Leading consumer durable brand Videocon Industries would double its exports to $1 billion from the current $50 million in the next five years. Outlining the $5-billion group?s strategy in an interview to FE, Pradeepkumar N Dhoot, director of Videocon Industries said the company was working on a twin strategy ? expanding the domestic market while simultaneously pushing exports.
?Exports have to go up for our company. The overseas markets look good and we would hit $1 billion by 2015,? Dhoot said. He said the company had seen growth across segments, consumer durables and appliances and mobile handsets, and expected the growth momentum to continue. Experts peg the consumer durable market to grow two and a half times over the next few years, with an annual growth rate of around 20% plus.
Dhoot said over 50% of the company?s revenues come from the rural areas, which account for a population of less than 1 lakh.
?One big growth area for us is the rural markets. They contribute a major chunk to our company?s overall revenues,? he said. ?The average income levels for people is going up. The national per capita average is gradually rising which gives companies like ours a perfect platform to grow and reach out to these new segments,? he added.
The group diversified into Rs 27,000 crore mobile handset market last year and Dhoot said that the company had identified this as a key growth driver over the next few years. ?The mobile penetration still on the lower side in India and the market is growing at a huge pace. Currently in India our market share is around 2%. Our target is to reach 10% in the next 12 months,? he said.
On the growth plans of its mobile phone services arm, Videocon Mobile Services, Dhoot said that the company was aggressively expanding its network pan-India. ?There are specific plans for our mobile phone services arm…currently we have 11 circles,? he added.
