Company Analysis Videocon
THE CONSUMER ELECTRONICS AND HOME APPLIANCE INDUSTRY
The Indian market has a turnover of approximately 190 billion. The industry can be divided into 2:
The white goods like CTV, DVD, Audio etc
The brown goods like Refrigerators, Washing Machines etc
KEY GROWTH INDUSTRY DRIVERS
Rising income levels and increasing affordability; fuelling consumerism and growth in demand for aspirational goods
Change in perception of Consumer goods as ‘basic necessities’ as opposed to ‘luxuries’, largely driven by increased awareness and advertising.
Rationalizing of prices by key players, due to a conducive tariff policy by the Government.
Increasing demand for technology driven replacement of consumer goods and household appliances. The consumption of Television from the company has risen from 17 to 20% whereas washing machines had risen to 25.1%.
THE COMPANY
Videocon was founded in 1987 by Nandlal Madhavlal Dhoot.
At that time it used to manufacture TV and Washing Machine.
Videocon entered Refrigerators and coolers segment in 1991.
In 1995, Videocon started manufacturing Glass shells for CRT
1998, Videocon started manufacturing Compressors & Compressor Motors.
The Videocon group is the largest homegrown consumer electronics and home appliances company in India today with an annual revenue of $4.1 billion
18 manufacturing facilities and an employee base of 10,000 people.
Currently, it is the number-four player in the Indian household appliances segment and is competing with Whirlpool, LG, and Samsung.
FINANCIAL RESULTS
CORE COMPETENCE
Videocon has the largest distributed manufacturing base across India - 12 facilities.
LG has two, Samsung has one, and Onida has two.
Videocon's distributed capacity has ensured that it has gained ample experience in managing a complex supply chain.
COMPETITIVE
The Indian market has a turnover of approximately 190 billion. The industry can be divided into 2:
The white goods like CTV, DVD, Audio etc
The brown goods like Refrigerators, Washing Machines etc
KEY GROWTH INDUSTRY DRIVERS
Rising income levels and increasing affordability; fuelling consumerism and growth in demand for aspirational goods
Change in perception of Consumer goods as ‘basic necessities’ as opposed to ‘luxuries’, largely driven by increased awareness and advertising.
Rationalizing of prices by key players, due to a conducive tariff policy by the Government.
Increasing demand for technology driven replacement of consumer goods and household appliances. The consumption of Television from the company has risen from 17 to 20% whereas washing machines had risen to 25.1%.
THE COMPANY
Videocon was founded in 1987 by Nandlal Madhavlal Dhoot.
At that time it used to manufacture TV and Washing Machine.
Videocon entered Refrigerators and coolers segment in 1991.
In 1995, Videocon started manufacturing Glass shells for CRT
1998, Videocon started manufacturing Compressors & Compressor Motors.
The Videocon group is the largest homegrown consumer electronics and home appliances company in India today with an annual revenue of $4.1 billion
18 manufacturing facilities and an employee base of 10,000 people.
Currently, it is the number-four player in the Indian household appliances segment and is competing with Whirlpool, LG, and Samsung.
FINANCIAL RESULTS
CORE COMPETENCE
Videocon has the largest distributed manufacturing base across India - 12 facilities.
LG has two, Samsung has one, and Onida has two.
Videocon's distributed capacity has ensured that it has gained ample experience in managing a complex supply chain.
COMPETITIVE