Videocon plans logistics venture with Hitachi, Mitsui

Videocon plans logistics venture with Hitachi, Mitsui
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First Published: Mon, Jul 14 2008. 11 22 PM IST

Growth spur: Videocon Industries Ltd chairman V.N. Dhoot.
Growth spur: Videocon Industries Ltd chairman V.N. Dhoot.
Updated: Mon, Jul 14 2008. 11 22 PM IST
Mumbai: Videocon Group, which controls India’s largest consumer electronics maker, plans to set up a logistics company with Hitachi Ltd and Mitsui and Co. Ltd, as the nation’s rapid economic growth spurs trade.
Growth spur: Videocon Industries Ltd chairman V.N. Dhoot.
The venture with the Japanese companies will start this year, Saurabh Dhoot, director of Videocon, said in a phone interview on Monday. He declined to give more details.
“We have substantial infrastructure in logistics, like warehouses, land and trucks,” Dhoot said. “Now we want to convert that from a cost centre to a profit centre since there is significant scope for logistics business in India.”
Videocon, which runs the “Next” and “Planet M” retail stores, would be the initial customer for the venture, he said. The Economic Times newspaper earlier reported that Videocon was in talks with the two companies, without identifying the source.
Videocon Industries Ltd, the group’s listed unit, gained 0.36%, or Re1, to close at Rs275.60 on Bombay Stock Exchange on Monday.
Bloomberg
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First Published: Mon, Jul 14 2008. 11 22 PM IST