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