Videocon lines up Rs 450 crore for 3 manufacturing units

Sambit Datta

Mumbai, July 15: Videocon International Ltd (VIL) will invest Rs 450 crore for setting up three manufacturing facilities.

Of the total investment, Rs 400 crore will be spent for setting up two plants in Hyderabad and Mohali while Rs 50 crore is earmarked for another unit in Jharkhand.

VIL has plants at Hosur near Bangalore, Salt Lake in Calcutta, and Aurangabad. The company recently set up another plant at Attibele near Bangalore.

VIL chairman and managing director VN Dhoot said, “As part of our business expansion strategy, we are poised to set up ‘satellite’ manufacturing facilities which is cost-effective when compared to a plant with huge production capacity. We have always focused on customer satisfaction. Our company has taken initiatives to give the consumer the best possible deal. Continuous upgradation and indigenous manufacturing have made our brands most popular in the market.”

Both the Hyderabad and the Mohali plants will be operational by next year. For the Hyderabad plant, the land has been identified and the “bhumi puja” will be done by Andhra Pradesh chief minister N Chandrababu Naidu on July 30. “Both the plants will have a capacity of around 0.5 million tonne white goods which will include televisions, washing machines and refrigerators. Majority of the investment will be funded through internal accruals.” Mr Dhoot added.

According to market estimates, in the CTV segment, Videocon has improved its market share at 12.4 per cent for January-April 2001. The company’s share stood at 10.5 per cent in January-December 2000. Videocon has managed to retain its grip on the markets for refrigerators with a market share of more than 15 per cent while for washing machines it is more than 40 per cent.

However, according to the latest ORG data available, Videocon’s market share in CTV has gone down to around 11-12 per cent for January-May 2001 from the level of 14 per cent posted during the period between January-May last year.