Tescos neighbourhood market enters united states

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Tescos neighbourhood market enters united states

It is also the third largest picture tube manufacturer in the world. Contents 1 Corporate profile o o o o o o o o o o o o 1. They have recently diversified into areas such as DTH, power, oil exploration and telecommunication.

It launched its services on 7 April inMumbai. A having manufacturing facilities in Poland, Italy, Mexico and China along with support research and development facilities. However, Videocon saw an opportunity in the emerging countries for CPTs and hence pursued with the acquisition.

The major reasons behind this acquisition were: 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.

This gave the company an unrivaled advantage in terms of economies of scale and a leadership position in the glass shell industry. 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.

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.

Staying Stuff

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, Thomson wanted to exit consumer and electronics businesses as they were incurring significant losses.

Moreover Thomson had done some acquisitions that were in line with boosting their revenues in the following years.

Tescos neighbourhood market enters united states

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.

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.

Based on all of these factors there were two scenarios that emerged from the budget of Videocon. The first scenario is a conservative one. 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.

When translated into number of units the demand is more than million units. As Videocon is primarily based in these countries, it hopes to harness the value of the Thomson acquisition in the coming years.

However it is getting support from the local government which want to prevent job cuts in form of grants. The government is in fact trying to set up a Greenfield venture in form of a LCD manufacturing facility in partnership with Videocon. The banks are also supporting Videocon and with help from all these quarters Videocon expects to turn around the plant in Italy.

In Poland,the situation is more promising and Videocon hopes that plant over there will get in black in the very near future.

Despite facing a highly competitive market Videocon has managed to turn a plant around while the other is on its way. In China Videocon is adopting a different strategy for manufacturing CTVs as the local players dominate the market.

It plans to supply these players by taking advantage of low-cost nature of mainland the number targeted by it about 6 million CPTs. The deal is expected to happen at current market prices. On the Bombay stock exchange its trading around against the 52 week high of in Jan Videocon was founded in by Nandlal Madhavlal Dhoot.

At that time it used to manufacture TV and Washing Machine.About HTML Preprocessors. HTML preprocessors can make writing HTML more powerful or convenient.

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Main => Off Topic => Topic started by: The_Gaffer on September 25, 2008, 10:30:23 CET

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