The Hindu Business Line : Videocon group eyes $1-b global sales

WITH the acquisition of Thomson's colour picture tube plant in Italy, the Videocon group is looking at reaching international sales of $1 billion in three years time.

According to Mr V.N. Dhoot, Chairman and Managing Director, Videocon Group, the acquisition is in line with the Group's strategy to globalise its activities in the field of consumer electronics, household appliances and components.

"We are aiming to balance our global and domestic sales. We expect both international and domestic sales to stand at $ 1 billion in the coming years", he said.

The group is also keen to increase the presence of the Videocon brand in international markets.

"We are already selling products such as CTVs, air conditioners and washing machines under the Videocon brand in Europe and the West Asia. In fact, we are currently the fourth largest brand in the West Asia", Mr Dhoot said.

In addition to the recent acquisition, Videocon currently has a manufacturing presence in Russia, Bahrain and in Italy (where it owns a compressor plant).

Meanwhile, though not revealing the details of the picture tube unit acquisition, Mr Dhoot said that the company intends to meet the funding requirements for this acquisition "through an off shore arm, on `stand alone' or `no recourse' basis."

The plant located in Anagni, Italy, has a capacity to produce 3 million units per annum. The annual sales generated from the unit are likely to be in the range of around 200 to 250 million euros.

Videocon plans to eventually use the Anagni Unit to be a European hub for manufacturing of consumer products and components in order to make a headway in European markets.

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