sorry! There are no related views on news for this company/sector.
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407