Videocon: Going Global|Business Strategy|Case Study|Case Studies

Videocon: Going Global

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Case Details:

Case Code : BSTA142
Case Length : 11 Pages
Period : 1990 - 2005
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : Electronics

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On 29th June 2005, Venugopal Dhoot (Dhoot), Chairman of Videocon International (Videocon) signed a deal with Thomson SA's Chairman and CEO Frank E. Dangeard to buy the French electronics major's colour picture tube (CPT) manufacturing business for 240 million euros (around Rs 1,280 crore). The deal gave the Indian firm manufacturing plants in Poland, Mexico, China and Italy, along with a Research and Development (R & D) facility in Agnani, Italy.1 Videocon joined the club of global heavyweights in the 151-million-units-a-year worldwide CPT market, not only in terms of capacity, but also R&D capabilities.

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The deal brought almost 2,000 patents into Videocon's fold, something it hoped to leverage, as the market shifted from CPTs to Liquid Crystal Displays (LCD) and Plasma.

A week later, on 8th July 2005, Videocon announced its take over of Swedish giant AB Electrolux's (Electrolux) 91.85 % stake in the latter's Indian subsidiary Electrolux Kelvinator (EKL). Through the agreement, Videocon got the rights to license the Electrolux brand in India for five years and the Kelvinator brand for an unlimited period...

Excerpts >>

1] Nandini, Vaish. “Reinventing Videocon,”, 25th July 2005.

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