Mumbai: Consumer electronics firm Videocon Industries Ltd expects overseas sales to double to $600 million (Rs26 billion) over the next three years as it strives to become a global consumer appliances company, a top official said.
It will also spend $20 million during that period to expand its factory network globally and a similar amount on research and development (R&D), vice-chairman K.R. Kim said.
“Our focus is on (being a) global leader and global quality. We should have a global network and global R&D,” he said in an interview.
Videocon’s chairman Venugopal Dhoot. The company plans to spend $20 million to expand its factory network globally (Photo by: Manvender Vashist / PTI)
Videocon plans to set up factories in Nigeria and Tehran next year, and one in Brazil within three years, he said. It already has a factory each in Mexico and Muscat. The company, which now makes about $300 million in overseas revenue, mainly on colour televisions sales from its Italian operations, expects future growth to be driven by making and selling additional products in new markets, he said.
“Now Videocon has a good reputation in the Indian market and a good market share, so we want to be a global brand,” he said.
Over the next three months it will add an R&D centre to its Aurangabad facility, and another in Mumbai or Delhi. “The overseas market is much more competitive in terms of product quality. So we must have a much better quality, new products, so we need technology,” Kim said.
It also plans to outsource mobile handsets from China and Taiwan for India and will focus on marketing energy-efficient products. Kim also sees growth in LCD televisions in the country.
During the six months to March 2008, Videocon posted a net profit of Rs5 billion on net sales of Rs48.8 billion. Consumer electronics accounted for just over 80% of the net sales.