Company Profile of Videocon
Company Profile of Videocon
Company Profile of Videocon
Videocon’s mission expression has been crafted to envelope both extant and emerging
realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing and inspired
thinking about the future.”
A breakdown of the statement above reveals a ‘means and end’ approach, where the end is
articulated at the beginning with the means linked to it.
Back to top
The die was cast. Over the years, Nandlalji's path-breaking attitude found expression in a myriad ways, earning him the well-
deserved reputation of the pioneer of industrial activity in Marathwada India.
In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into business. Through a technical tie up with
Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household
name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million people to
improve their quality of life.
Milestones
History
Videocon d2h
Founded 2009
Parent Videocon[1]
Website Videocond2h.com
Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4 with
DVB S2 digital compression technology.
Its main competitors are cable television and other DTH service providers - Airtel digital TV, Reliance
Big TV, DD Direct+, Dish TV, Sun Direct TATA Sky andVideocon D2H.
Contents
[hide]
• 1 History
• 2 Subscriber Base
• 3 Channel List
• 4 See also
• 5 Reference
• 6 External links
[edit]History
On 15 March, 2011, Videocon d2h launched India’s first high definition-digital video recorder (HD-
DVR) with 3D. it allows users to pause, rewind and forward live TV and record up to 200 hours of
content. Videocon d2h will also have its own active channel for 3D content and HD content (with 16:9
aspect ratio, 5x picture quality and HD digital sound). A set-top box with 3D capabilities but without the
DVR will also be available and cost 2,490. The 3D set-top box with HD-DVR will be priced at 3,990.[3]
[edit]Subscriber Base
Videocon d2h had about 2.7 million subscribers as of march 2011.[4] There are about 30 million DTH
subscribers in India as of February 2011.[5]
[edit]Channel List
The following is the list of channels provided by Videocon d2h as of March 2011.[6]
Channel Name
Help Channel
Hindi Entertainment
105 Colors
109 Sony
111 Imagine TV
113 SAB TV
117 9X
133 Firangi
135 DD National
Hindi Movies
209 Filmy
English Movies
245 HBO
251 MGM
Movie On Demand
News
309 IBN-7
317 India TV
319 DD News
321 News 24
322 Sudharshan TV
355 CNN-IBN
359 CNN
387 ET Now
Sports
401 ESPN
415 DD Sports
Kids
503 Hungama
505 Disney Channel
507 Nickelodeon
509 Pogo
511 Disney XD
513 Animax
Music
551 MTV
553 Channel V
555 9XM
557 VH1
561 Zing
563 Masti
569 Bindaas
609 TLC
613 AXN
619 Zoom
621 Fashion TV
623 Care World
625 DD Bharati
627 E24
631 FX
Religious
677 Aastha
681 Paras TV
Bengali
711 24 Ghanta
713 DD Bangla
Marathi
721 Zee Marathi
729 Mi Marathi
731 Saam TV
739 DD Sahyadri
Gujarati
745 DD Girnar
Punjabi
751 PTC Punjabi
761 mh1
763 DD Punjabi
Nepali
765 Nepal 1
North East
767 NE TV
770 DY365
771 Rang TV
Bhojpuri
775 Mahuaa TV
Urdu
787 DD Urdu
Oriya
789 Tarang TV
792 Orissa TV
794 DD Oriya
Tamil
801 Sun TV
803 KTV
804 Adithya TV
807 Seithigal
809 Chutti TV
813 Jaya TV
815 Kalaignar TV
819 Sirippoli
823 Vasanth TV
825 Raj TV
831 Udaya
837 U2
843 TV 9 Kannada
847 Kasthuri TV
849 DD Chandana
Malayalam
851 Surya TV
853 Kiran
855 Asianet
857 Kairali
858 Amrita
859 DD Malayalam
865 Indiavision
869 Shalom TV
Telugu
871 Gemini TV
883 ETV 2
885 Maa TV
891 Sakshi TV
893 NTV
Videocon
From Wikipedia, the free encyclopedia
Industry Conglomerate
Founded 1979
Area served
(Chairman)
Home Appliances
Components
Office Automation
Mobile phones
Wireless
Internet
Petroleum
Satellite television
Power
Website Videocon.com
Videocon is an industrial conglomerate with interests all over the world and based inIndia. The group
has 17 manufacturing sites in India and plants in China, Poland, Italyand Mexico. It is also the third
largest picture tube manufacturer in the world.[2][3]
Contents
[hide]
• 1 Corporate profile
o 1.5 DTH
o 1.6 Telecommunication
• 2 Acquisition of Thomson SA
2.6.1 Italy
2.6.2 China
2.6.3 Mexico
• 4 References
• 5 External links
[edit]Corporate profile
The Videocon group has an annual turnover of US$ 2 billion, making it one of the largest consumer
electronic and home appliance companies in India. Since 1998, it has expanded its operations
globally, especially in the Middle East.[2]
[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, selling them through
a Multi-Brand strategy with the largest sales and service network in India.[4]Videocon Group brands
include Akai, Electrolux, Hyundai, Kelvinator, Kenstar, Kenwood, Next(Store), PlanetM(Store), Sansui,
Toshiba,Philips (TV Products) etc.
[edit]Mobile Phones
In November 2009 Videocon launched its new line of Mobile Phones[5]. Videocon has ever since
launched a no. of Innovative handsets ranging from Basic Colour 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 simcards of Videocon mobile services along with 7 of its Handset
Models.
[edit]DTH
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 32". 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 March 2010 inMumbai.
[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
The acquisition came at a time when Thomson was facing a fall in demand in developed markets for
television with CPTs and was moving more towards Flat-screen and Plasma Television. However,
Videocon saw an opportunity in the emerging countries for CPTs and hence pursued with the
acquisition. Besides, the acquisition gave Videocon, the access to advanced technology giving the
company control over an R&D facility in Agnani, Italy. The major reasons behind this acquisition .
[7]
were
Cost cutting – Videocon was better positioned to shift the activities to low-cost locations and also it
could integrate the operations with the glass panel facility in India with the CPT manufacturing facilities
acquired from Thomson S.A. Videocon wanted to leverage its position in the existing parts of the
business and this acquisition would give it a strong negotiation position and could reduce impact of
glass pricing volatility. Videocon could also reduce the costs by upgrading and improving the existing
production lines.
Vertical Integration – The acquisition helped Videocon in vertically integrating its existing glass-shell
business where it had been enjoying substantially high margins.[8] Videocon’s glass division had the
largest glass shell plant in a single location. This gave the company an unrivalled advantage in terms
of economies of scale and a leadership position in the glass shell industry. The acquisition also gave
Videocon a ready-market for its glass business and it was part of Videocon’s long-term strategy to
have a global vertically-integrated manufacturing facility.
Rationalization of Product Profile – Videocon modified its product profile to cater to the changing
market needs like moving away from very large size picture tubes to smaller ones.[9]
Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to
improve the setup for the production line and line speed post-merger. Its focus was to increase sales
while reducing the costs and thereby improving the productivity of the existing line. The company also
wanted to foray in a big way into LCD panels back-end assembly . On the sales front the company
wanted to leverage on the existing clients of Thomson and build relation as a preferred supplier to
maximise sales. Also, Videocon could benefit from OEM CTV business with the help of Videocon’s
CTV division, invest for new models and introduction of new technologies.[10]
[edit]Thomson’s perspective
In 2004 Thomson planned entry into the high-growth digital media and technology business. Also,
Thomson wanted to exit consumer and electronics businesses as they were incurring significant
losses. After sale of its TV business to Chinese group TCL, and Tubes to Videocon, Thomson divested
from the audio/video accessories business which was the last unit of its consumer electronics
business. The need to divest are quite evident from the losses that it incurred in these businesses
particularly that the unit that it sold off to Videocon, the Optical Modules activity, and the Audio/Video &
Accessories businesses which totalled around €749 million for 2005. Moreover Thomson had done
some acquisitions that were in line with boosting their revenues in the following years. [11]
[edit]Other Competitors for the Acquisition
When Videocon entered the race for the colour picture tubes manufacturing capacity of Thomson SA
in November 2004, there were 16 other bidders. Videocon stood slim chances given the fact that it had
to battle it out with players like LG, Philips, Samsung andMatsushita, Daewoo and several Chinese
manufacturers but finally managed to close the deal. The deal catapulted Videocon into the No. 3 slot
in the global pecking order for CPTs. An official of Videocon said on the deal "The word is out in the
world that India and Indian companies are not just a good bet by themselves, but also a hedge against
China.“ [12]
The second scenario is a more aggressive one in term of trends predicted. It assumes that the switch
to TrueFlat would be faster, more overcapacity, more competition from LCD manufacturers and rising
price strategy pressures in general. The second scenario obviously requires an industrial strategy
which is more adapted to the environment.
However even if the second scenario arises,Videocon believes there is an opportunity in the CRT
business. Though it is very obvious that in the developed markets of the western world the demand is
shifting towards the flat panel side(FPD it is expected to contribute 70% of TV market in these
regions),in the emerging markets like BRIC CRT still holds fort. CRT holds a dominant 70% share in
these markets. When translated into number of units the demand is more than 100 million units. As
Videocon is primarily based in these countries, it hopes to harness the value of the Thomson
acquisition in the coming years.[citation needed]
The LCD television segment is one of the fastest in terms of growth rate in Italy. The compounded
growth rate is projected to be around 70% in the next few years. Videocon in partnership with the local
government is going for a Greenfield venture in this segment. The Italian central government is giving
a euro 180 million grant whereas the regional authorities are giving a 40 million grant. Videocon would
itself pitch in with about euro 300 million whereas bank loans would provide a further 700 million.
[edit]China
In the Thomson plant located in China the local Chinese Government is the minority shareholder.
[edit]Mexico
When Videocon acquired Thomson’s CPT business, it also gained control of Thomson’s Mexican
plants. However Videocon Industries has a view that it would expand in the country only if the
government gives it enough incentives. Videocon is demanding a 25-30% cash benefits from the
government of Mexico.