Thursday, July 17, 2008

‘V’ for Videocon

Watch how the Dhoots are charting out the 2008 roadmap

“Play it big”- this desi multinational has begun chanting this slogan on a much more serious note over the last few years. The fact is manifest in the heightened noise that Videocon has been creating in 2007, and 2008 promises to be no different, going by the huge expansion plans in its kitty. Says an analyst at PINC research: “Innovation will be the key driver in the coming years for Videocon and the company will be leveraging its investment in innovation big time.”

That apart, the group, steered by CEO Venugopal Nandlal Dhoot, has strategically located manufacturing bases domestically, and its subsidiaries internationally. While speaking to 4Ps B&M, Anirudh Dhoot (son of V. N. Dhoot), Executive Director, Videocon Industries, says, “We are planning a manufacturing unit in Uttarakhand in Rudrapur district, which will get operational from February 1, this year. This will become a big centre in north India for us.” The plant is slated to generate a huge manufacturing capacity of around one million CTVs, 0.6 million refrigerators and 0.3 million air conditioners annually, adding extra oomph to Videocon’s ambitions. Videocon’s Energy to Electronics strategy (E2E) is also set to make a mark for the company. The company is also foraying into a whole spectrum of products including laptops, microwaves, ovens and PDAs, which will be unleashed by March this year.

Small surprise then that the group is foreseeing a turnover of Rs.3,000 crore this year. “Of course, their market share in coming years is bound to increase because of the company’s R&D and ambitious diversification plans,” asserts R.C. Chopra, Electronics Analyst, CII.

V. N. Dhoot is also bent on ramping up Videocon’s retail presence across the country. The bid is to scale up their number of outlets from the present 230 to 1,000 outlets across the country. Besides, the specialist CEO (known for his expertise in squeezing extra costs in the production chain through manufacturing synergies) is also mulling tie-ups with retail chains like E-Zone, Reliance Digital, Spencers and Chroma (to sell its various brands under one umbrella). “We are looking for a new platform as we have a strong retail channel, which provides us a big scope for future expansion,” elaborates Dhoot.

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Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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