VIDEOCON, the multi brand and multi facet group is a truly Indian multinational well rooted in multiple industries with a turn over of 22,000 Crores & more than 20,000 employees across the globe was incorporated in 1986. It is India’s first company to successfully implement my SAP ERP version 2004. VIDEOCON group is an ever-revolving group continuing to set trends in every sphere of its activities. The group enjoys an unassailable leadership position in consumer electronics and appliances industry.

TEAM MEMBERS

MUKESH KR GUPTAMANIK XAVIER HENRYSHIV BALAK GIRISATINDER JEET

THE SUCCESS BEGINS

VISION

Videocon is committed to bring happiness in every home around the world by offering high quality product that ease and enrich human life.

MISSIONTo delight and deliver innovative product through ingenious strategy, Intrepid entrepreneurship, cutting-edge technology, insightful marketing, and inspired thinking about the future.

Electrics Energ

y

The symbol of Videocon asserts its passion for global impact, and the two ‘E’s on either side represent the Group’s wide spectrum of interests ranging from ‘Electronics to Energy’. Along with the steely glint, this communicates the group's global ambition, its strength, sterling credentials and innovative drive. A symbol that proclaims a paradigm shift. A sign that represents the new force that is Videocon. Thus recapitulating our principle of reaching out and touching the lives of millions of people.

LOGIC OF LOGO

Late Shri. N. M. Dhoot (Founder)

Mr.Venugopal N. Dhoot Chairman & M.D.

Mr. P.K.N. Dhoot Director

Date of birth 30.09.1951

Qualifications B.E. (Electricals), FIE.

Schooling at Firodiya High School, Ahmednagar

College – Pune Engineering College, Pune

Hobbies/Interest Flute recital & discourse on Bhagwad-Gita

Present Position Chairman & Managing Director

Videocon Group

PresidentThe Associated Chambers of Commerce and Industry of India

(ASSOCHAM)

Other Achievements

a) President – Electronic Industries Association of Marathwadab) Member of Advisory Committee of "Poona University Information Employment

& Guidance.c) Adviser to Govt. of Orissa for Industrial Development of Orissad) Younger brother Shri Rajkumar Dhoot Member of Parliament

About Venugopal Dhoot

Mr.V.N.DhootChairman & M.D.

Mr.P.K.N. Dhoot Director

Mr. Didier Trutt Nominee -

Thomson S.A.

Mr. C. Johan Bygge Nominee AB Electrolux

Mr. Ajay Saraf Nominee

ICICI Bank Ltd.

Mr. M. Chittaranjan

Nominee IDBI Bank Ltd.

Board of Directors

THE

CHRONOLOGY

SUCCESS

of

Key Sector

Consumer Durables(WIDE GOODS)

Thomson CPT

CRT Glasses

Oil & Gases

Major Achievements of Videocon

The largest panel production facility in the world under one roof providing very high economies of scale.

One of the world's largest and most respected CRT glass manufacturers.

Firing the largest furnace of its kind in the world with a tank size of 3300 sq ft.

Major Achievements of Videocon

One of the few companies in the world to convert sand to TV.

One of the largest and most acknowledged CPT manufacturer in the world.

Manufactured India's first rust-free Washing Machine.

MARKETING

Tie-ups with Global Leaders

Product Partner Nature Of Tie-Up

Fly BackTransformers, Tuners

Samsung Electronics Technical Support

Washing Machine Matsushita Electric Technical * Collaboration

Air Conditioner Matsushita Electric Design & Drawing

Refrigerator Matsushita Electric Design & Drawing

Audio Productsand Color TV

Sansui Electric Co. Ltd ODM for Indian Market

Glass Shell Techneglas Technical Collaboration

Audio Productsand Color TV

Akai ODM for Indian Market

Color TV Hyundai ODM for Indian Market

Refrigerator,Air Conditioner andWashing Machine

Electrolux AB Sweden 1.ODM & Indian Market2.Sourcing of components for Global Market3.ODM for Global market

BRAND AMBASSADORS

BCG MATRIX

STARS(APPLIANCES)

QUESTION MARK(ENTERTAINMENT)

CASH COWS(OIL & GAS DIVISION)

DOGS(LEASING AND FINANCE

LIMITED)

Mark

et

gro

wth

R

ate

Market Share

PORTER’S MODELThreat from new entrants in glass

shell

Bargaining power of suppliers

Threat from substitution (LCD,

Plasma Technology)

Threat from competitors (LG,

Samsung, Phillips, Whirlpool)

Bargaining power of customer

Increasing awarenessExposure to global

brands

Thomson

Akai

Sansui

Toshiba

Future Group

Planet m

Mitusi & Hitachi

Alliances and Joint Venture

STRATEGY CONCEPT•Highly efficient geo-diversified business with production facilities for

Flat tubesSlim tubesFlat panel display devicesGlass for panels

•Sourcing of R & D/ technology from Japan /Korea

•Sourcing of R & D personnel from all over the world

PRODUCT STRATEGYStop all curved CPT production

Shift to 100% true flat: TARGET ACHIEVED

Focus on cost reduction

Take full advantage of Digital & HDTV revolution

Conversion of CRT production to Slim

SALES STRATEGYImprove relationship with existing clients

Improve service and quality without putting pressure on price structure

Fetch a better price and avoid crisis of huge stock

Launch of LCD panel assembly(expected to account 50% of market by 2012)

INDUSTRIAL STRATEGYConsider improvement in production lines set-up

This will reduce manpower and overheads per picture tube by 30%

Improve the furnace output in the Poland Glass factory

COST STRATEGYLeverage the strong base of Videocon’s glass business

Reduce production cost by upgrading and improving the production lines. Thomson-Videocon partnership will have its own base of additional 4 million units CTV (other than India)

Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of sales

STRENGHTS

OPPORTUNITIES

WEAKNESSES

THREATS

SWOT ANALYSIS

STRENGHTSVertical Integration

Strategically located manufacturing bases both nationally and internationally.

One of the most extensive sales and distribution network.

STRENGHTS

Manufacturing advantages based on mass production and integration process

Multi brand strategy

Acquired various companies engaged in the manufacture of CPT

WEAKNESSES

Videocon popular in domestic market only.

Working capital cycles are longer in nature.

Slow shifting from CPT to LCD

OPPORTUNITIESIncrease penetration

Further develop the multi brand strategy

Large scale operation can improve the margins of the company

To outperform in domestic market

OPPORTUNITIES

To make forays into Flat Panel Display & Segment

Scope to identify additional oil and gas block

Opportunity to improve level of service to network of dealers and distributors

THREATS

Continuous price reduction

Cost of advertising and after sales services

Third screen(MOBILE PHONES)

FINANCIA

L

REPORT

Particulars Sep 2008 Sep 2007 Sep 2006 Sep 2005

Sales Turnover 10105.13 8710.26 7580.33 5653.83

Other Income 83.47 198.23 268.78 103.12

Total Income 10188.6 8908.49 7849.11 5756.95

Raw Materials 5293.35 4930.01 4266.07 3030.63

Excise Duty 351.47 424.83 361.51 204.42

Power & Fuel Cost 86.77 73.16 66.81 27.37

MANUF EXP 1165.28 794.58 860.95 830.15

Employee Cost 115.82 105.34 94.7 49.53

S&AD EXP 658.96 624.22 630.67 569.33

MIS EXP 257.92 34.5 64.44 320.25

PBDIT 2259.03 1921.85 1503.96 725.27

PBT 1166.96 1082.89 913.66 261.65

Tax 311.96 224.14 95.16 -166.03

PAT 855 858.75 818.5 427.68

DIV(%) 10 35 35 20

EPS 36.93 38.06 36.4 16.16

PROFIT & LOSS A/C

BALANCE SHEET

RATIOS 2008

2007 2006 2005

1)DEBT EQ RATIO 1.07 1.05 1.05 .91

2)CURRENT RATIO 5.29 3.18 4.04 5.02

3)FIXED ASSET 1.10 1.03 1.02 .97

4)INVENTORY 6.44 6.25 5.83 6.49

5)INVENTORY TURNOVERPERIOD(DAYS)

56 58 62 56

RATIO ANALYSIS

6.Operating Margin (%)   24.52  20.18  18.56  15.67

7.Gross Profit Margin (%)   17.75  15.13  11.86  9.81

8.Net Profit Margin (%)   9.99  10.23  11.14  7.78

9.ROCE 13.38  14.23 14.6 15.53

10.Dividend payout Ratio (Net Profit)  2.80 11.10 10.87 14.88

     

      

RATIO ANALYSIS

2005-SEP2006-SEP

2007-SEP2008-SEP

0.8

0.85

0.9

0.95

1

1.05

1.1

DEBT EQUITY RATIO

Series1

YEARS

RA

TIO

2005-SEP 2006-SEP 2007-SEP 2008-SEP0

5

10

15

20

25

30

35

40

EARNING PER SHARE

YEARS

EP

S

2005-SEP 2006-SEP 2007-SEP 2008-SEP0

100

200

300

400

500

600

700

800

900

1000

PROFIT AFTER TAX

Seri...

YEARS

PR

OFIT

AFTER

TA

X

2005-sep 2006-sep 2007-sep 2008-sep0

1000

2000

3000

4000

5000

6000

7000

8000

SHARE HOLDER FUNDS

YEARS

SH

AR

E H

OLD

ER

FU

ND

S

dividend(%)

0

5

10

15

20

25

30

35

40

2008 sep 2007 sep 2006 sep 2005 sep

year

Series1

2005-sep 2006-sep 2007-sep 2008-sep0

2000

4000

6000

8000

10000

12000

SALES TURNOVER

2005-06 2006-07 2007-080

100

200

300

400

500

600

700

800

900

1000

FINANCIAL DATA

other income

depreciation

tax

net profit

dividend(%)

eps

years

DTHRETAIL

TELECOMPOWER

0

20000

40000

60000

80000

100000

120000

140000

INVESTMENT IN NEW PROJECTS

Series1

projects

am

ou

nt

in m

illi

on

●Home theaters- High-end models and HTIB Models

●Large screen television i.e. 32 inch 38 inch

●Plasma televisions

●Manufacturing of components for consumer durables

●Efforts to reduce power consumption

Development in following areas through R & D

Plasma TelevisionMultimedia TVPure Flat TelevisionsComposite Home Entertainment system

To work on better features, quality

Go for new segments and start manufacturing mobile handsets and IT Hardware

Videocon's NEXT Retail buys Planet M

The consumer electronics retailing arm of Videocon Industries has acquired Planet M, for Rs 200 crore with an aim to leverage the brand to tap the young generation.

500 retail outlets of NEXT in India

Videocon’s collaborationWith Akai

• Akai entered the Indian market in collaboration with the Videocon group bearing the identity of Akai Electric Company Limited.

• “It has also strengthened its distribution network by aligning with Videocon."

Semiconductor TFT-LCD PROJECT IN MAHARASHTRA

Videocon Industries will set up a semiconductor FAB to manufacture TFT-LCD

Cost of project RS 8000 crores Requisite technology tie up from IBM. Central government subsidy of 2000 crores has been applied for under the recently announced Semi Conductor Policy. Project will generate employment of 10,000 people.

ADVATAGE OF PLASMA TV

Largest screen formats

Wide range of richer color over 16 million

Less expensive than LCD

Life more than 30,000 hrs

Perfect flat screen

Wide viewing angle

PICTURE T

UBE

MANUFACTURING UNITS ACROSS THE GLOBE

VIDEOCON HAS 17 MANUFACTURING UNITS IN INDIA

IT HAS ALSO PLANTS IN CHINA, ITALY,POLAND, MEXICO

ADVANTAGE OF GLOBAL ECONOMIES OF SCALE

ACCESS TO MANY GLOBAL PATENTS( MORE THAN 2000 PATENTS)

COMPETITION IN GLOBAL CPT MARKET

RAPID ADOPTION OF TECHNOLOGIES

POLITICAL RISK

A SHARP DROP IN PLASMA AND LCD PRICES

THE CONSUMER REALLY IS NOT PRICE SENSITIVE TODAY

COST OF PRODUCTION

LARGEST DISTRIBUTED MANUFACTURING BASE

ACROSS INDIA- 12 FACILITIES

MANAGING A COMPLETE SUPPLY CHAIN

BACKWARD INTEGRATION

TAKING ADVANTAGE OF POLICY FRIENDLY

LOCATIONS

WIDE PRODUCT PORTFOLIO

HR VISION

Creating a performance drivenorganization characterised by competence, pride and commitment

HR MISSION

To act as a catalyst to achieve goals by taking care of professionals growth and aspiration of people.

Why one should join Videocon

• It is an Indian Multinational with a presence in multiple industries.

• It has a turnover of Rs. 22,000 crores.

• It has more than 20,000 employees.

• It was the first Indian company that implemented My SAP-ERP 2004 version.

Careers with VideoconIndustries

Videocon offers careers in various areas ,such as :

• Production/maintenance/quality

• IT software

• Accounts/Finance

• Sales/Marketing/Advertising

• Human Resource

• Purchase /Logistics/Supply Chain Management

• Courier/Transportation

Social Commitments

Philosophy and Resolve:

• Videocon is inspired heavily by the uplifting nature of sports.

• Its ability to draw people together irrespective of differences in race , religion, genders or cast.

• Unity of spirit and purpose is ultimately what builds bridge between diverse culture.

Social Commitments(contd.)

Employee contribution:• Videocon believes its most valuable capital are its people.

• Result-oriented seminars on various topics and workshop.

• These initiatives inspire them to develop their creativity.

Social Commitments (contd)

Sports and Sponsorship:

• The Videocon school of Cricket was launched in Kolkata.

• Its sponsorship of cricketing events shows its commitment and passion for sports as well as its goal to connect with a global audience.

Corporate social responsibility

• Videocon provides hospitals that are 100% charitable and caters to the people in Indian villages.

• Arrange blood donation camp at Dhoot Hospital Blood bank.

• Provide high school education to underprivileged girls.

• Videocon India glass plant has supported plantation of over 2,00,000 teak trees.

Corporate social responsibility(contd.)

Major Projects of Videocon

• Hospitals: Videocon runs a world class hospital with latest equipments. MRI,CT scan machines .

•Schools: Videocon runs a world class school in the village Gangapur .

• Energy conservation: Videocon consistently working on reduction in energy consumption.

Major Projects of Videocon

Key Learning

• Provide wide goods in terms of price and quality under one roof.

• Keep updated with technological upgradation.

• Political risk associated with global business.

• Aware about consumer’s preferences.

• Keep track of global changes.

• Always keep on exploring new ideas.

THANK YOU

PRODUCTS

CTV

LCD

PLASMA

34” TV

FLAT

SLIM CONVENTIONAL TV

COLOUR TV

AC

SPLIT

WINDOW

TOWER

CASSETTE

AIR CONDITIONER

REFRIGERATORS

SIDE BY

SIDE

FROST FREE

DIRECT

COOL

RELATIVE MARKET SHARE

VIDEO

CON

SAMSU

NGL.G.

WHIR

LPOOL

OTHER

S0

10

20

30

40

REFRIGERATORA.C.T.V.WASHING MACHINE

back

WORKING OF LCD

What is TFT-LCD?

Meaning of this term is Thin Film Transistor–Liquid Crystal Display. TFT technology used in this category offers the best image quality in flat panels. This technology is also called as Active Matrix Technology.

B

Videocon through its Wholly Owned Offshore Subsidiary acquired the Color Picture Tube (CPT) businesses from Thomson S.A having manufacturing facilities in Poland, Italy, Mexico and China along with support research and development facilities. Videocon in its pursuit of mission to become a global major in consumer electronics and home appliances with large scale and low cost base for critical components, made its first footprint in acquiring global sized color picture tube manufacturing facilities across the world from Thomson SA. It had already formulated a "2010 road map" which outlines the group's strategy of being one among the top five in both branded consumer electronics and contract manufacturing in the world by 2010.

ACQUISITION OF THOMSON SA

India’s largest crude oil venture in private sector

Reserves of over 250 million barrels, producing 50,000 barrels per day

Extraction of oil at Ravva oil field off the coast of Andhra Pradesh